Facts: CJ hired firm after he had been sued on two separate civil matters regarding a prior audit he conducted for a client several years prior. Both cases alleged that CJ committed fraud and misrepresented details in the audit which caused damages to the plaintiffs. Both cases settled prior to trial and one required CJ to pay monetary damages to a plaintiff.
Outcome: Both cases were reported to the Board as required by Board rules. The firm argued that although CJ was sued and did agree to pay damages for one of the matters, no determination or finding was made regarding any fraud, misrepresentation or other misconduct. CJ did not admit to any misconduct in either settlement and therefore the firm argued that the Board had no jurisdiction to take action. After review by the Board committee, the committee determined that no violation occurred. Both matters were dismissed.