FINACT19F-2019.022-ACY.pdf

19F-2019.022-ACY · State Board of Accountancy · 2018-11-08

BEFORE THE ARIZONA STATE BOARD OF ACCOUNTANCY In the Matter of Certified Public OAH Docket No. 19F-2019.022-ACY Accountant Certificate No. 16766-R ASBA File No. 2019.022 Issued to: JEFF HASS DECISION AND ORDER Respondent.

On November 5, 2018, this matter came before the Arizona State Board of Accountancy (“Board”) for consideration of Administrative Law Judge (“ALJ”) Kay Abramsohn’s proposed Findings of Fact, Conclusions of Law and Recommended Order (“ALJ’s Decision”). Neither Jeff Hass (“Respondent”) nor an attorney on his behalf

appeared. Assistant Attorney General Scott Donald appeared on behalf of the State. The Board received independent legal advice from Assistant Attorney General Seth Hargraves. The Board, having considered the ALJ’s Decision and the entire record in this

matter, hereby issues the following Findings of Fact, Conclusions of Law and Order (“Decision and Order”). FINDINGS OF FACT

The Findings of Fact as set forth in the ALJ’s Decision are adopted in their

entirety and incorporated herein. CONCLUSIONS OF LAW The Conclusions of Law as set forth in the ALJ’s Decision are adopted in their

entirety and incorporated herein. // // A true and correct copy of the ALJ’s Decision is attached and certain parts of it are incorporated here as set forth above. ORDER Based on the foregoing, the Board ORDERS that Respondent Certified Public Accountant Certificate No. 16766-R be REVOKED. IT IS FURTHER ORDERED that Respondent shall be required to reimburse the Board $15.02 within thirty (30) days of the effective date of this Decision and Order. This amount reflects the costs and attorney’s fees the Board incurred in prosecuting this matter.2 NOTICE OF APPEAL RIGHTS Respondent is hereby notified that they have the right to move for a rehearing or review by filing a motion with the Board’s Executive Director within thirty (30) days after service of this Decision and Order. A.R.S. § 41-1092.09. The motion must set forth legally sufficient reasons for granting a rehearing. A.A.C. R4-1-114(C). Service of this Decision and Order is effective on the date of personal service or five (5) days after the date of mailing. If a motion for rehearing is not filed, the Board’s Decision and Order becomes effective thirty (30) days after it is mailed to Respondent. Respondent is further notified that the filing of a motion for rehearing is required

to preserve any rights of appeal to the Superior Court. DATED this 7th day of November, 2018. ARIZONA STATE BOARD OF ACCOUNTANCY By: ___________________________________ Julie S. Klewer, CPA, Board President The Board voted to modify the ALJ’s Decision to include a requirement that Respondent pay reimbursement within thirty (30) days, which is consistent with the Board’s practices. Original of the foregoing Decision and Order (and attachment) th filed this 7 day of November, 2018 with: Monica L. Petersen Executive Director Arizona State Board of Accountancy th 100 N. 15 Avenue, Suite 165 Phoenix, AZ 85007 Copy of the thforegoing Decision and Order (and attachment) e-filed this 7 day of November, 2018 with: Greg Hanchett, Director Arizona Office of Administrative Hearings 1740 West Adams Street, Lower Level Phoenix, AZ 85007 Copy of the foregoing Decision and Order (and attachment) mailed via U.S. First Class Mail and Certified Mail #[account number redacted] 4577 this 7th day of November, 2018, to: Jeff Hass 2266 S. Dobson Rd., Ste. 200 Mesa, AZ 85202 Copy of the foregoing Decision and Order (and attachment) emailed this 7th day of November, 2018 to: Scott Donald Assistant Attorney General 2005 N. Central Avenue Phoenix, Arizona 85004 Seth Hargraves Assistant Attorney General Independent Advisor 2005 N. Central Avenue Phoenix, Arizona 85004 By: ___________________________________ IN THE OFFICE OF ADMINISTRATIVE HEARINGS

In the matter of No. 19F-2019.022-ACY Certified Public Accountant ADMINISTRATIVE LAW JUDGE Certificate No. 16766-R DECISION Issued to: JEFF HASS, Respondent.

