Agenda Item I. - Department of Consumer Affairs - State of California

CALIFORNIA BOARD OF ACCOUNTANCY (CBA) 

PUBLIC MEETING NOTICE FOR THE COMMITTEE ON PROFESSIONAL CONDUCT 

(CPC), LEGISLATIVE COMMITTEE (LC) AND CBA MEETINGS 

____________________________________________ 

DATE: Thursday, January 26, 2012 COMMITTEE MEETING (CPC) 

TIME: 10:00 a.m. 

COMMITTEE MEETING (LC) 

TIME: 10:30 a.m., or upon adjournment 

of the CPC meeting 

CBA MEETING 

TIME: 1:00 p.m. to 5:00 p.m. 

DATE: Friday, January 27, 2012 CBA MEETING 

TIME: 9:00 a.m. to 1:00 p.m. 

PLACE: Crowne Plaza Irvine 

17941 Von Karman Ave. 

Irvine, CA 92614 

Telephone: (949) 863-1999 

Fax: (949) 474-7236 

TELECONFERENCE LOCATION (1/27/12): 

Imani Community Church 

3300 MacArthur Blvd. 

Oakland, CA 94602 

Telephone: (510) 531-5411 

Enclosed for your information is a copy of the agendas for the CPC, LC and CBA 

meetings on January 26-27, 2012. For further information regarding these meetings, 

please contact: 

Veronica Daniel, Board Relations Analyst 

(916) 561-1716, or vdaniel@cba.ca.gov 

California Board of Accountancy 

2000 Evergreen Street, Suite 250 

Sacramento, CA 95815 

An electronic copy of this notice can be found at http://www.dca.ca.gov/cba/calendar.shtml 

The next CBA meeting is scheduled for March 22-23, 2012 in Northern CA. 

____________________________________________ 

The meeting is accessible to individuals who are physically disabled. A person who needs a disability-related 

accommodation or modification in order to participate in the meeting may make a request by contacting Veronica Daniel 

at (916) 561-1718, or email vdaniel@cba.ca.gov, or send a written request to the CBA Office at 2000 Evergreen Street, 

Ste. 250, Sacramento, CA 95815. Providing your request is at least five (5) business days before the meeting will help to 

ensure availability of the requested accommodation.


COMMITTEE ON PROFESSIONAL CONDUCT (CPC) 

AGENDA 

Thursday, January 26, 2012 

10:00 a.m. 

Crowne Plaza Irvine 



Telephone: (949) 863-1999 

Fax: (949) 474-7236 

Roll Call and Call to Order (Michael Savoy, CPC Chair). 

I. Approve Minutes of the November 17, 2011 CPC Meeting (Michael Savoy, 

CPC Chair). 

II. Discussion on Title 16, CCR Sections 37 – Reissuance, 12(d) and 12.5(f) – 

Experience Obtained Five or More Years Prior to Application, Section 87 – 

Basic Requirements, Section 87.1 – Conversion to Active Status Prior to 

Renewal, and Section 88 – Programs Which Qualify (Deanne Pearce, CBA 

Staff). 

III. Discussion on Initiating a Rulemaking to Amend Title 16, CCR Sections 87(e) 

and 87.1(d) – Eight-Hour Fraud Continuing Education Requirement 

(Matthew Stanley, CBA Staff). 

IV. Discussion on Initiating a Rulemaking to Amend Title 16, CCR Sections 40 and 

45 – Peer Review (April Freeman, CBA Staff). 

V. Public Comments.* 

VI. Agenda Items for Next Meeting. 

Adjournment. 

Action may be taken on any item on the agenda. In accordance with the Bagley-Keene Open Meetings Act, all meetings of 

the CPC are open to the public. 

*Government Code section 11125.7 provides the opportunity for the public to address each agenda item during discussion or 

consideration by the CPC prior to the CPC taking any action on said item. Members of the public will be provided appropriate 

opportunities to comment on any issue before the CPC. Individuals may appear before the CPC to discuss items not on the 

agenda; however, the CPC can take no official action on these items at the time of the same meeting. (Government Code sec. 

11125.7(a).) 

CBA members who are not members of the CPC may be attending the meeting. However, if a majority of members of the full 

board are present at the CPC meeting, members who are not members CPC may attend the meeting only as observers.


