FINACT19F-2019.082-ACY.pdf

19F-2019.082-ACY · State Board of Accountancy · 2019-07-01

BEFORE THE ARIZONA STATE BOARD OF ACCOUNTANCY In the Matter of Certified Public OAH Docket No. 19F-2019.082-ACY Accountant Certificate No. 18576-E ASBA File No. 2019.082 Issued to: MARIA I. TELLEZ DECISION AND ORDER Respondent.

On June 25, 2019, this matter came before the Arizona State Board of Accountancy (“Board”) for consideration of Administrative Law Judge (“ALJ”) Diane Mihalsky’s proposed Findings of Fact, Conclusions of Law and Recommended Order (“ALJ’s Decision”). Neither Maria I. Tellez (“Respondent”) nor an attorney on her

behalf appeared. Assistant Attorney General Seth Hargraves appeared on behalf of the State. The Board received independent legal advice from Assistant Attorney General John Tellier. 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. // // 1 A true and correct copy of the ALJ’s Decision is attached and certain parts of it are incorporated here as set forth above. Staff notes that there is a typographical error in the ALJ’s Findings of Fact, Paragraph 6, wherein, the Certified Public Accountant Certificate No. should be listed as 18576-E not 19587-E. ORDER Based on the foregoing, the Board ORDERS that Respondent Certified Public Accountant Certificate No. 18576-E be REVOKED. IT IS FURTHER ORDERED that Respondent shall be required to reimburse the Board $3.75 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. 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 28th day of June, 2019. ARIZONA STATE BOARD OF ACCOUNTANCY By: ___________________________________ Julie S. Klewer, CPA, Board President Original of the foregoing Decision and Order (and attachment) th filed this 28 day of June, 2019 with: Monica L. Petersen Executive Director Arizona State Board of Accountancy th 100 N. 15 Avenue, Suite 165 Phoenix, AZ 85007 Copy of the foregoing th Decision and Order (and attachment) e-filed this 28 day of June, 2019 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] 4708 this 28th day of June, 2019, to: Maria I. Tellez 5718 W. Cochise Drive Glendale, AZ 85302 Copy of the foregoing Decision and Order (and attachment) emailed this 28th day of June, 2019 to: Scott Donald Assistant Attorney General [email redacted] Seth Hargraves Assistant Attorney General [email redacted] John Tellier Assistant Attorney General Independent Advisor [email redacted] By: ___________________________________ IN THE OFFICE OF ADMINISTRATIVE HEARINGS

In the Matter of No. 19F-2019.082-ACY

Certified Public Accountant ADMINISTRATIVE LAW JUDGE Certificate No. 19587-E DECISION Issued to: MARIA I. TELLEZ,

Respondent.

HEARING: May 15, 2019, at 10:00 a.m. APPEARANCES: The Arizona State Board of Accountancy (“the Board”) was represented by Scott Donald, Esq., Assistant Attorney General; Maria I Tellez (“Respondent”) failed to appear. ADMINISTRATIVE LAW JUDGE: Diane Mihalsky _____________________________________________________________________

FINDINGS OF FACT BACKGROUND AND PROCEDURE 1. The Board is the state agency authorized to regulate the practice of public accounting by certified public accountants in the State of Arizona. 2. The Board referred this matter to the Office of Administrative Hearings (“OAH”), an independent state agency, for an evidentiary hearing on its intent to revoke Respondent’s certified public accountant certificate. 3. On April 4, 2019, the Board issued a Complaint and Notice of Hearing, setting a hearing before OAH on May 15, 2015. The Board sent the Complainant and Notice of Hearing to Respondent at her address of record. 4. A hearing was held on May 15, 2015. The Board submitted three exhibits and presented the testimony of Christopher Rasmussen, its Assistant Director of Regulation and Compliance. 5. 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 fifteen minutes to allow Respondent additional travel time, she did

Office of Administrative Hearings 1740 West Adams Street, Lower Level Phoenix, Arizona 85007 (602) 542-9826 not appear, personally or through an attorney, and did not contact OAH to request that the start of the hearing be further delayed. Consequently, Respondent did not present any evidence to defend her certificate.

HEARING EVIDENCE

6. On July 10, 2017, the Board approved Respondent’s application to become

an Arizona Certified Public Accountant and issued Certified Public Accountant

Certificate No. 19587-E to Respondent.

