BEFORE THE CALIFORNIA BOARD OF ACCOUNTANCY DEPARTMENT OF CONSUMER AFFAIRS STATE OF CALIFORNIA In the Matter of the Ac,cusation Against: ERIK ALLEN KETELAAR 14928 W. 159 th Street Homer Glen, IL 60491 Certified Public Accountant Certificate No.116635 One. Case No. AC-2016-103 OAH No. 2016090469 DECISION AND ORDER The attached Stipulated Settlement and Disciplinary Order is hereby adopted by the California Board of Accountancy, Department of Consumer Affairs, as its Decision in this matter. This Decision shall become effective on \ zJ.2 j J lp It is so ORDERED __ t\\ _._. ____ ? .. B, "'--'l•r--- .... __ \ \ lp __ _ FOR THE ALIF RNIA BOARD O ~CCOUNT ANCY DEPARTMENT OF CONSUMER AFFAIRS
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BEFORE THE CALIFORNIA BOARD OF ACCOUNTANCY DEPARTMENT OF CONSUMER AFFAIRS
STATE OF CALIFORNIA
In the Matter of the Ac,cusation Against:
ERIK ALLEN KETELAAR 14928 W. 159th Street Homer Glen, IL 60491
Certified Public Accountant Certificate No.116635
One.
Case No. AC-2016-103
OAH No. 2016090469
DECISION AND ORDER
The attached Stipulated Settlement and Disciplinary Order is hereby adopted by the
California Board of Accountancy, Department of Consumer Affairs, as its Decision in this
matter.
This Decision shall become effective on \ zJ.2 ~ j J lp
It is so ORDERED __ t\\ _._. ____ ? .. B, "'--'l•r---....__ \ \ lp __ _
FOR THE ALIF RNIA BOARD O ~CCOUNT ANCY DEPARTMENT OF CONSUMER AFFAIRS
1 KAMALA D. HARRIS Attorney General of California JANICEK.LACHMAN Supervising Deputy Attorney General KRISTINA T. JARVIS Deputy Attorney General State Bar No. 258229
1300 I Street, Suite 125 P.O. Box 944255 Sacramento, CA 94244-2550 Telephone: (916) 324-5403 Facsimile: (916) 327-8643
Attorneys for Complainant
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8 BEFORE THE CALIFORNIA BOARD OF ACCOUNTANCY
9 DEPARTMENT OF CONSUMER AFFAIRS STATE OF CALIFORNIA
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11 In the Matter of the Accusation Against:
12 ERIK ALLEN KETELAAR 14928 W. 159th Street ·
13 Homer Glen, IL 60491
14 Certified Public Accountant Certificate No.116635
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16 Respondent.
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Case No. AC-2016-103
OAH No. 2016090469
STIPULATED SETTLEMENT AND DISCIPLINARY ORDER
17 IT IS HEREBY STIPULATED AND AGREED by and between the parties to the above-
entitled proceedings that the following matters are true:
PARTIES
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20 1. Patti Bowers (Complainant) is the Executive Officer of the California Board of
Accountancy (CBA). She brought this action solely in her official capacity and is represented in
this matter by Kamala D. Harris, Attorney General of the State of California, by Kristina T.
Jarvis, Deputy Attorney General.
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24 2. On or about September 13, 2012, the CBA issued Certified Public Accountant
Certificate No. CPA 116635 to Erik Allen Ketelaar (Respondent). The Certified Public
Accountant Certificate was in full force and effect at all times relevant to the charges brought in
Accusation No. AC-2016-103, and will expire on May 31, 2017, unless renewed.
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1 STIPULATED SET_TLEMENT (AC-2016-103)
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3. Respondent is representing himself in this proceeding and has chosen not to exercise
his right to be represented by counsel.
JURISDICTION
4. Accusation No. AC-2016-103 was filed before the CBA, and is currently pending
against Respondent. The Accusation and all other statutorily required documents were properly
served on Respondent on August 16, 2016. Respondent timely filed his Notice of Defense
contesting the-Accusation.
5. A copy of Accusation No. AC-2016-103 is attached as exhibit A and incorporated
herein by reference.