LEGISLATIVE COMMITTEE (LC) 

AGENDA 


10:30 a.m. or 

Upon adjournment of the CPC 




Telephone: (949) 863-1999 

Fax: (949) 474-7236 

Roll Call and Call to Order (Sally Anderson, LC Chair). 

I. Approve Minutes of the July 21, 2011 LC Meeting (Sally Anderson, LC Chair). 

II. Discussion and Possible Action on Draft Language for Changes to Business 

and Professions Code Section 5070.1 – Retired Status (Matthew Stanley, CBA 

Staff). 

III. Public Comments.* 

IV. Agenda Items for Next Meeting. 

Adjournment. 

Action may be taken on any item on the agenda. In accordance with the Bagley-Keene Open Meetings Act, all meetings of 

the LC are open to the public. 

*Government Code section 11125.7 provides the opportunity for the public to address each agenda item during discussion or 

consideration by the LC prior to the LC taking any action on said item. Members of the public will be provided appropriate 

opportunities to comment on any issue before the LC. Individuals may appear before the LC to discuss items not on the 

agenda; however, the LC can take no official action on these items at the time of the same meeting. (Government Code sec. 

11125.7(a).) 

CBA members who are not members of the LC may be attending the meeting. However, if a majority of members of the full 

board are present at the LC meeting, members who are not members LC may attend the meeting only as observers.

DEPARTMENT OF CONSUMER AFFAIRS (DCA) 


CBA MEETING 

AGENDA 


1:00 p.m. – 5:00 p.m. 

Friday, January 27, 2012 

9:00 a.m. – 1:00 p.m. 

Important Notice to the Public 

The order of agenda times other than those identified as “time certain” are 

approximate. Agenda items may be discussed and action taken out of order at the 

discretion of the CBA President. 




Telephone: (949) 863-1999 

Fax: (949) 474-7236 

Roll Call and Call to Order (Marshal Oldman, President). 

I. Report of the President (Marshal Oldman). 

A. Report of the January 5, 2012 Executive Leadership Roundtable. 

B. 

Educational Presentation on License Renewal and Continuing 

Education Requirements for CPAs (Kris Rose, Licensing 

Manager). 

C. Announcement of New CBA Committee and Liaison Appointments. 

II. Report of the Vice President (Leslie LaManna).

A. Recommendations for Appointment(s) to the Enforcement Advisory 

Committee (EAC). 

B. Recommendations for Appointment(s) to the Qualifications 

Committee (QC). 

III. Report of the Secretary/Treasurer (Michael Savoy). 

Discussion of Governor’s Budget. 

1/26/2012 

TIME CERTAIN 

IV. Open Session. Petitions for Reinstatement. 

2:00 PM A. Silver D. Sack – Petition for Reinstatement of Revoked Certificate. 

B. Roland Zita – Petition for Reinstatement of Revoked Certificate. 

V. Closed Session. Pursuant to Government Code Section 11126(c)(3), 

the CBA Will Convene Into Closed Session to Deliberate on Disciplinary 

Matters (Stipulations, Default Decisions, Proposed Decisions, and 

Petitions for Reinstatement). 

VI. Regulation Hearings and Possible Action on Proposed Regulations 

(Kari O’Connor, CBA Staff). 

1/27/2012 A. Regulation Hearing Regarding Title 16, California Code of 

TIME CERTAIN Regulations (CCR) Sections 15, 15.1, 15.2, 15.3, 15.4, 70, 71, and 

9:00 AM 87.1 – Retired Status. 

1. Discussion and Possible Action to Adopt or Amend Proposed 

Text at Title 16, CCR Sections 15, 15.1, 15.2, 15.3, 15.4, 70, 71, 

and 87.1, and Adopt New Article 2.5 Regarding Retired Status. 

1/27/2012 B. Regulation Hearing Regarding Title 16, CCR Section 4 – Safe 

TIME CERTAIN Harbor. 

9:05 AM 


Text at Title 16, CCR Section 4 – Safe Harbor Language. 

1/27/2012 C. Regulation Hearing Regarding Title 16, CCR Section 37.5 – 

TIME CERTAIN Fingerprinting and Disclosure Requirements. 

9:10 AM 


Text at Title 16, CCR Section 37.5 – Fingerprinting and 

Disclosure Requirements. 

VII. Report of the Executive Officer (EO) (Dan Rich, CBA Staff). 

2

A. Update on Staffing. 

B. Update on CBA 2010-2012 Strategic Plan. 

C. Update on CBA 2010-2012 Communications and Outreach Plan 

(Written Report Only). 

