CALIFORNIA STATE ACCOUNTANCY BOARD TAKES DISCIPLINARY ACTION AGAINST VIOLATORS
SACRAMENTO, Calif., Dec. 27 /PRNewswire/ -- The California State Board of Accountancy released a list of disciplinary actions taken against violators today. Complaints of Certified Public Accountants' or Public Accountants' alleged misconduct are thoroughly investigated under the auspices of the State Board of Accountancy. In some cases information is gathered by the Department of Consumer Affairs' Division of Investigation. Following investigations, a review is performed by the Board of Accountancy's Administrative Committee, and a decision is made either to close the case due to lack of evidence, or to refer the matter to the Attorney General for review and preparation of an accusation against the licensee. If charges are filed against a licensee, that individual may either enter into a settlement agreement to be acted upon by the Board, or a hearing is held before an independent administrative law judge who submits a proposed decision to be considered by the 12-member Board of Accountancy. The Board may either accept the proposed decision or decide the matter itself. The following is a summary of disciplinary actions taken by the California State Board of Accountancy against licensees at the November 18, 1994 Board meeting in Costa Mesa, Calif. Note the listing for disciplinary cases in your area: BRAWLEY, CALIF. -- WILLIAM HURLBURT The proposed Stipulation in the matter of the Accusation filed against William Hurlburt was adopted by the Board of Accountancy at its November 18, 1994 meeting. Mr. Hurlburt admitted that he was grossly negligent in his preparation of an audit for year ending June 30, 1992; a review of financial statements for the period ending May 31, 1992; a compilation for the period ending December 31, 1991; and a separate compilation for the five months ending May 31, 1992. The Board revoked Mr. Hurlburt's license, revocation was stayed with one year probation imposed. The probation terms include: 24 hours of additional CPE as directed by the Administrative Committee. At his own expense, Mr. Hurlburt must provide outside Certified Public Accountant review of all audits, review and compilation engagements prior to release, reimbursement to the Board for investigative and legal costs; and other standard terms of probation. LOS ANGELES -- BENIGNO BERCASIO J. ALAS The proposed Stipulation in the matter of the Accusation filed against Benigno Bercasio J. Alas was adopted by the Board of Accountancy at its November 18, 1994 meeting. Mr. Alas had prepared three fraudulent tax returns (for years 1988, 1989, 1990) for a client in order to assist the client to qualify for bank loans. Mr. Alas also practiced public accountancy for the period October 1, 1991 to August 6, 1993 with an expired license. Further, Mr. Alas was grossly negligent in his performance of an audit for the year which ended December 31, 1990. The Board revoked Mr. Alas' license. Revocation was stayed, with three years probation imposed. The probation terms include: suspension for 180 days; reimbursement to the Board for investigative and legal costs; completion of 40 hours of CPE in addition to the CPE required for relicensure; completion of a Board approved Ethics course; outside Certified Public Accountant to review, prior to issuance of audit reports, any new audit engagements, and other standard terms of probation. LOS ANGELES -- JERRY GOTLIEB The proposed Stipulation in the matter of the Accusation filed against Mr. Gotlieb was adopted by the Board of Accountancy at its November 18, 1994 meeting. For purposes of settlement, Mr. Gotlieb neither admits nor denies, but does not contest that as the Regional Accounting and Auditing Director and Partner of Laventhol and Horwath, he was allegedly involved in two audits which were performed in a grossly negligent manner. The Board placed Mr. Gotlieb's license on 18 months probation. The probation terms require him to complete 250 hours of community service, as approved by the Administrative Committee of the Board, and other standard terms of probation. MARINA DEL REY, CALIF. -- RUBIN KITAY The proposed Stipulation in the matter of the Accusation filed against Rubin Kitay was adopted by the Board of Accountancy at its November 18, 1994 meeting. Mr. Kitay had previously been disciplined by the Board, effective May 9, 1981. Mr. Kitay was subsequently the subject of the following additional charges filed by the Board. During 1981 to 1986, Mr. Kitay solicited accounting clients to invest or make loans in an entity in which he was an officer and sole shareholder; that Mr. Kitay failed to fully