ADVISEMENT AND WAIVERS
6. Respondent has carefully read, and understands the charges and allegations in
Accusation No. AC-2016-103. Respondent has also carefully read, and understands the effects of
this Stipulated Settlement and Disciplinary Order.
7. Respondent is fully aware of his legal rights in this matter, including the right to a
hearing on the charges and allegations in the Accusation; the right to be represented by counsel at
his own expense; the right to confront and cross-examine the witnesses against him; the right to
present evidence and to testify on his own behalf; the right to the issuance of subpoenas to compel
the attendance of witnesses and the production of documents; the right to reconsideration and
court review of an adverse decision; and all other rights accorded by the California
Administrative Procedure Act and other applicable laws.
8. Respondent voluntarily, knowingly, and intelligently waives and gives up each and
every right set forth above. 22
23 CULPABILITY
24 9. Respondent admits the truth of each and every charge and allegation in Accusation
No. AC-2016-103. 25
26 10. Respondent agrees that his Certified Public Accountant Certificate is subject to
discipline and he agrees to be bound by the CBA's probationary terms as set forth in the
Disciplinary Order below.
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CONTINGENCY
11. This stipulation shall be subject to approval by the CBA. Respondent understands
and agrees that counsel for Complainant and the staff of the CBA may communicate directly with
the CBA regarding this stipulation and settlement, without notice to or participation by
Respondent. By signing the stipulation, Respondent understands and agrees that he may not
withdraw his agreement or seek to rescind the stipulation prior to the time the CBA considers and
acts upon it. If the CBA fails to adopt this stipulation as its Decision and Order, the Stipulated
Settlement and Disciplinary Order shall be of no force or effect, except for this paragraph, it shall
be inadmissible in any legal action between the parties, and the CBA shall not be disqualified
from further action by having considered this matter.
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11 12. The parties understand and agree that Portable Document Format (PDF) and facsimile
copies of this Stipulated Settlement and Disciplinary Order, including PDF and facsimile
signatures thereto, shall have the same force and effect as the originals.
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14 13. This Stipulated Settlement and Disciplinary Order is intended by the parties to be an
integrated writing representing the complete, final, and exclusive embodiment of their agreement.
It supersedes any and all prior or contemporaneous agreements, understandings, discussions,
negotiations, and commitments (written or oral). This Stipulated Settlement and Disciplinary
Order may not be altered, amended, modified, supplemented, or otherwise changed except by a
writing executed by an authorized representative of each of the parties.
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20 14. In consideration of the foregoing admissions and stipulations, the parties agree that
the CBA may, without further notice or .formal proceeding, issue and enter the following
Disciplinary Order:
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. 23 DISCIPLINARY ORDER
24 IT IS HEREBY ORDERED that Certified Public Accountant Certificate No. CPA 116635
issued to Respondent Erik Allen Ketelaar is revoked. However, the revocation is stayed and
Respondent is placed on probation for three (3) years on the following terms and conditions.
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27 1. Obey All Laws
28 Respondent shall obey all federal, California, other states 1 and local laws, including those
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1 rules relating to the practice of public accountancy in California.
2 2. Cost Reimbursement
3 Respondent shall reimburse the CBA $4,770.10 for its investigation and prosecution costs.
The payment shall be made as follows: in quarterly payments (due with quarterly written
reports), the final payment being clue six (6) months before probation is scheduled to terminate.
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6 3. Submit Written Reports
7 Respondent shall submit, within 10 days of completion of the quarter, written reports to the
CBA on a form obtained from the CBA. Respondent shall submit, under penalty of perjury, such
other written reports, declarations, and verification of actions as are required. These declarations
shall contain statements relative to Respondent 1s compliance with all the terms and conditions of
probation. Respondent shall immediately execute all release of information forms as may be
required by the CBA or its representatives.
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13 4. Personal Appearances
14 Respondent shall, during the period of probation, appear in person at interviews/meetings as
directed by the CBA or its designated representatives, provided such notification is accomplished
in a timely manner.
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17 5. Comply With Probation
18 Respondent shall fully comply with the terms and conditions of the probation imposed by
the CBA and shall cooperate fully with representatives of the CBA in its monitoring and
investigation of the Respondent 1s compliance with probation tenns and conditions.
