ALJDEC decisions subject to certification as final
20A-2021.022-ACY · State Board of Accountancy · 2020-10-19
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
In the Matter of:
Certified Public Accountant
Certificate No. 186-C
Issued to: EDWARD J. JEFFREY, CPA, P.C.
Respondent.
No. 20A-2021.022-ACY
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: October 14, 2020
APPEARANCES: Assistant Attorney General Scott Donald appeared on behalf of the Arizona State Board of Accountancy via Google Meet. Respondent did not appear.
ADMINISTRATIVE LAW JUDGE: Adam D. Stone
_____________________________________________________________________
FINDINGS OF FACT
On or about January 29, 2018, Edward J. Jeffrey, CPA, P.C. submitted its firm renewal form for the time period of January 31, 2018 through January 31, 2020. Edward J. Jeffrey (Jeffrey) was the sole owner and CPA for Respondent and was listed as the Person in Charge.
On or about May 20, 2020, the Arizona State Board of Accountancy (Board) revoked Jeffrey’s Certificate number 9055-E.
Respondent did not presently have an owner who was a CPA in good standing.
On August 27, 2020, the Board issued a Complaint and Notice of Hearing alleging that Respondent violated Board rules and advising the parties of the time, date, and location of an evidentiary hearing in the matter before the Office of Administrative Hearings, an independent agency. The Complaint and Notice of Hearing was sent to Respondent at its address of record with the Board.
A hearing was held at the Office of Administrative Hearings on October 14, 2020.
The commencement of the scheduled hearing was delayed approximately 15 minutes to allow for the late arrival of a representative for Respondent. After the delay, the Administrative Law Judge conducted the hearing in Respondent’s absence.
At hearing, the Board presented the testimony of Christopher Rasmussen,
Assistant Director of Compliance Issues for the Board, and submitted exhibits 1 and 2.
CONCLUSIONS OF LAW
The Board has personal and subject matter jurisdiction over Respondent pursuant to Ariz. Rev. Stat section 32-701 et seq. and A.A.C. R4-1-101 et seq.
The Board has the authority to discipline Respondent pursuant to Ariz. Rev. Stat. section 32-742.
Pursuant to Ariz. Rev. Stat. section 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. A.A.C. R2-19-119(A).
Ariz. Rev. Stat. section 32-741(A)(1)(a) states that, “. . . 1. A business organization that meets all of the following criteria: (a) Has a simple majority of the ownership, in terms of direct and indirect financial interests and voting rights, that belongs to holders in good standing of certificates or licenses as certified public accountants in any jurisdiction.” (Emphasis added)
Under Ariz. Rev. Stat. section 32-742(A)(1), the board may revoke or suspend any firm’s registration, due to “[t]he relinquishment, revocation or suspension of any certificate issued by the board to any owner of the firm” after notice and an opportunity for a hearing.
The Board established by a preponderance of the evidence that Mr. Jeffrey’s license was revoked on or about May 20, 2020.
7. The Board established by a preponderance of the evidence that because Mr. Jeffrey’s license was revoked, it therefore left Respondent without an owner in good standing.
8. Because Respondent violated Ariz. Rev. Stat. section 32-742(A), the Board has authority to revoke Respondent’s registration to practice public accounting.
9. Considering the facts and circumstances of this matter, it is recommended that Respondent’s Accounting’s certificate No. 186-C be revoked.
RECOMMENDED ORDER
Based on the foregoing, it is recommended that on the effective date of the Board’s final order, the Board revoke Certified Public Account Certificate No. 186-C issued to Edward J. Jeffrey, CPA, P.C.
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.
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-137160-45720000Done this day, October 19, 2020.
/s/ Adam D. Stone
Administrative Law Judge
Transmitted electronically to:
Monica L. Petersen, Executive Director
Arizona State Board of Accountancy
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