Revocation of CPA Certificate, via stipulated settlement.

Effective March 1, 2003

For purposes of settlement, Mr. Pado admits that on or about May 15, 2002, he pleaded guilty to the felony of conspiracy to commit securities fraud and that the resulting conviction was substantially related to the functions, practices, and duties of a Certified Public Accountant.

Business and Professions Code, Division 3, Chapter 1, § 5100 (a) and (c).

Revocation stayed, with three years' probation, via stipulated settlement.

Mr. Palbaum's license is suspended for 180 days.

Mr. Palbaum is required to maintain an active license status, including during his period of suspension.

Other standard terms and conditions.

Effective April 1, 2005

Also See:

Carroll, Roland William, Jr.

Hori, David Akio

Janeski, Kenneth B.

KPMG LLP

Wong, John Ming

As charged in Board Case No. AC-2005-14, Mr. Palbaum was sanctioned by the SEC, an action subjecting Mr. Palbaum's CPA license to discipline. The SEC entered the decision and order on October 20, 2004.

Without admitting or denying the findings in the SEC order, Mr. Palbaum consented to entry of an SEC order that denied him the privilege of appearing or practicing before the SEC as an accountant for three years, effective October 20, 2004, after which he may request that the SEC consider his reinstatement.

KPMG LLP was the auditor for Gemstar-TV Guide International, Inc. from 1993 until October 30, 2002, when Gemstar dismissed KPMG as its independent accountants. Mr. Palbaum was one of two KPMG co-engagement partners for the Gemstar engagement from the June 30, 2000, review through the March 31, 2002, review.

The SEC order included findings that Mr. Palbaum engaged in improper professional conduct during the KPMG engagement for audits and reviews of Gemstar financial statements. Mr. Palbaum's conduct resulted in violations of professional standards in that he failed to require Gemstar to comply with GAAP, failed to comply with GAAS during the audits and reviews of Gemstar's financial statements, and unreasonably relied on representations by Gemstar's management and legal counsel or decided that unsupported revenues were immaterial.

The Board's discipline is based upon Mr. Palbaum's consent to the SEC's Order imposing remedial sanctions.

Business and Professions Code, Division 3, Chapter 1, §§ 5062 and 5100 (g), (h), and (l). California Code of Regulations, Title 16,§ 58.

Related Documents:

KPMG Action

Revocation of CPA Certificate, via proposed decision.

Effective May 1, 1998

While on probation, Respondent violated the terms of his probation in that he failed to obey all federal, state, and local laws, including all published rules, relating to the practice of public accountancy in California; file timely quarterly reports; and conduct all of his engagements in the state of California in accordance with applicable professional standards and Board Regulations.

Business and Professions Code, Division 3, Chapter 1, §§ 5050, 5055, 5100 (f) and (i). California Code of Regulations, Title 16, Division 1, §§ 66, 87, and 89.

Three years probation. Probation terms include perform 100 hours of community service as approved by the Administrative Committee; complete specified professional education; resign from engagements presenting a conflict of interest or potential conflict of interest; on a quarterly basis, submit written reports to the Board; and other standard terms of probation.

Effective July 29, 1994

For purposes of settlement, Respondent neither affirms nor denies that, as a partner of Parks, Palmer, Turner & Yemenidjian, the financial forecasts of a certain company were prepared in a grossly negligent manner.

Business and Professions Code, Division 3, Chapter 1, § 5100 (c).

180 days' suspension stayed, two years' probation via Decision after Nonadoption.

Note: Mr. Parker has appealed the Board's Decision after Nonadoption via Petition for Writ of Mandate.

Probation terms include: 40 hours of continuing education as directed by the Board. This requirement shall be in addition to continuing education hours required for license renewal.

Prior to participation in any government agency audit in California, respondent shall further be required to complete 40 hours of continuing education in the areas of government accounting and auditing and at least eight hours of continuing education in the area of professional ethics.

100 hours of community service in Orange County.

Other standard terms and conditions.

Effective August 24, 2002

Also See:

Freedman, Eric Lewis

KPMG LLP

McBride, Margaret Jean

Timon, Bradley Jay

In the performance of the audit of the 1992 financial statements of Orange County, Mr. Parker is subject to discipline for failure to exercise due professional care and for gross negligence in committing extreme departures from generally accepted auditing standards (GAAS) and generally accepted government auditing standards (GAGAS).

Mr. Parker failed to properly plan and supervise staff auditors in the engagement, accepted management's assertions without corroboration, and failed to maintain the proper level of professional skepticism regarding management representations.

Business and Professions Code, Division 3, Chapter 1, §§ 5062, 5100, and 5100 (c) and (f).

Revocation of CPA Certificate, via stipulated decision.

Effective June 23, 2001

Respondent admits that while employed for a Company in private industry as a chief financial officer, he took checks that were mailed to the company for such items as rebates or closed bank accounts. He endorsed the backs of the checks with false names and then opened accounts using false names. Respondent defrauded the company of approximately $161,000.

Respondent was subsequently convicted on April 24, 2000, of fraud and theft through the use of the mail.

Respondent did not report his conviction to the California Board of Accountancy within 30 days of the conviction.

