The Texas State Board of Public Accountancy (TSBPA) licenses and regulates certified public accountants (CPAs). Therefore, the TSBPA receives complaints about CPAs who have allegedly violated the laws and rules that govern them. If sufficient evidence of a violation exists, the TSBPA can bring formal enforcement action against CPAs.
Obtaining experienced legal counsel to represent your interests in disciplinary proceedings before the TSBPA is crucial. Representation by experienced legal counsel is often significant in reaching a positive outcome in your case. As a result, if you are facing a complaint before the TSBPA, you should consult a CPA license defense attorney for help.
The TSBPA ratified some Agreed Consent Orders and Proposals for Decisions from administrative law judges after contested disciplinary hearings at its most recent meetings in May and July 2024. The following is a synopsis of these recent disciplinary actions.
Agreed Consent Orders
Investigation No. 23-10-06L
In this case, Respondent entered an Agreed Consent Order (ACO) with the TSBPA which provides for the suspension of her certificate for two years. Following the two-year suspension, her certificate will be revoked for eight years, but the revocation will be stayed and the Respondent placed on probation to run concurrently with her criminal probation. Respondent also must participate in the Accountants Confidential Assistance Network (ACAN) and Alcoholics Anonymous.
Respondent’s disciplinary proceedings arose from a history of alcohol-related criminal convictions, including felony driving while intoxicated 3rd (DWI) and a deferred adjudication for felony evading arrest in 2023.
Investigation Nos. 23-05-06L and 23-05-07L
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Respondents entered an ACO with the TSBPA that provides for a reprimand, payment of an administrative penalty of $1,000 and payment of administrative costs of $935.20. One Respondent also must complete eight hours of technical continuing professional education (CPE) concerning individual tax. This disciplinary action stemmed from the failure of Respondents to properly report the sale of a personal residence on a client’s tax return.
Investigation No. 22-09-60L
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Respondent entered an ACO with the TSBPA providing for a revocation of his certificate. However, the revocation was stayed, and Respondent was placed on probation for four years. Respondent also must participate in the ACAN after he failed to report to DWI convictions to the TSBPA, including felony DWI 3rd in 2022.
Investigation No.: 23-12-01L
Respondent entered an ACO with the TSPBA. The terms of the ACO provide that Respondent will receive a reprimand, pay an administrative penalty of $25,000, and pay $819.70 in administrative costs. Respondent also must complete eight hours of CPE in real estate tax, eight hours of CPE in IRS representation and four hours of CPE in ethics. This case resulted from the Respondent preparing tax returns for a client while he held a majority share of the client’s stock. The IRS determined that entries on the tax returns were not supportable, which contributed to the client incurring additional taxes, penalties, and interest.
Investigation No.: 23-11-06
In this case, Respondent entered an ACO with the TSBPA that provides for a reprimand, payment of a $5,000 administrative penalty, and payment of $705.64 in administrative costs within 30 days. The TSBPA also places the Respondent on limited scope practice, which requires pre-issuance reviews of any audits, compilations, and reviews before being issued through a licensed firm enrolled in a peer review program.
The ACO also requires Respondent to notify her clients that any attest work completed through the unlicensed entity is invalid; as a result, clients must be given the option of being refunded their fees or having the attest work reissued through a licensed firm enrolled in a peer review program if it was subject to pre-issuance review. These disciplinary proceedings arose after Respondent issued audited financial statements for two employee benefit plans through an unlicensed entity that failed to meet professional standards.
Investigation No.: 23-11-07L
Respondent entered an ACO with the TSBPA, which provides for a reprimand, an administrative penalty of $2,500, and administrative costs of $864.54 to be paid within 30 days. The ACO also places Respondent and his new firm on limited scope practice, which prohibits them from performing audits, compilations, and reviews until the limitation of scope of practice is lifted. This case stemmed from the Respondent issuing audited financial statements for an employee benefit plan that failed to meet generally accepted auditing standards, as well as U.S. Department of Labor regulations, when he did not have a licensed CPA firm.
Proposals for Decisions
Investigation No.: 23-08-11L
In this case, TSBPA staff offered an ACO to Respondent to avoid further disciplinary action, but he failed to respond. As a result, a disciplinary hearing was held before the TSBPA Executive Director on March 29, 2024. The TSBPA approved the staff recommendation that Respondent’s certificate be revoked and that he be assessed an administrative penalty of $10,000 and administrative costs of $663.11. The disciplinary proceedings arose from a criminal conviction for money laundering involving at least $1,500,000 of investor funds while working as a financial advisor.
Investigation No.: 23-09-01L
TSBPA staff offered Respondent an ACO revoking his certificate in lieu of further disciplinary action after a criminal conviction for wire fraud for misappropriating at least $1,480,000 by inflating her salary from her employer. After a hearing held before the Executive Director of the TSBPA on March 29, 2024, the TSBPA approved the staff recommendation that Respondent’s certificate be revoked, that a $10,000 administrative penalty be assessed, and that administrative costs of $506.70 be assessed.
Investigation No.: 23-08-07L
In this case, Respondent failed to respond to the offer of an ACO by TSBPA staff that would have revoked his certificate. The disciplinary proceedings arose after Respondent failed to respond to numerous client inquiries about the status of work to be completed, failed to provide a client with a copy of a tax return, failed to complete an engagement in a timely manner, and failed to respond to communications by the TSBPA.
A hearing was held before the TSBPA Executive Director on June 20, 2024, and the TSBPA approved the staff recommendation that Respondent’s certificate and license be revoked. The TSBPA also assessed an administrative penalty of $10,000 and administrative costs of $2,813.46.
Investigation Nos.: 23-08-12L & 23-08-13L
Respondents failed to respond to an offer of an ACO by TSBPA staff, which would have revoked their certificates and licenses in lieu of further disciplinary action. The disciplinary case arose after Respondents failed to respond to numerous client inquiries or communications by TSBPA. The Executive Director of the TSBPA held a hearing on June 20, 2024, at which it approved the staff recommendation that Respondents’ certificates and licenses be revoked. Respondents also were ordered to pay an administrative penalty of $10,000 and administrative costs of $2,496.5.
We Can Advocate on Your Behalf in Proceedings Before the TSBPA
The accounting license defense lawyers of Bertolino LLP can help guide you throughout the disciplinary complaint process. Regardless of the allegations you may be facing, we are here to represent your interests and work to minimize the negative effects of a complaint on your license and career. Our goal is to help you resolve the allegations against you and maintain your CPA license. Call us today at (512) 980-3751 to reach the offices of Bertolino LLP or contact us online.
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