VIII. Report of the Licensing Chief (Deanne Pearce, Assistant EO). 

A. Report on Licensing Division Activity. 

B. Report on Activities Related to the New Educational Requirements 

for CPA Licensure set to Take Effect January 1, 2014 

(Dominic Franzella, Licensing Manager). 

IX. Report of the Enforcement Chief (Rafael Ixta). 

A. 

Enforcement Case Activity and Aging Report. 

B. Citation and Fine Activity Report. 

C. Reportable Events Report. 

D. Update on Peer Review Implementation. 

E. Discussion Regarding Options for Using Administrative Penalties in 

Disciplinary Cases. 

F. Results of 1 st Quarter Performance Measures Report to DCA. 

X. Committee and Task Force Reports. 

A. 

B. 

Enforcement Program Oversight Committee (EPOC) (Diana Bell, 

Chair). 

No Report. 

Committee on Professional Conduct (CPC) (Michael Savoy, Chair). 

1. 

2. 

Report of the January 26, 2012 CPC Meeting. 

Discussion on Title 16, CCR Sections 37 – Reissuance, 12(d) 

and 12.5(f) – Experience Obtained Five or More Years Prior to 

Application, Section 87 – Basic Requirements, Section 87.1 – 

Conversion to Active Status Prior to Renewal, and Section 88 – 

Programs Which Qualify. 

3

3. Discussion on Initiating a Rulemaking to Amend Title 16, CCR 

Sections 87(e) and 87.1(d) – Eight-Hour Fraud Continuing 

Education Requirement. 

4. Discussion on Initiating a Rulemaking to Amend Title 16, CCR 

Sections 40 and 45 – Peer Review. 

C. Legislative Committee (LC) (Sally, Anderson, Chair). 

1. Report of the January 26, 2012 LC Meeting. 

2. Discussion and Possible Action on Draft Language for Changes 

to Business and Professions Code Section 5070.1 – Retired 

Status. 

D. Peer Review Oversight Committee (PROC) (Nancy Corrigan, 

Chair). 

E. 

Report of the December 9, 2011 PROC Meeting. 

Enforcement Advisory Committee (EAC) (Cheryl Gerhardt, Chair). 

No Report. 

F. Qualifications Committee (QC) (Fausto Hinojosa, Chair). 

Report of the January 25, 2012 QC Meeting. 

XI. Acceptance of Minutes 

A. Draft Minutes of the November 17-18, 2011 CBA Meeting. 

B. Minutes of the November 17, 2011 CPC Meeting. 

C. Minutes of the July 21, 2011 LC Meeting. 

D. Minutes of the October 27, 2011 PROC Meeting. 

E. Minutes of the October 19, 2011 QC Meeting. 

XII. Other Business. 

A. 

American Institute of Certified Public Accountants (AICPA). 

No Report. 

B. National Association of State Boards of Accountancy (NASBA). 

4

1. Update on NASBA Committees. 

a. Accountancy Licensee Database Task Force 

(Sally Anderson). 

b. Board Relevance & Effectiveness Committee 

(Marshal Oldman). 

c. Education Committee (Donald Driftmier). 

d. Uniform Accountancy Act Committee (UAA) 

(Sally Anderson). 

2. NASBA’s Request for Vice Chair Recommendations for 2012- 

2013. 

XIII. Closing Business. 

A. 

B. 

Request to Support Walter Davenport for NASBA Vice Chair 

Position 2012-2013. 

Public Comments.* 

Agenda Items for Future CBA Meetings. 

C. Press Release Focus (Dan Rich, CBA Staff). 

Recent Press Releases. 

Adjournment. 

Action may be taken on any item on the agenda. The time and order of agenda items are subject to change at 

the discretion of the CBA President and items may be taken out of order. 

In accordance with the Bagley-Keene Open Meetings Act, all meetings of the CBA are open to the public. While 

the CBA intends to webcast this meeting, it may not be possible to webcast the entire open meeting due to 

limitations on resources. 

*Government Code section 11125.7 provides the opportunity for the public to address each agenda item during 

discussion or consideration by the CBA prior to the CBA taking any action on said item. Members of the public will 

be provided appropriate opportunities to comment on any issue before the CBA, but the CBA President may, at 

his or her discretion, apportion available time among those who wish to speak. Individuals may appear before the 

CBA to discuss items not on the agenda; however, the CBA can neither discuss nor take official action on these 

items at the time of the same meeting (Government Code Sections 11125, 11125.7(a)). 

