ALJDEC decisions subject to certification as final

14F-2014.073-ACY · State Board of Accountancy · 2014-10-05

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: September 14, 2014 APPEARANCES: The Arizona State Board of Accountancy appeared through Assistant Attorney General Michael Raine, Esq. Respondent Andrew Francis failed to appear. ADMINISTRATIVE LAW JUDGE: Brian Brendan Tully _____________________________________________________________________ FINDINGS OF FACT 1. The Arizona State Board of Accountancy (“Board”) is the authority for regulating the practice of public accounting by Certified Public Accountants in the State of Arizona. 2. Andrew Francis (“Respondent”) is the holder of Certified Public Accounting Certificate No. 9389-E issued by the Board. 3. On March 19, 2014, the Board voted to offer Respondent a consent order for suspension and imposition of a civil penalty arising out of Respondent’s non-compliance with the Board’s continuing professional education requirements. 4. On March 28, 2014, Board staff mailed the consent order to Respondent, notifying him that a response was due within thirty days pursuant to A.A.C. R4-1-455.03(F). The deadline for Respondent to respond to the consent order was April 29, 2014. 5. On May 2, 2014, Respondent submitted an untimely signed copy of the consent order to the Board. 6. On May 5, 2014, the Board voted to accept Respondent’s untimely submitted executed consent order and to order a second consent order for Respondent’s untimely response with the imposition of an additional $100.00 civil penalty for the untimely response. 7. On May 21, 2014, Board staff mailed the second consent order to Respondent and required a response by Respondent within thirty days pursuant to A.A.C. R4-1-455.03(F). 8. Respondent has never responded to the Board’s second consent order. 9. On or about June 12, 2014, Board staff received information from a third party that on or about June 9, 2014, Respondent had pled guilty to several felonies involving theft and fraud in Maricopa County Superior Court Case No. CR2012-007294-001. 10. Respondent did not disclose his felony convictions to the Board as required by A.A.C. R4-1-456. 11. On July 25, 2014, the Board issued a Complaint and Notice of Public Hearing in ASBA File No. 2014.073. The parties were advised that an evidentiary hearing would be conducted on September 15, 2014, at 1:00 p.m., before the Office of Administrative Hearings, an independent agency, in Phoenix, Arizona. 12. Respondent failed to appear at the time scheduled for the hearing and did not request to appear telephonically. After the expiration of a fifteen-minute grace period, the Administrative Law Judge convened the hearing in Respondent’s absence. 13. At the hearing, the Board presented its case through the testimony of Jim Dubé, the Board’s Deputy Director. 14. Deputy Director Dubé testified that Respondent was selected for a random audit of his continuing professional education. On December 2, 2013, Board staff sent a notification of the random audit for Respondent to submit to the Board by January 2, 2014. On December 9, 2013, the notification mailing was returned to the Board as undeliverable because it had been sent to Respondent’s employer of record, but the employer returned the mailing because Respondent was no longer employed by the former employer. Deputy Director Dubé testified that Respondent had not submitted a change of address to the Board. 15. On or about January 16, 2014, Respondent responded to an email that had been sent by Board staff. Respondent stated that he had ongoing personal issues. Board staff informed Respondent that he had to respond to the continuing education random audit by February 21, 2014, so that the results could be submitted at the Continuing Education Committee meeting on February 25, 2014. However, Respondent failed to timely submit the required documentation. 16. Deputy Director Dubé testified to the facts surrounding the Board’s first consent order and the second consent order. 17. Deputy Director Dubé testified that Respondent’s certificate is presently suspended. CONCLUSIONS OF LAW 1. The Board has jurisdiction over Respondent pursuant to A.R.S. § 32-701 et seq and A.A.C. R4-1-101 et seq. 2. Pursuant to A.R.S. § 41-1092.07(G)(2), the Board has the burden of proof in this matter. The standard of proof is by a preponderance of the evidence. See A.A.C. R2-19-119(A). 3. Respondent’s conduct violated the provisions of A.R.S. § 32-741(A)(9), namely A.A.C. R4-1-455.03(F), and A.R.S. § 32-741(A)(15). 4. Respondent’s conduct violated the provisions of A.R.S. § 32-741(A)(9), namely A.A.C. R4-1-456, because Respondent failed to disclose his felony convictions to the Board and Respondent failed to submit the written report as required by the Rule. 5. Respondent’s conduct violated A.R.S. §§ 32-741(A)(1) and 32-741(A)(2) because Respondent has been convicted of felonies involving theft and fraud. RECOMMENDED ORDER Based on the foregoing, it is recommended that Respondent’s Certified Public Accounting Certificate No. 9389-E be revoked on the effective date of the Order entered in ASBA File No. 2014.073.

In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order shall be five (5) days from the date of the certification. Done this day, October 6, 2014.

/s/ Brian Brendan Tully Administrative Law Judge

Transmitted electronically to:

Monica L. Petersen, Executive Director Arizona State Board of Accountancy -----------------------

Office of Administrative Hearings 1400 West Washington, Suite 101 Phoenix, Arizona 85007 (602) 542-9826