2011 Disciplinary Actions

The Board has completed the following disciplinary actions during 2011:

License and certificate suspensions (including stayed suspension) and revocations:


Beail, David, Spokane.  December 7, 2011.
Violation:  During service as a trustee, Beail removed certain funds from the client’s trust.  Following the death of another client, Beail was placed in charge of the widow’s brokerage account.  Beal utilized assets which remained the property of his client.
Sanctions: Stayed suspension of Beail’s CPA certificate, individual license to practice public accounting and eligibility to register for a CPA firm license for three years.  The stay of the suspension is conditioned on Beail’s agreement to permit the Board to have unrestricted access to any and all of Beail’s professional files, papers, and materials; not serve as trustee of any trusts, not provide any professional services that include having or maintain access to client brokerage accounts; pay a $2,500 fine, and reimburse the Board $7,500 for investigative and legal costs.
Board Order.

Stoller, Shawn E. and Stoller and Company, Bellevue. November 19, 2011.
Violation:  On July 2, 2009, the Securities Division of the state of Washington Department of Financial Institutions (DFI) issued a Summary Order against Shawn E. Stoller and FA Monitors, an investment adviser company solely owned by Stoller. The Summary Order tentatively found that Stoller engaged in dishonest or unethical practices when he obtained control of funds from his elderly clients for the purposes of making a three-year business investment on their behalf, and instead of making the investment, converted a portion of the funds for his personal use.   DFI summarily suspended Stoller’s investment adviser and investment adviser representative registrations.  Without admitting or denying the allegation Stoller entered into a Consent Order with DFI on August 4, 2010.  Stoller agreed to cease violation of the Securities Act and surrender his investment adviser representative license.  On September 30, 2011, Stoller filed a Statement of Defendant on Plea of Guilty in King County Superior Court. Stoller pled guilty to the crime of attempted obtaining a signature by deception or duress.
Sanctions: Stoller’s CPA certificate and individual practice license were revoked.  Prior to and as a condition for reinstatement Stoller must: (a) serve at least three years of the revocation; (b) comply with the then existing education, examination, experience, and ethical eligibility requirements; (c) pay a $5,000 fine; and (d) reimburse the Board $2,500 for investigative and legal costs.  Stoller may not use the CPA title or hold out for the practice of public accounting as a CPA while under revocation.  Stoller must relinquish all ownership in his CPA firm and remove his name from the firm name.
Board Order.

Fisher, Susan of Susan Fisher, PLLC, Friday Harbor.  November 17, 2011.
Violation: 
Failure to respond to inclusion of the firm in the Board’s 2011 Quality Assurance Review (QAR) program.
Sanctions: Stayed suspension of Fisher’s CPA certificate, individual license to practice public accounting and CPA firm license.  The stay of the suspension is conditioned on Fisher’s agreement to restrict practice to non-attest services and refrain from issuing audit, review, compilation or other reports prescribed by professional standards on financial statements, payment of a $1,500 fine, and reimbursement of $250 to the Board for investigative and legal costs.  The CPA and CPA firm must obtain written permission from the Board before the Board will lift the practice restriction.
Board Order.

McSwain, Charles A. and McSwain & Company, PS., Olympia. October 13, 2011.
Violation:  McSwain offered and sold at least $1,378,688 in investments to a least 17 Washington resident to fund and operate Billie’s Casino in Renton, Washington. McSwain was the largest single investor in the casino enterprise. Billie’s Casino went out of business in 2005 and ten investors sued McSwain and McSwain and Company, PS for their lost investment. McSwain and Company, PS entered into a settlement agreement with the ten investors for $700,000. McSwain entered into a consent order with the Securities Division of the State of Washington Department of Financial Institutions (DFI). DFI alleged McSwain offered and sold unregistered securities and acted as an unregistered salesperson even though McSwain relied on the services of a securities attorney. Without admitting or denying DFI’s findings, McSwain agreed to cease violation of the Securities Act and pay a $5,000 fine.
Sanctions: (1) McSwain and Company, PS agreed to comply with the order of the Board and pay a $1,000 fine to the Board and reimburse the Board $250 for investigation and legal costs. (2) McSwain’s CPA certificate individual practice license is suspended but stayed (not actually imposed) for three years. The stay of the suspension is conditioned upon McSwain’s (a) payment of $5,000 fine; (b) payment of $2,750 to reimburse the Board for investigative and legal costs; (c) completion of four hours of continuing profession education in Board approve ethics and regulation with specific application to the practice of public accounting in Washington State; (d) fulfillment of the settlement agreement with ten investors; (e) comply with the DFI consent order; (f) compliance with the provisions of the Securities Act of Washington; and (g) compliance with all the provisions of the Public Accountancy Act or Board rules.
Board Order.