disclose to his clients the suspended status of the entity and misrepresented the nature and liquidity of the investments; that he further accepted commissions and/or finders fees for referring clients to invest in limited partnerships. Mr. Kitay's Certified Public Accountant certificate was surrendered. The Accusation was dismissed. Mr. Kitay fully understands and agrees that in acting upon any future application for relicensure or reinstatement which respondent ever files in the State of California, the Board shall deem all of the charges and allegations contained in Accusation No. 91-16 to be true and to constitute cause for denial of Mr. Kitay's application without the necessity of presenting any evidence. PASADENA, CALIF. -- HENRY ANDING The proposed Stipulation in the matter of the Accusation filed against Henry Anding was adopted by the Board of Accountancy at its November 18, 1994 meeting. Mr. Anding performed audits and issued four audit reports for a client for the period ended March 31, 1993, relative to an off-shore insurance company. Mr. Anding's audit work constituted gross negligence in the practice of public accountancy in that he failed to document the audits were properly planned, failed to document an understanding of the internal control structure, failed to obtain sufficient competent evidential matter, and failed to disclose in his report the client's departure from generally accepted accounting principles. Mr. Anding's license was revoked. Revocation was stayed with three years probation imposed. Probation terms include: suspension for sixty days; prohibition from undertaking any audit engagements during the probation period; completion of 24 hours additional CPE in the areas of compilation and review; reimbursement to the Board for investigative and legal fees; and other standard terms of probation. SAN DIEGO -- DONALD COOK The proposed Decision in the matter of the Accusation filed against Donald Cook was adopted by the Board of Accountancy at its November 18, 1994 meeting. In December 1991, Mr. Cook was convicted of 32 counts of grand theft; 19 counts were for amounts taken in excess of $25,000 and 10 counts were for amounts taken in excess of $100,000. These acts involved Mr. Cook's realty exchange business. Mr. Cook diverted proceeds to himself and his other business entities, leaving his realty exchange business without funds to close the property exchange transactions. Mr. Cook's Certified Public Accountant certificate was revoked, and he must reimburse the Board for investigative and legal costs. TARZANA, CALIF. -- EUGENE LIBOFF The proposed Stipulation in the matter of the Accusation filed against Eugene Liboff was adopted by the Board of Accountancy at its November 18, 1994 meeting. In 1988, Mr. Liboff volunteered to pay 1988 business taxes to the City of Los Angeles on behalf of his client. The client then issued a check to Mr. Liboff, who deposited the check into his personal account. In 1990, the City of Los Angeles informed Mr. Liboff's client that it was delinquent on its 1988 business taxes. During investigation, it was revealed that Mr. Liboff had failed to pay the taxes, resulting in the client having to pay substantial penalties and interest charges. Mr. Liboff's license was revoked. Revocation was stayed with three years probation imposed. Probation terms include: suspension for 90 days; reimbursement to the Board for investigative and legal costs; passage of a Board approved Ethics Exam; prohibition from receiving or disbursing funds for or on behalf of any person or business entity; full restitution to the client; and other standard terms of probation. During the period from December 20, 1993 to December 20, 1994, the Board received 821 complaints; 372 complaints resulted from services being performed by persons practicing accountancy without a California license; 881 complaint cases were closed; 358 investigations were opened; 21 legal accusations were filed; 25 citations were issued; and 32 disciplinary actions were taken by the Board. Copies of the accusations and decisions regarding any of these disciplinary actions are available by sending a written request to the Board of Accountancy office, Attention: Disciplinary Action, 2000 Evergreen Street, Suite 250, Sacramento, CA 95815. Please indicate licensee's name, and enclose your check or money order in the amount of $3.00 for each request. -0- 12/27/94 /CONTACT: Carol Sigmann, Executive Officer of the Board of Accountancy, 916-263-3980/
CO: California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Board of Accountancy ST: California IN: SU:
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