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21 6. Practice Investigation
22 Respondent shall be subject to, and shall permit, a practice investigation of Respondent 1s
professional practice. Such a practice investigation shall be conducted by representatives of the
CBA, provided notification of such review is accomplished in a timely manner.
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25 7. Comply With Citations
26 Respondent shall comply with all final orders resulting from citations issued by the CBA.
27 8. Violation of Probation
28 If Respondent violates probation in any respect, the CBA, after giving Respondent notice
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1 and an opportunity to be heard, may revoke probation and carry out the disciplinary order that
was stayed. If an accusation or a petition to revoke probation is filed against Respondent during
probation, the CBA shall have continuing jurisdiction until the matter is final, and the period of
probation shall be extended until the matter is final.
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5 The CBA's Executive Officer may issue a citation under California Code of Regulations,
Section 95, to a licensee for a violation of a term or condition contained in a decision placing that
licensee on probation.
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8 9, Completion of Probation
9 Upon successful completion of probation, Respondent's license will be fully restored.
10 10. Ethics Continuing Education
11 Within 180 days of the effective date of this Order, Respondent shall complete four hours
of continuing education in course subject matter pertaining to the following: a review of
nationally recognized codes of conduct emphasizing how the codes relate to professional
responsibilities; case-based instruction focusing on real-life situational learning; ethical dilemmas
facing the accounting profession; or business ethics, ethical sensitivity, and consumer
expectations. Courses must be a minimum of one hour as described in California Code of
Regulations Section 88.2. The hours shall be in addition to the continuing education
requirements for relicensing.
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19 If Respondent fails to complete said courses within the time period provided, Respondent
shall so notify the CBA and shall cease practice until Respondent completes said courses, has
submitted proof of same to the CBA, and has been notified by the CBA that he may resume
practice. Failure to complete the required courses within the time period provided shall constitute
a violation of probation.
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24 11. Regulatory Review Course
25 Within 180 days of the effective date of this Order, Re.spondent shall complete a CBA-
approved course on the provisions of the California Accountancy Act and the CBA Regulations
specific to the practice of public accountancy in California emphasizing the provisions applicable
to current practice situations. The course also will include an overview of historic and recent
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diet ipHnary actions taken by the CBA, highlighting the misconduct wl1rch led t.n licensees being
disciplined. The course 8hall be a minimum oftwo (2) hours. The hours ::,;haH be in ad<lition to
t h e I continumg · ' e d ucat1on · rcqmremen - t s fi or rt: 1' 1cc11Bmg. - ·
ff Respondent fails to complete said courses within the time period providt:d, ReNpDndenl
sh 11 so notify the CEA and shall cease practice 1mtH Respondent completes said courses~ has
su mitted proof of same to the C.8A, and has been notified by the CBA that he may resume
pJctlce. Failure to complete the requfred courses within the time period provided shall constitute
a ioluiion of probation.
12. Active Licc11i.e Stutus
l 0 Respondent shali at all times maintain an active license status with the CEA~ iuch1ding
dt ing any period of suspension. lfthe Hcense is expired at the time the CBA's decision becomes
effective, the license musl be renewed within30 days of the effective date of the dccisjon.
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13 · ACCEPTANCE
I 4 I have carefuJly read the Stipulated Settlement and Disciphnary Order. l understand the
st pulation and the effect it will huve 011 my Certified Public Accountant Certificate. l enter into
t i~ Stipulated Settlement and D.isc1pHnary Ordci.· vo1untarlly, knowingly, and inteUigently. und
a ~e to be bound by 1hc Dei.:ision ancl Order of the California Board of Accountancy.