Darling, Corey V., Anacortes. September 27, 2011.
Violation:  Darling failed to remain free of conflicts of interest when he borrowed $100,000 from a client. The loan was secured by a promissory note and collateralized by real estate property. Subsequently, Darling secured the client’s promissory note with a deed of trust on another real estate property that was burdened with deeds of trust that exceeded the value of the property. Darling defaulted on the loan. The loan was later dismissed in bankruptcy. Darling also had an office in this state and used the title “C.P.A.” in his firm name without benefit of a valid CPA firm license or office registration. The Washington State Department of Financial Institutions Securities Division (DFI) entered a Statement of Charges against Darling in April 2011. DFI alleged Darling engaged in dishonest and unethical practices while working as a securities salesperson and investment adviser representative in violation of the Securities Act of Washington. DFI alleged, in part, that Darling offered and sold unregistered securities, sold a promissory note to a securities customer, borrowed money from at least two securities brokerage customers, and failed to disclose information to customers. Darling entered into a Consent Order with DFI in May 2011.
Sanctions: Darling agreed to the revocation of his CPA certificate and eligibility to renew or reinstate his individual or firm licenses to practice public accounting for six years. Before the Board will consider a reinstatement application Darling must 1) serve at least three years of the revocation; (2) pay a $10,000 fine; (3) reimburse Board $1,500 for investigative and legal costs, and (4) document repayment of the monies borrowed from Darling’s former client. Darling may not use the CPA title or hold out for the practice of public accounting as a CPA while under revocation. Board Order.
Board Order.

Glick, Harvey R., Scarsdale, NY. August 30, 2011.
Violation:  The Texas State Board of Public Accountancy on March 26, 2009, adopted an Agreed Consent Order accepting Glick’s offer of involuntary surrender of his firm license for revocation and payment of $5,000 administrative penalties and $398.04 in administrative costs. The Texas Board found Glick forged temporary practice permits. Glick prepared a financial statement audit and management attestation audit of U.S. Department of Education Title IV funds for a client in Washington State. Glick did not hold a valid CPA firm license in Washington State as required.
Sanctions: Glick agreed to the suspension of his license to practice public accounting for ten years and to reimburse the Board $750 for investigative and legal costs. Before the Board will consider a reinstatement application, Glick must (1) serve at least three years of the suspension; (2) submit a complete reinstatement application with required fee and continuing professional education (CPE); and (3) pay a $3,000 fine. Glick may not use the CPA title or hold out for the practice of public accounting as a CPA while under suspension.
Board Order.

Elshamma, Osama, Seattle. July 18, 2011.
Violation:  Used the designation certified public accountant(s) as a firm with a office in this state without benefit of a valid CPA firm license or office registration; Used the designation “C.P.A.” without benefit of a valid individual CPA license; Borrowed money from a client’s contract bookkeeper.
Sanctions: Stayed suspension of Elshamma’s CPA certificate, reinstated individual practice license, and CPA firm license for three years. The stay of the suspension is conditioned on Elshamma’s payment of a $4,000 fine; reimbursement to the Board of $1,750 for investigative and legal costs; inclusion in the Board’s 2013 continuing professional education audit; payment of $400 QAR fee and $100 QAR late fee; repayment of loan to former client’s contract bookkeeper; documentation to confirm resolution either by payment, settlement or vacation of the small claims judgment order in King County District Court totaling $4,535 payment to Elshamma’s former client; documentation of the enhancement of Elshamma’s technical resource library; and preissue evaluation of every report on annual financial statements for one year at Elshamma’s expense. The Board incorporated the Findings of Fact and Conclusions of Law of the Board’s April 21, 2011, order ACB-898 and incorporated and restated the Final Order of the Board’s April 21, 2011, order ACB-898 into this Board Order.

Update:  Elshamma failed to meet the terms of the Agreed Order; Agency vacated the stay and imposed original suspension of Elshamma’s CPA certificate and practice licenses effective January 23, 2013.

Cornwell, Richard C., Highwood, MT.  July 14, 2011.
Violation:  Cornwell failed to provide the Board with documents supporting completion of the Continuing Professional Education (CPE) required for renewal and failed to respond to Board inquiry.
Sanctions: Suspension of CPA certificate and individual practice license for five years. Before the Board will consider a reinstatement application, Cornwell must (1) serve all five years of the suspension; (2) submit a complete reinstatement application with required fee and CPE; (3) pay a $3,540 fine; and (4) reimburse Board $1,000 for investigative and legal costs. Cornwell may not use the CPA title or hold out for the practice of public accounting as a CPA while under suspension.
Board Order.

