ALJDEC decisions subject to certification as final

18F-2018.141-ACY · State Board of Accountancy · 2018-06-08

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

In the Matter of Certified Public Accountant Certificate No. 16285-E Issued to:

KARTER P. KLUMPYAN,

Respondent.

No. 18F-2018.141-ACY

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: June 04, 2018 at 1:00 PM.

APPEARANCES: Assistant Attorney General Scott Donald, Esq. appeared on behalf of the Arizona State Board of Accountancy (“the Board”), with Christopher Rasmussen as a witness. No appearance(s) on behalf of Karter P. Klumpyan (“Respondent”).

ADMINISTRATIVE LAW JUDGE: Jenna Clark.

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Having heard the evidence and testimony and having considered the record in this matter, the undersigned Administrative Law Judge hereby makes the following Findings of Fact and Conclusions of Law and issues the following Recommended Order to the Executive Director of the Board.

FINDINGS OF FACT

Procedure and Background

Per the Complaint and Notice of Hearing, the Board referred this matter to the Office of Administrative Hearings, an independent state agency, for an evidentiary hearing on June 04, 2018, to determine whether the Board has good cause to take disciplinary action against Certificate No. 16285-E issued to Respondent.

Respondent did not request an informal Settlement Conference in this matter.

On March 26, 2018, the Board voted to proceed to an administrative hearing for revocation of Respondent’s certificate for failure to respond to their January 10, 2018, as required by Ariz. Rev. Code R4-1-455.03(D).

At the hearing, the Board submitted two exhibits and presented the testimony of Mr. Rasmussen, Assistant Director of Regulation and Compliance.

Although the start of the duly noticed hearing was briefly delayed allow Respondent additional travel time, he did not appear, personally or through an attorney, and did not contact the Office of Administrative Hearings to request that the start of the hearing be further delayed. No request to continue was submitted on Respondent’s behalf, nor was a request to appear telephonically. Consequently, Respondent did not present any evidence to defend his Certified Public Accountant Certificate.

Hearing Evidence

The Board drafted and mailed Respondent a letter via Certified Mail on January 10, 2018, putting him on notice that he had been selected to participate in continuing professional education (“CPE”) audit by the Board’s CPE Advisory Committee.

The letter explicitly puts Respondent on notice that he could face disciplinary action for failing to provide timely proof of CPE requirements.

Although the letter advised Respondent that he was required to respond by February 10, 2018, no response was ever received by the Board.

At the hearing, Mr. Rasmussen testified that registrants, such as Respondent, are required to provide current contact information, including their address of record, to the Board in their registration renewal. Registrants are also permitted to submit a change of address form to the Board.

Mr. Donald argued that Respondent’s certificate be revoked, as the evidence established that Respondent willfully refused to be regulated or disciplined by the Board.

Mr. Donald also requested that Respondent be required to reimburse the Board for the cost of litigating this matter, including attorney’s fees.

CONCLUSIONS OF LAW

The Complaint and Notice of Hearing the Board mailed to Respondent at his addresses of record was reasonable, and Respondent is deemed to have received it.

The Board has personal and subject matter jurisdiction over Respondent pursuant to Ariz. Rev. Stat § 32-701 et seq. and Ariz. Admin. Code R4-1-101 et seq.

The Board has the authority to discipline Respondent pursuant to Ariz. Rev. Stat. §§ 32-741(A) and 32-701(10).

Pursuant to Ariz. Rev. Stat. § 41-1092.07(G)(2), the Board has the burden of proof in this matter. The standard of proof is a preponderance of the evidence.

“A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.” A preponderance of the evidence is also, “evidence which is of greater weight or more convincing than evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.”

Ariz. Rev. Stat. § 32-741(A)(5) provides:

After notice and an opportunity for a hearing, the board may revoke or suspend any certificate granted under this chapter and may take disciplinary action concerning the holder of any certificate for any of the following causes:

* * * *

Discipline to the holder of any certificate or other authority to practice or refusal to renew the certificate or other authority to practice as a certified public accountant by any other jurisdiction or foreign country for any cause other than failure to pay license or registration fees.

* * * *

7. Ariz. Admin. Code R4-1-455.03(D) provides:

Communications: When requested, a certified public accountant or public accountant shall respond to communications from the Board within 30 days after the communication is mailed by registered or certified mail.

Respondent is deemed to have knowledge of the Board’s rules.

The Board established by a preponderance of the evidence that it mailed a disciplinary action notice to Respondent’s correct address of record on January 10, 2018, and Respondent failed to respond within thirty days of mailing, which is a violation of Ariz. Admin. Code R4-1-455.03(D).

Because Respondent violated Ariz. Admin. Code R4-1-455.03(D), the Board has authority to revoke his Certified Public Accountant Certificate under Ariz. Rev. Stat. § 32-741(A)(9).

Because Respondent violated Ariz. Admin. Code R4-1-455.03(D), the Board has authority to require reimbursement of the Board's costs of investigations and proceedings, including attorney fees, under Ariz. Rev. Stat. § 32- 701(10)(g).

RECOMMENDED ORDER

Based on the foregoing facts and conclusions of law,

it is recommended that on the effective date of the Board’s final order, the Board revoke Certified Public Accountant Certificate No. 16285-E issued to Respondent Karter P. Klumpyan.

IT IS FURTHER RECOMMENDED that on the effective date of the final order, Respondent shall be required to pay the Board’s costs and attorney’s fees incurred in prosecuting the two violations in this matter pursuant to Ariz. Rev. Stat. § 32-701(10)(g).

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 will be five days from the date of that certification.

Done this day, June 08, 2018

/s/ Jenna Clark

Administrative Law Judge

Transmitted electronically to:

Monica L. Petersen, Executive Director

Arizona State Board of Accountancy