5

Educational Presentation on License Renewal 

and Continuing Education Requirements for CPAs 

Presented by: Kris Rose, Licensing Manager 

Date: January 3, 2012 

Purpose of the Item 

CBA Item I.B. 

January 26-27, 2012 

The information contained in this agenda item is designed to provide California Board of 

Accountancy (CBA) members with increased knowledge of the license renewal 

requirements for Certified Public Accountants (CPA), Public Accountants (PA), 

Accountancy Corporations (COR), and Accountancy Partnerships (PAR), including the 

continuing education (CE) requirements for CPAs and PAs. Additionally, the paper will 

provide an overview of the Renewal and Continuing Competency (Renewal) Unit’s 

process for evaluating licensees’ compliance with the CE requirements, and process for 

granting/denying CE exemption/extension requests. The final section of the paper 

provides an overview of the Renewal Unit’s staffing and annual workload. 

License Renewal Requirements 

CPA/PA 

A CPA/PA license expires every other year at midnight on the last day of a licensee’s 

birth month, and the year of expiration is based upon the licensee’s birth year. A 

licensee born in an even year has a license that expires each even year, while a 

licensee born in an odd year has a license that expires each odd year. 

To maintain a valid license, a CPA/PA must complete the license renewal application 

(Attachment #1) and have it postmarked, along with the renewal fee, by midnight of the 

expiration date. The license renewal application along with all necessary renewal 

information and instructions is mailed to the licensee’s address of record approximately 

90 days prior to the license expiration date. Presently, the renewal fee is the same for a 

licensee renewing his/her license as active or inactive – $120. Payment of the renewal 

fee must be in the form of a money order, cashier’s check, or personal check drawn on 

a U.S. bank. Credit card payments are not accepted at this time. Once the Department 

of Consumer Affairs (DCA) transitions over to the BreEZe system; however, licensees 

will be able to complete the license renewal application and submit the renewal 

payment via an on-line process.

Educational Presentation on License Renewal and Continuing Education 

Requirements for CPAs 

Page 2 of 6 

A licensee selecting to renew active must document (through self certification under 

penalty of perjury) completion of 80 hours of qualifying CE in the appropriate subject 

matter. 1 The Continuing Education Reporting Worksheet is provided on the reverse 

side of the license renewal application for the licensee’s convenience. Licensees may 

also submit, along with the license renewal application, their own CE spreadsheet 

provided it includes all pertinent information requested on the CBA’s reporting 

worksheet. A licensee renewing a license in an inactive status is not required to 

complete CE. 

A qualifying CE course or program must be a formal program of learning which 

contributes directly to the professional competence of a licensee in public practice. This 

allows a licensee to select from a wide range of providers, which could include private 

institutions; national, state, and local accounting organizations; universities and 

colleges; and professional development courses offered by a licensee’s accounting firm. 

As part of the 80-hour requirement, a licensee renewing active must complete CE in 

specified subject areas (See Attachment #2, CE Reference Guide). The CBA 

currently maintains six subject area requirements: (1) 50/50, (2) Ethics Education, (3) 

Governmental Auditing, (4) Accounting and Auditing (A&A), (5) Fraud, and (6) 

Regulatory Review. All licensees are required to meet the 50/50 requirement; however, 

the remaining subject area requirements are based on either work performed during the 

two-year period immediately preceding license expiration, or by order of law. If a 

licensee is required to complete Governmental, A&A, Fraud, or regulatory review, the 

hours completed are part of the 80-hour requirement and not in addition to the 

requirement. 

Effective January 1, 2012, as part of the total 80 hours of CE required to renew a 

license in an active status, a minimum of 20 hours of CE, including a minimum of 12 

hours in technical subject matter, must be completed in each year of the two-year 

license renewal period. 

Worksheet Review 

RCC staff perform 100% worksheet review of all license renewal applications to verify 

the form is complete and the licensee has completed all the required CE. 

The following are the present subject areas for CE: 

1 The 80-hour requirement is for all licensees with the exception of a new licensee and a licensee that 

underwent a status conversion during the two-year period immediately preceding license expiration. 

These groups are required to document 20 hours of qualifying CE in the appropriate subject matter for 

each full six-month period of active licensure. Therefore, the total number of hours could range from 0 – 

80.




