ALJDEC decisions subject to certification as final

20A-2020.004-ACY · State Board of Accountancy · 2021-01-27

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

In the Matter of:

Certified Public Accountant

Certificate No. 16188-R

Issued to: Kelly D. Gottschalk,

Respondent.

No. 20A-2020.004-ACY

ADMINISTRATIVE LAW JUDGE

DECISION

HEARING: January 21, 2021

APPEARANCES: No one appeared for Kelly D. Gottschalk; Scott Donald, Esq. for the State Board of Accountancy

ADMINISTRATIVE LAW JUDGE: Thomas Shedden

FINDINGS OF FACT

The Arizona State Board of Accountancy (“Board”) is the authority for regulating Certified Public Accountants in the State of Arizona.

On December 3, 2020, the Board issued a Complaint and Notice of Hearing setting this matter for hearing at 10:00 a.m. January 21, 2021 at the Office of Administrative Hearings in Phoenix Arizona.

The issue for hearing is whether good cause exists for the Board to revoke, suspend, or take other disciplinary action against Certificate No. 16188-R issued by the Board to Kelly D. Gottschalk (“Respondent”).

No one appeared for Respondent at the scheduled hearing time and the matter was convened in her absence at about 10:15 a.m.

The Board presented the testimony of Christopher Rasmussen, its Assistant Director of Regulation and Compliance.

The Board received notice from the National State Boards of Accountancy Licensing Database that Respondent’s CPA license was suspended in the State of Texas.

The Board reviewed the Texas State Board of Public Accountancy’s Order suspending Respondent’s Texas CPA license and found it appropriate to offer Respondent an opportunity to settle the matter through a Decision and Order by Consent (“Consent Order”).

On September 2, 2020, the Board sent to Respondent at her address of record the proposed Consent Order and a letter advising Respondent that she could accept or reject the offer, but in either case she was required to respond within thirty days of the date of the letter. The cover letter further advised Respondent that a failure to file a timely response might be considered a violation of Ariz. Admin. Code section R4-1-455.03(D) and might constitute grounds for disciplinary action against her certificate under Ariz. Rev. Stat. section 32-741(A)(9).

The Board’s September 2, 2020 letter and Consent Order were sent by certified and regular mail to Respondent’s address of record.

The Board received from the Postal Service the signed Certified Mail receipt showing it had been delivered on September 10, 2020.

Respondent did not file with the Board any response accepting or rejecting the proposed Consent Order.

At the hearing, the Board requested that Respondent’s license be revoked and that Respondent be assessed the cost of the Board’s investigation in this matter.

CONCLUSIONS OF LAW

The Board bears the burden of persuasion. Ariz. Rev. Stat. § 41-1092.07(G)(2) and (G)(3).

The standard of proof on all issues in this matter is that of the preponderance of the evidence. Ariz. Admin. Code § R2-19-119.

A preponderance of the evidence is:

The greater weight of the evidence, not necessarily established by the greater number of witnesses testifying to a fact but by evidence that has the most convincing force; superior evidentiary weight that, though not sufficient to free the mind wholly from all reasonable doubt, is still sufficient to incline a fair and impartial mind to one side of the issue rather than the other.

Black’s Law Dictionary 1373 (10th ed. 2014).

Respondent failed to respond to the Board’s September 2, 2020 letter, which is a violation of Ariz. Admin. Code section R4-1-455.03(D), and is a basis on which the Board may impose discipline against Respondent’s certificate. Ariz. Rev. Stat. § 32-741(A)(9).

Considering the facts and circumstances of this matter, and particularly Respondent’s failure to appear at the hearing, Certificate No 16188-R issued to Respondent Kelly D. Gottschalk should be revoked and Respondent should be ordered to reimburse the Board for the costs it incurred during the investigation and proceedings in this matter. See Ariz. Rev. Stat. § 32-701(12)(g)(defining disciplinary action).

RECOMMENDED ORDER

IT IS ORDERED that Certificate No. 16188-R issued to Kelly D. Gottschalk is revoked;

IT IS FURTHER ORDERED that Kelly D. Gottschalk must reimburse the Board for the costs it incurred during the investigation and proceedings in this matter.

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 after the date of that certification.

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-137160-45720000Done this day, January 27, 2021.

/s/ Thomas Shedden

Thomas Shedden

Administrative Law Judge

Transmitted electronically to:

Monica L. Petersen, Executive Director

Arizona State Board of Accountancy

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