HEARING: October 2, 2018. APPEARANCES: The Arizona State Board of Accountancy (“the Board”) was represented by Scott Donald, Esq., Assistant Attorney General. Jeff Hass (“Respondent”) failed to appear. ADMINISTRATIVE LAW JUDGE: Kay Abramsohn _________________________________________________________________ FINDINGS OF FACT 1. On August 16, 2018, the Board issued a Complaint and Notice of Hearing setting this matter for an evidentiary hearing at 9:00 a.m. on October 2, 2018, before the Office of Administrative Hearings (“OAH”), an independent state agency. 2. The Complaint and Notice of Hearing provided that the issue to be decided was “whether good cause exists to revoke, suspend or take any other disciplinary action against [Certified Public Accountant (“CPA”)] Certificate No. 16766-R issued to [Respondent].” 3. The Board sent the Complaint and Notice of Hearing via United States regular and certified mail to Respondent at his address of record with the Board. 4. Respondent did not request to appear telephonically at the hearing and did not request that the hearing be continued. Although the start of the duly noticed hearing was delayed to allow Respondent additional travel time to arrive, Respondent did not appear and did not contact OAH to request that the start of the hearing be further delayed. Consequently, Respondent did not present any evidence to be considered. 5. The Board presented the testimony of Christopher Rasmussen, Assistant Director of Regulation and Compliance, and submitted three exhibits. Mr. Rasmussen was familiar with this matter because he had reviewed the file in this matter.

Office of Administrative Hearings 1740 West Adams Street, Lower Level Phoenix, Arizona 85007 (602) 542-9826 6. On May 8, 2018, the Board sent Respondent, by regular and certified mail, a letter regarding having selected Respondent for continuing professional education (“CPE”) audit. 1 The letter alerted Respondent to the fact that he needed to submit a

certificate of completion for each of the reported courses within 30 days. The letter

further indicates that a failure to respond within 30 days is a violation of Arizona

Administrative Code (“A.A.C.”) R4-1-455.03(C) 2 and could result in the disciplinary

action of suspension of CPA Certificate No. 16766-R pursuant to Arizona Revised

Statutes (“A.R.S.”) § 32-741.02.

7. Mr. Rasmussen indicated that, although Respondent had reported taking

multiple continuing professional educational courses, 3 he had not, to date, provided

verification of the completion of the courses, with certificates. CONCLUSIONS OF LAW 1. The Board has personal and subject-matter jurisdiction over Respondent pursuant to A.R.S. § 32-701 et seq. and A.A.C. R4-1-101 et seq. The Board has the authority to discipline Respondent pursuant to A.R.S. § 32-741. The Board may discipline a registrant for a violation of any decision, order, or rule promulgated by the Board pursuant to A.R.S. § 32-741(A)(9). 2. The Board bears the burden of proof to establish cause to discipline Respondent by a preponderance of the evidence. 4 “A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.” 5 3. A.A.C. R4-1-455.03(D) provides that a registrant shall file a written response to a communication from the Board within 30 days of the date of the mailing of that communication.

See Exhibit 1; the signature on the certified mail receipt as having received the letter cannot be deciphered. The most current citation is (“A.A.C.”) R4-1-455.03(D). See Exhibit 3. 4 See A.R.S. § 41-1092.07(G)(2); A.A.C. R2-19-119; see also Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952). 5 MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960). 4. A.A.C. R4-1-453(F) provides that a registrant maintain for three years CPE information, including course outlines and certificates of completion. 5. A.A.C. R4-1-453(G) provides that the Board may conduct audits of a

registrant’s CPE information.

6. A.R.S. § 32-741.02(A) provides that the Board shall suspend the certificate of

a registrant who fails to provide proof of compliance with the Board’s CPE

requirements.

7. The Board established that Respondent failed to file a timely written

response as required by A.A.C. R4-1-455.03 (D) and that Respondent failed to verify

compliance with CPE requirements by providing certifications of completion as required

by A.A.C. R4-1-453(F), in violation of A.R.S. § 32-741(A)(9).

8. While A.R.S. § 32-741(A) authorizes the Board to revoke or suspend

Respondent’s certificate, A.R.S. § 32-741.02(A) provides that the Board shall suspend

the certificate of a registrant who fails to provide proof of compliance with the Board’s

CPE requirements.

RECOMMENDED ORDER Based on the foregoing, it is recommended that, on the effective date of the final order, Certified Public Accountant Certificate No. 16766-R previously issued to Respondent Jeff Hass shall be revoked and it is further recommended that Respondent be assessed fees and costs associated with the disciplinary process. 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, October 22, 2018 /s/ Kay Abramsohn Administrative Law Judge

Transmitted electronically to:

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