Business and Professions Code, Division 3, Chapter 1, §§ 5063 and 5100 (a), (c), (f), (h), and (j).

Revocation of CPA Certificate, via stipulated settlement.

Effective March 4, 1999

Respondent was convicted by the court on his plea of no contest in the Tulare County Municipal Court District of one felony count of violating Penal Code § 487 (a) grand theft by embezzlement, and ten felony counts of violating Penal Code § 475 (a), possessing completed checks with intent to defraud. These offenses are substantially related to the practice of public accountancy.

Business and Professions Code, Division 3, Chapter 1, § 5100 (a).

Revocation of CPA Certificate, via default decision.

Effective September 23, 1998

Respondent was engaged and was paid $5,900 to perform an annual audit for a corporate client; however, she never issued a final audit report.
Respondent also failed to cooperate with the ensuing auditor, causing the corporate client to incur additional fees of $8,015.

Respondent borrowed $6,000 from a tax client, but she repaid the loan with checks that could not be honored due to insufficiency of funds in her account. Additionally, during a period when her CPA license was expired, Respondent conducted the practice of public accountancy using a fictitious name that she had not requested nor received Board approval to use.

Business and Professions Code, Division 3, Chapter 1, §§ 5050, 5055, 5100(f) and (h). California Code of Regulations, Title 16, Division 1, §§ 66 and 67.

Revocation stayed, with three years' probation, via stipulated settlement.

Mr. Pejsa shall take and pass with a score of 90 percent or better an eight-hour Board approved ethics course within 180 days from the effective date of the decision.

Mr. Pejsa is required to reimburse the Board $2,694.59 for its investigation and prosecution costs.

Other standard terms and conditions.

Effective October 14, 2004

Mr. Pejsa admits the truth of each and every charge and allegation in Accusation No. AC-2004-14.

Mr. Pejsa was convicted on a plea of guilty of petty theft with a prior - a misdemeanor. The circumstances surrounding the conviction are that on or about June 1, 2002, Mr. Pejsa did unlawfully steal, take, and carry away personal property of Nordstrom's.

Business and Professions Code, Division 1.5, Chapter 3, § 490, and Division 3, Chapter 1, § 5100 (a) and (k). California Code of Regulations, Title 16, Division 1, § 99.

Revocation of CPA Certificate, via default decision.

Effective April 1, 2004

Between April 18, 2003, and May 20, 2003, Ms. Pekrul, while employed as a financial controller for a Nevada company, forged checks to herself and another individual. Ms. Pekrul cashed an amount exceeding $250,000 for her own personal use without the authorization from the company.

On or about July 30, 2003, Ms. Pekrul was convicted in the District Court, Clark County, Nevada.

Between September 18, 2002, to on or about January 16, 2003, Ms. Pekrul, while employed as a part-time bookkeeper for a Nevada law firm, embezzled an amount in excess of $35,000. Ms. Pekrul forged her employer's signature on checks from the firm's general and trust bank accounts and misused the firm's Office Depot account for personal purchases.

On or about July 23, 2003, Ms. Pekrul was convicted in the District Court, Clark County, Nevada.

Between February 1, 2001, and October 31, 2001, while employed as a controller for a Nevada Company, Ms. Pekrul forged checks written to herself from the company's payroll account. Ms. Pekrul also misused the company's credit card by making unauthorized purchases. Ms. Pekrul embezzled an amount of approximately $58, 884.74.

On or about January 6, 2003, Ms. Pekrul was convicted in the District Court, Clark County, Nevada.

Ms. Pekrul failed to report the convictions to the Board as required.

Business and Professions Code, Division 1.5, Chapter 3, § 490, and Division 3, Chapter 1, §§ 5063, and 5100 (c) and (g). California Code of Regulations, Title 16, Division 1, § 58.

Revocation of CPA Certificate, via default decision.

Effective January 6, 1999

Mr. Pendleton was responsible for a client's trust account and was to pay all of the client's expenses from that account. Respondent embezzled $84,450 from this client's trust account and failed to pay the client's mortgage and property taxes totaling $31,620. In addition, Respondent provided the client with false cash flow statements.

Furthermore, Mr. Pendleton practiced public accountancy and used the title of CPA during a period in which his license was expired and failed to notify the Board of Accountancy in writing of his change of address.

Business and Professions Code, Division 3, Chapter 1, §§ 5050, 5055, 5100 (a), (h), (i), and (j). California Code of Regulations, Title 16, Division 1, § 3.

Revocation stayed with three years' probation, via decision after Non-Adoption of Proposed Decision.

Ms. Hedges' license is suspended for 180 days.

Ms. Hedges is required to reimburse the Board $6,000 for its investigation and prosecution costs.

Other standard terms of probation.

Effective April 29, 2007

Also See:

Hedges, Mary Jane

Ms. Hedges engaged in the practice of public accountancy with an expired license during the period from May 1, 2003, through August 18, 2004.

Ms. Hedges failed to complete at least 80 hours of qualifying continuing education prior to the expiration of her CPA license on May 1, 2003, and May 1, 2005, and willfully violated the accountancy laws.