Anderson, John F. of Anderson Accountancy Corporation, Lynnwood.  June 24, 2011.
Violation:  Anderson failed to comply with a prior Board order restricting him and his firm from providing attest services and compilation reports on financial statements with the exception of management-use only compilations meeting the standards established under SSARS # 8 when his firm issued a compilation report on financial statements.  That compiled financial statement report was not in compliance with the applicable professional standards.
Sanctions: Stayed suspension of Anderson’s CPA certificate, individual license to practice public accounting and CPA firm license for five years.  The stay of the suspension is conditioned on Anderson’s agreement to refrain from providing attest services including issuing auditors’ reports on financial statements or accountants’ review reports and refrain from providing compilation reports on financial statements, payment of a $3,000 fine, and reimbursement to the Board of $1,000 for investigative and legal costs.  The practice restriction is permanent.
Board Order.

Smith, Julie DiAnn, Tieton. May 20, 2011.
Violation:  Smith in her capacity as Chief Financial Officer of Yakima Heart Center, Inc. PS converted $59,277.25 to her personal account.  Smith repaid the $59,277.25 plus interest to her former employer.
Sanctions: Revocation of Smith’s CPA certificate and individual license to practice public accounting for ten years. Before the Board will consider an application for the reissuance of a CPA certificate or license, Smith must (1) serve ten years of the revocation; and (2) comply with the then existing education, examination, experience, and ethical eligibility requirements.
Board Order.

Barr, Barbara, Ferndale. May 5, 2011.
Violation:  Barr used the CPA title on her resume when seeking employment and represented to a prospective employer in a cover letter that she was a CPA and on the employment application that Barr held a CPA license..  Barr’s CPA certificate lapsed June 30, 1991.
Sanctions:  Stayed suspension of Barr’s CPA certificate and eligibility to renew or reinstate the certificate or apply for an individual license to practice public accounting.  The stay of the suspension is conditioned on Barr’s agreement to not use the designation “CPA” or “CPA-Inactive,” payment of a $500 fine, and reimbursement to the Board of $150 for investigative and legal costs.
Board Order.

Ao, Weng Hong, Macau. April 25, 2011.
Violation: Failure to provide the Board with documents supporting completion of the Continuing Professional Education (CPE) required for renewal and failure to respond to Board inquiry.
Sanctions: Suspension of CPA certificate and individual and firm practice licenses for ten years.  Before the Board will consider a reinstatement application, Ao must (1) submit a complete reinstatement application with required fee and CPE; (2) fully respond to Board inquiries; (3) pay a $1,500 fine; and (4) reimburse Board $1,000 for investigative and legal costs.  Ao may not use the CPA title or hold out for the practice of public accounting as a CPA while under suspension. 
Board Order.

Mullen, Richard, Mountlake Terrace. April 25, 2011.
Violation: Failure to comply with prior Board order requiring preissue evaluation of reports on financial statements; Compiled financial statement report not in compliance with the applicable professional standards; and Failure to reply to Board inquiries.
Sanctions: Suspension of CPA certificate and individual and firm practice licenses for ten years.  Before the Board will consider a reinstatement application, Mullen must (1) submit a complete reinstatement application with required fee and CPE; (2) fully respond to Board inquiries; (3) pay a $1,500 fine; and (4) reimburse Board $1,000 for investigative and legal costs.  Mullen may not use the CPA title or hold out for the practice of public accounting as a CPA while under suspension.
Board Order.

Elshamma, Osama, Seattle. April 21, 2011.
Violation: Financial statement reports submitted for the Board’s Quality Assurance Review in 2004 were not in compliance with the applicable professional standards; Used the designation certified public accountant(s) as a firm with a office in this state without benefit of a valid CPA firm license or office registration; Issued audited reports on financial statements during March and April 2008 without benefit of a valid CPA firm license – The reports were not in compliance with the applicable professional standards.
Sanctions:Stayed suspension of Elshamma’s CPA certificate and individual practice license.  The stay of the suspension is conditioned on Elshamma’s payment of a $1,000 fine, reimbursement to the Board of $1,500 for investigative and legal costs, inclusion in the Board’s continuing professional education audit in the year following the end of his current renewal cycle, payment of QAR fees of $400 and QAR late fee of $100; and either (A) obtainment of a CPA firm license before providing or offering to provide attest services or issuing audit, review, compilation or other reports prescribed by professional standards on financial statements; documentation of the enhancement of Elshamma’s technical resource library, and preissue evaluation of every report on annual financial statements for one year at Elshamma’s expense, or (B) limit professional services to non-attest services and refrain from issuing audit, review, compilation or other reports prescribed by professional standards on financial statements or other information in Washington State.  Elshamma has 30 days to elect option (A) or (B).  If the Board does not receive Elshamma’s election within 30 days the Board will enforce alternative (A).
Board Order.