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~~ BRTK ALLEN KETELAAR Respondent
6 STIPULATED SETTLEMENT (AC~2016-103)
1 ENDORSEMENT
2 The foregoing Stipulated Settlement and Disciplinary Order is hereby respectfully
submitted for consideration by the California Board of Accountancy. 3 ·
4 Dated: October 26, 2016
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Respectfully submitted,
KAMALA D. HARRIS Attorney General of California JANICE K. LACI-IMAN Supervising Deputy Attorney General
~ .(L .. :~ KRISTINA T. ~Deputy Attorney General Attorneys for Complainant
STIPULATED SETTLEMENT (AC-2016-103)
SA2016101603 12463679.doc
Exhibit A
Accusation No. AC-2016-103
KAMALA D. HARRIS Attorney General of California JANICE K. LACHMAN Supervising Deputy Attorney General KRISTINA T. JARVIS Deputy Attorney General State Bar No. 258229
1300 I Street, Stiite 125 P.O. Box 944255 Sacramento, CA 94244:-2550 Telephone: (916) 324-5403 Facsimile: (916) 327-8643
Attorneys for Complainant
BEFORE THE·
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CALIFORNIA BOARD OF ACCOUNTANCY DEPARTMENT OF CONSUMER AFFAIRS
STATE OF CALIFORNIA
11 In the Matter of the Accusation Against:
12 ERIK ALLEN KETELAAR 14928 W. 159t1t Street
Case No. AC-2016-103
ACCUSATION
13 Homer Glen, IL· 60491 · ·
14 Certified Public Accountant Certificate No. 116635
15 Respondent.
Complainant alleges:
PARTIES
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19 1. Patti Bowers (Complainant) brings this Accusation solely in her official capacity as the
Executive Officer of the California Board of Accountancy (CBA), Department of Consumer
Affairs.
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22 2. On or about September 13, 2012, the C~A issued Certified Public Accountant
Certificate Number CPA 116635 to ErikAllenKetelaar(Respondent). The Certified Public
Accountant Certificate was in full force and effect at all times relevant to the charges brought
herein and will expire on May 31, 2017, unless renewed.
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26 JURISDICTION
27 3. Tbis Accusation is brought before the CBA under the authority of the following laws.
All ~ection references are to the Business and Professions Code unless otherwise indicated. 28
1 ( ERIK ALLEN KETELAAR) ACCUSATION
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Section 5100. states :in pertinent part:
"After notice and hearing the board may revoke, suspend, or refuse to renew any pe11nit or
certificate granted 1mder Article 4 ( commenc:ing with Section 5070) and Article 5 ( commenc:ing
with Section 5080), or may censure the holder of that pe11nit or certificate for unprofessional
conduct that :includes, but is not limited to, one or any comb:ination of the following causes:
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"(d) Cancellation, revocation, or suspension of a certificate or other authority to practice as
a certified public accountant or a public accountant, refusal to renew the cert-ificate or other
authority to practice as a certified public accountant or a public accountant, or any other discipline
by any other state or foreign country.
"(g) Willful violation of.this chapter or any rule or ·regulation·promulgated by the board
under the authority granted under this chapfer. ; : "
5: · Section 5063 requires a licensee to report in writing to the CBA within 30 days the ·
ca.11.cellation; revocation, or suspension· of a certifi~ate or refosal to renew a -certificate to practice
as a certified public accountant or a public accountant, by any other state or foreign country, and
the cancellation, revocation, or suspension of the right to practice as a certified public ·accountant
or a public accountant before any governmental body or agency.
6. Section 5109 states:
"The expiration, cancellation, forfeiture, or suspension of a li,cense, practice privilege, or
other authority to practice public accountancy by operation of law or by order or decision of the
board or a court oflaw, the placement of a license 011 a retired status, or the voluntary su11·ender of
a license by a licensee shall not deprive the board of jurisdiction to commence or proceed with any
:investigation of or action br disciplinary proceeding against the licensee, or to render a decision
suspending or revoking the license."
7. Section 5100.5 states:
"(a) After notice and hearing the board may, for unprofessional con~uct, permanently restrict
or limit the practice of a licensee or impose a probationary term or condition on a license, which 28 ·
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( ERIK ALLEN KETELAAR) ACCUSATION
1 prohibits the licensee from perfonning or engaging in any of the acts or services described in
Section 5 0 51. 2
3 "(b) A licensee may petition the board pursuant to Section 5115 for reduction of penalty or
reinstatement of the privilege to engage in the service or act restricted or limited by the board. 4
5 "(c) The authority or sanctions provided by this section are in addition to any other civil,
criminal, or administrative penalties or sanctions provided by law, and do not supplant, but are
cumulative to, other disciplinary authority, penalties, or sanctions.