7. On June 6, 2018, Board staff received a registration renewal form from

Respondent for the 2018 – 2020 renewal period wherein Respondent did not report any

Continuing Professional Education (“CPE”) taken. Respondent requested a CPE

extension for 40 CPE hours, even though Respondent was only required to complete

30 CPE hours. Respondent explained that she had planned to complete the CPE

during November and December 2017, but that her mother had been involved in a

serious car crash in October 2017.1 8. On July 30, 2018, Board staff sent a letter to Respondent at her address of record, informing her that the Board had considered her request for a CPE extension and approved an extension for good cause for 40 CPE hours through September 28, 2018, at 5:00 p.m.2 9. Mr. Rasmussen testified that Respondent failed to complete 40 hours of CPE before September 28, 2018, at 5:00 p.m. after receiving the requested extension of time to do so. 10. On November 16, 2018, Board staff sent another letter to Respondent at her address of record, informing her that at the Board’s November 5, 2018 meeting, it had reviewed her file and voted to offer her a Consent Order for suspension of her certificate. The letter informed Complainant that, if she did not accept the Consent Order on or before December 17, 2018, the Board would direct its attorney to file a Complaint and Notice of Hearing at OAH.3

See Exhibit A. See Exhibit B. 3 See Exhibit C. 11. The Board sent the November 16, 2018 letter to Respondent by certified mail. Respondent signed for receipt of the certified letter.4 12. Mr. Rasmussen testified that, as of the date of the hearing, the Board had

not heard from Respondent regarding her completion of the required CPE or

acceptance or rejection of the Consent Order.

13. Mr. Rasmussen testified that A.A.C. R4-1-453(C) requires registrants to

complete 80 hours of CPE by each biennial renewal of their registration. Registrants

are also required to respond to communications from the Board sent via certified mail

within 30 days if requested.

14. Mr. Rasmussen testified that Respondent’s failure to complete the required

CPE or to respond to the Board’s communications indicated that she could not be

regulated.

CONCLUSIONS OF LAW

1. The Notice of Hearing that the Board mailed to Respondent at her address of record was reasonable and she is deemed to have received notice of the hearing.5 2. The Board has jurisdiction over Respondent and the subject matter in this case.6 3. The Board bears the burden of proof to establish cause to discipline Respondent’s certificate by a preponderance of the evidence.7 “A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.”8 4. A.R.S. § 32-730(A) requires every certified public accountant to renew her registration every two years and A.R.S. § 32-730(C) requires in relevant part as follows: At the time of registration, every certified public accountant, as a prerequisite to biennial registration, shall submit to the board satisfactory proof in a manner prescribed by the board that the registrant has completed the continuing professional See Exhibit C at 4. See A.R.S. §§ 41-1092.04; 41-1092.05(D). See A.R.S. § 32-701 et seq. and A.A.C. R4-1-101 et seq. 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). 8 MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960). education requirements established by the board. The board may grant a full or partial exemption from continuing professional education requirements or an extension of time to complete the continuing professional education requirements for registrants on a demonstration of good cause. 5. A.A.C. R4-1-453(C) also provides that “[a] registrant shall complete the CPE requirements during the two-year period immediately before registration . . . .” A.A.C. R4-1-455.03(D) provides that, “[w]hen requested, a registrant shall file a written response to a communication from the Board within 30 days of the date of the mailing of such communication by certified mail.” 6. A.R.S. § 32-741(A) sets forth the grounds for the Board to suspend or revoke a registrant’s certification, including the following: 6. Violation of any of the provisions of this chapter . . . . .... 9. Violation of any decision, order or rule issued or adopted by the board. 7. The Board established that Respondent violated A.R.S. § 32-730(C) and A.A.C. R4-1-453(C) by failing to complete the Board’s CPE requirements, even after the Board granted the extension that she requested. The Board also established that Respondent violated A.A.C. R4-1-455.03(D) by failing to respond to the Board’s November 16, 2018 certified letter. RECOMMENDED ORDER Based on the foregoing, IT IS ORDERED that, on the effective date of the final order in this matter, Respondent Maria I. Tellez’s Certified Public Accountant Certificate No. 18576-E shall be revoked. IT IS FURTHER ORDERED that Respondent shall reimburse the Board for its costs for investigating and proceeding to hearing in this matter pursuant to A.R.S. § 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 shall be five (5) days from the date of the certification.

Done this day, May 30, 2019.

/s/ Diane Mihalsky Administrative Law Judge

Transmitted electronically to: Monica L. Petersen, Executive Director Arizona State Board of Accountancy