Austen, David, Vancouver. April 20, 2011.
Violation: Outsourced clients records to an offshore firm without client’s knowledge or approval; Failed to completed engagement; Provided the confidential records of one client to another client with the client’s permission; Failed to return client records.
Sanctions:  Stayed suspension of Austen’s CPA certificate and individual and firm practice licenses.  The stay of the suspension is conditioned on Austen’s payment of $2,945 restitution to his former client, payment of a $2,500 fine, and reimbursement to the Board of $450 for investigative and legal costs.
Board Order.

Smerdon, G. Scott, Longview. March 1, 2011.
Violation: Held out for the practice of public accounting and provided attest and compilation services without benefit of valid individual and firm practice licenses.
Sanctions: Suspension of CPA certificate and eligibility to renew or reinstate any individual or firm practice license for five years; Smerdon agreed to pay a $1,000 fine, reimburse the Board $250 for investigative and legal costs, complete a Board approved course in ethics and regulation applicable to the practice of public accounting in Washington State, and notify each client for whom Smerdon provided attest or compilation services in writing that Smerdon performed the work without the benefit valid practice licenses.  Smerdon may not use the CPA title while under suspension. 
Board Order.

Foster, Cortney and Foster & Company, PS, Vashon February 4, 2011.
Violation: Failure to respond to inclusion of the firm in the Board’s 2010 Quality Assurance Review (QAR) program.
Sanctions: Stayed suspension of Cortney Foster’s CPA certificate, individual license to practice public accounting and the CPA firm license of Foster & Company, PS.  The stay of the suspension is conditioned on the CPA firm’s payment of a $1,500 fine, reimbursement to the Board for $250 for investigative and legal costs, and submission to an on-site field review or peer review at the firm’s expense.
Board Order.

Long, Eric; Bellevue. January 22, 2011.
Violation: Quality Assurance Review referral – technical deficiencies; Failure to complete an audit engagement with professional competence.
Sanctions: Stayed suspension of Long’s CPA certificate and individual and firm licenses to practice public accounting.  The stay of the suspension is conditioned on Long’s compliance with the Stipulation and Agreed Order including payment of a $1,000 fine, reimbursement to the Board for $500 for investigative and legal costs, completion of specific continuing professional education, and preissue evaluation at Long’s expense of every report Long plans to issue on annual financial statements (audit, review, or compilation) along with the accompanying financial statements and work papers until the Board is satisfied Long’s financial statement reporting is in substantial compliance with professional standards.
Board Order.

Pierman, Henry, Mercer Island, January 22, 2011.
Violation: Holding out as a certified public accountant in a firm name without the benefit of a firm license.
Sanctions: Suspension of CPA certificate and eligibility to renew or reinstate a license to practice public accounting; Before the Board will consider a reinstatement application, Pierman must make complete application for reinstatement;  pay a $750 fine; and reimburse Board $250 for investigative and legal costs.  Pierman may not use the CPA title while under suspension.
Board Order.

Update: March 29, 2011; CPA license reinstated.

Thoelke, Jeffrey, Tukwila. January 11, 2011.
Violation: Misrepresentation in filing an application for renewal of CPA license; Failure to complete and document Continuing Professional Education (CPE) required for renewal.
Sanctions: Suspension of CPA license for three years; Before the Board will consider a reinstatement application, Thoelke must (1) serve at least one year of the suspension; (2) pay a $920 fine; and (3) reimburse Board $500 for investigative and legal costs.  Thoelke may not use the CPA title while under suspension. 
Board Order.

Stegman Wallace, P.S., Marc Wallace, Daniel Stegman; Bellevue. January 11, 2011.
Violation: Failure to respond to inclusion of the CPA firm in the Board’s 2010 Quality Assurance Review (QAR) program.
Sanctions: Stayed suspension of CPA firm owners’ CPA certificates and individual and firm licenses to practice public accounting.  The stay of the suspension is conditioned on the firm’s compliance with the Stipulation and Agreed Order including payment of a $1,500 fine, reimbursement to the Board for $250 for investigative and legal costs, and the CPAs and CPA firm’s agreement to limit professional services in Washington State to non-attest services and refrain from issuing audit, review, compilation or other reports prescribed by professional standards on financial statements.  The CPAs and CPA firm must obtain written permission from the Board before the Board will lift the restriction. 
Board Order.