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8 "( d) Failure to comply with any restriction or limitation imposed by the board pursuant to
this section is grounds for revocation of the license. 9
10 "(e) For purposes of this section, both of the following shall apply:
11 "(l) "Unprofessional conduct" includes, but is not limited to, those grounds for discipline or
denial listed in Section 5100. 12
13 "(2) "Permanently restrict.or limit the practice of' includes, but is not limited to, the
prohibition on engaging in or performing any attestation engage:rp.ent, audits~ or compilations." 14
15 COST RECOVERY·
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8. Section 5107(a) states:
"The executive officer of the board may request the administrative law judge, as part of the
proposed decision in a disciplinary proceeding, to direct any holder of a permit or certificate found
to have comrnitted a violation or violations of this chapter to pay to the board all reasonable costs
of investigation and prosecution of the case, including, but not l~ted to, attorneys' fees. The
board shall not recover costs incurred at the administrative hearing."
9. Section 5116 states in pertinent part:
"(a) The board, after appropriate notice and an opportunity for hearing, may order any
licensee or applicant for licensure or examination to pay an ach1m1istrative penalty as provided in
this article as part of any disciplinary proceeding or other proceeding provided for in this chapter.
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"( d) Administrative penalties assessed under this article shall be in addition to any other
penalties or sanctions imposed on the licensee or other person, including, but not limited to, license
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1 revocation, license suspension, denial of the application for licensure, denial of the petition for
reinstatement, or denial of admission to the licensing exam:ination .. Payment of these administrative
penalties may be included as a condition of probation when probation is ordered."
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4 FIRST CAUSE FOR DISCIPLINE
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(Unprofessional Conduct - Discipline by Another State)
10. Respondent is subject to disciplinary action under section 5100, subdivision (d), in that
Respondent's Certified Public Accountant certificate and two (2) of Respondent's firms'
registrations with the Arizona State Board of Accountancy were disciplined by the Arizona State
Board of Accountancy. The circumstances are as follows:
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10 11. On or about April 14, 2015, Respondent entered into a Consent Order with the
Arizona State Board of Accountancy entitled Decision and Order (By Consent) Accepting
Relinquishment of CPA Certificate in Lieu of FormaJ Disciplinary Proceedings and Accepting
Revocation ofFirm Registrations (Consent Order). ·This Consent Order was due to
approximately five (5) consumer complaints that were then investigated by the Arizona Board, and
other consumer complai.rits that had not yet been investigated, The effect of the Consent Order
was that Respondent's personal CPA certificate was relinquished and he was prohibited from
practicing public accounting as a Certified Public Accountant in Arizona, and that his firm
registrations, Erik Ketelaar, CPA, and Ketelaar Accounting, PLLC, were revoked. Respondent
acknowledged that the Consent Order constituted disciplinary action against his certificate.
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20 SECOND CAUSE FOR DISCIPLINE
21 (Unprofessional Conduct- Willful Violation of Accountancy Act)
22 12. Respondent is subject to disciplinary action under se~tion 5100, subdivision (g), in that
Respondent violated section 5063, subdivision (a)(2), :in that Respondent failed to notify the CBA
in writing within thirty (30) days of the occurrence of the disciplinary action taken by the Arizona
State Board of Accountancy as set forth in paragraphs 10 and 11, above. Further, Respondent
failed to report the disciplinary action imposed by Arizona on his CPA renewal application for the
period ending May 31, 2015.
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PRAYER
WHEREFORE, Complainant requests that a hearing be held on the matters herein alleged>
and that following the hearing, the California Board of Accountancy issue a decision:
1. ·Revoking or suspending, restri~ting, limiting or othe1wise imposing discipline upon
Certified Public Accountant Certificate Number CPA 11663 5, issued to Erik Allen Ketelaar;
2. Ordering Erik Allen Ketelaar to pay an administrative penalty to the CBA pursuant to
Business and Professions Code section 5116;
3. Ordering Erik Allen Ketelaar to p~y the CBA the reasonable costs of the investigation
and enforcement of this case, pursuant to Business and Professions Code section 5107; and
4. Taldng such other and further action as deemed necessmy and proper.
SA2016101603 12320952.doc
Executive Officer California Board of Accountancy Department of Consumer Affairs State of California Complainant