Business and Professions Code, Division 3, Chapter 1, §§ 5050 and 5100 (g). California Code of Regulations, Title 16, Division 1, §§ 87 and 94.

Revocation stayed, with three years' probation, via stipulated settlement.

Mr. Planer shall at all times maintain an active license status with the Board, including during any period of suspension.

Mr. Planer is required to reimburse the Board $6,483 for its investigation and prosecution costs.

Other standard terms and conditions.

Effective December 22, 2004

For purposes of settlement, Mr. Planer admits he is subject to discipline on the grounds of unprofessional conduct in that on his 1999 renewal application he requested renewal in active status, but he failed to obtain, and/or demonstrate that he had obtained the required hours of continuing education.

Mr. Planer is further subject to discipline on the grounds that following expiration of his public accountant certificate on May 31, 2001, he prepared income tax returns for a client during April 2003 without being registered as a tax preparer with the California Tax Education Council or qualifying for any of the exemptions.

Business and Professions Code, Division 3, Chapter 1, §§ 5100 (g), Division 7, Chapter 14, §§ 22253 (a)(1), and 22258. California Code of Regulations, Title 16, Division 1, §§ 87 and 87.7.

License revoked.

Effective November 17, 1993

During 1985, Respondent prepared two sets of 1983 and 1984 tax returns for one client. The second set of tax returns was not filed with the IRS but was specifically prepared to aid the client to qualify for a loan.

Business and Professions Code, Division 3, Chapter 1, § 5100 (c) and (h).

Revocation of CPA certificate.

Effective September 7, 1996

Respondent performed an audit of American Capital Holding Corporation and its subsidiary, Union Pacific Fire and Marine Insurance Company, Ltd. (an offshore company). The assets of both companies were grossly overstated in regard to the recording of marketable securities. The offshore insurance company sold insurance to California consumers until June 10, 1991, when the California Department of Insurance issued an order that no more business should be placed with this non-admitted insurer. This order was directly related to the investment in marketable securities reported on the financial statements of the company. Respondent was charged with gross negligence in his performance of this audit. The deficiencies include the following: failure of audit working papers to document planning for the audit, failure of audit working papers to document the auditor's understanding of internal control structure and the assessed level of control risk; failure to perform analytical procedures; failure to exercise due professional care; failure to consider the entity's ability to continue as a going concern; failure to file a change of address with the Board for a period of more than eight months, even after notification from the Board.

Business and Professions Code, Division 3, Chapter 1, § 5100(c) and (f). California Code of Regulations, Title 16, Division 1, § 3.

Revocation of CPA Certificate, via default decision.

Effective September 6, 1996

The accusation filed against the Respondent alleged that the Respondent was grossly negligent in tax and accounting matters pertaining to seven separate clients. Specifically, Respondent accepted advance payment for services which were never performed. Respondent left California without completing the engagements for which he had been paid and failed to return client records necessary for the clients to have the services performed elsewhere. Respondent further withheld his location from his clients and the Board and its representatives during the course of the investigation.

Respondent had previously been ordered by the Board's Administrative Committee to complete 24 hours of continuing education. Respondent failed to complete the mandated continuing education and failed to attend a scheduled Administrative Committee Investigative Hearing.

Business and Professions Code, Division 3, Chapter 1, §§ 5037(b), 5100 (c), (f), and (h). California Code of Regulations, Title 16, Division 1, §§ 3 and 68.

Also See:

Porter & Company

Accusation filed.

Also See:

Porter Gary Allen

Accusation filed.

Revocation of CPA Certificate via default decision.

Effective November 4, 1996

In June 1995, an accusation was filed that included allegations that Respondent issued an audit report of a homeowners' association for the fiscal year ended March 31, 1991, which departed materially from generally accepted auditing standards. The following deficiencies were noted: Respondent used report language that was superseded by Statement on Auditing Standards No. 58, effective for audit reports issued on or after January 1, 1989; Respondent failed to properly present supplementary information; financial statements presented with Respondent's audit report did not include a statement of cash flows;
Notes to financial statements accompanying Respondent's report did not present the significant accounting policies of the homeowners' association.

Business and Professions Code, Division 3, Chapter 1, § 5100 (c).

Accusation filed.

Accusation filed.

Revocation of CPA Certificate, via stipulated settlement.

Respondent may petition the Board for reinstatement of his revoked license no earlier than two years from the effective date of the decision.

Respondent is required to reimburse the Board $8,084 for its investigation and prosecution costs, prior to filing a petition for reinstatement.

Effective March 4, 2001

Respondent admits that while serving as a controller in private industry from March 1997 to July 1999, he unlawfully embezzled funds from his employer in excess of $150,000.

Respondent was convicted by a plea of nolo contendere in the Sacramento County Superior Court to violating Penal Code § 504, (embezzlement by public or private official), and Penal Code §§ 12022.6 (a)(2) and 1203.045, (taking, damaging, and destroying property exceeding $150,000).

Respondent was sentenced to two years and four months in state prison, required to make restitution of $258,469 to the victim.

Business and Professions Code, Division 3, Chapter 1, § 5100 (a).