1. 50/50 Requirement 

The underlying purpose of the 50/50 requirement is to maintain or enhance the 

technical skills and knowledge of a licensee. Therefore, beginning in mid-2001, the 

CBA instituted a requirement that a licensee renewing in an active status complete a 

minimum of 40 hours of CE (50 percent) in technical subject areas. The CBA defined 

technical subjects to include accounting, auditing, fraud, taxation, consulting, financial 

planning, ethics as defined in Section 87(b) of the CBA Regulations, Regulatory Review 

as defined in Section 87.8 of the CBA Regulations, computer and information 

technology (except word processing), and specialized industry or government practices 

that focus primarily upon the maintenance and/or enhancement of the public accounting 

skills and knowledge needed to competently practice public accounting. 

Conversely, a licensee may claim no more than 40 hours of CE (50 percent) in nontechnical 

subject areas. The following are considered non-technical subject areas: 

communication skills, word processing, sales, marketing, motivational techniques, 

negotiation skills, and office, practice, and personnel management. 

2. Ethics Education 

A licensee must complete four hours of ethics education as part of the required 80 

hours of CE. The course must pertain 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 

• Business ethics, ethical sensitivity, and consumer expectations 

The four hours of ethics education may be taken as a single course or as a combination 

of courses totaling four hours. The course must also be a minimum of at least one 50minute 

class hour in length. Any ethics education taken in a self-study format must 

require a 90 percent passing score in order to qualify as acceptable CE. 

3. Governmental Auditing 

A licensee who engages in planning, directing, conducting substantial portions of field 

work, or reporting on financial or compliance audits of a governmental agency 2 during 

the two-year period immediately preceding license expiration must complete 24 hours of 

CE in governmental accounting, auditing, or related subjects. To fulfill the governmental 

2 A governmental agency is defined as any department, office, commission, authority, board, governmentowned 

corporation, or other independent establishment of any branch of federal, state, or local 

government.




auditing CE requirement, a licensee must complete CE in the following related subjects: 

those which maintain or enhance the licensee’s knowledge of governmental operations, 

laws, regulations and reports; any special requirements of governmental agencies; 

subjects related to the specific or unique environment in which the audited entity 

operates; and other auditing subjects which may be appropriate to government auditing 

engagements. 

4. Accounting and Auditing 

Similar to the governmental auditing requirement, a licensee that engages in the 

planning, directing, approving or performing of substantial portions of the work, or 

reporting on an audit, review, compilation, or attestation service of a non-governmental 

agency during the two-year period immediately preceding license expiration must 

complete 24 hours of A&A CE. To fulfill the A&A CE requirement, course subject matter 

must pertain to financial statement preparation and/or reporting (whether such 

statements are prepared on the basis of generally accepted accounting principles or 

other comprehensive bases of accounting), auditing, reviews, compilations, industry 

accounting, attestation services, or assurance services. It should be noted that a 

licensee who fulfills the governmental auditing CE requirement is deemed to have met 

the A&A CE requirement. 

5. Fraud 

Beginning in mid-2005, the CBA took steps to enhance the CE requirements specific to 

licensees required to complete the aforementioned governmental auditing and/or A&A 

CE requirements. Specifically, a licensee subject to the governmental or A&A CE 

requirement must, in addition to the 24-hour requirement, complete eight hours of fraud 

CE specifically related to the detection and/or reporting of fraud in financial statements. 

6. Regulatory Review 

Each six-year period (three renewals), a licensee is required to complete a Regulatory 

Review course. This course provides information on the provisions of the current 

Accountancy Act and CBA Regulations. All courses are a minimum of two hours. This is 

the only area of CE that a licensee must choose from a CBA pre-approved course list. 

The course can be taken prior to its due date and will be updated accordingly by staff to 

establish a new six-year due date. 

CE Exemption/Extension Requests 

Recognizing that extenuating circumstances might exist that impact the ability of a 

licensee to complete the requisite CE requirements, the CBA offers a licensee the 

option to request an exemption from, or an extension of time to complete, the CE 

requirements. These requests must be accompanied by substantiating documentation.




Extension requests are generally granted for one to six months beginning from the time 

of license expiration. 

CE exemption/extension requests fall under one of the following categories: (1) health 

reasons, (2) military service, or (3) other good causes such as death of a family member 

or natural disasters. For a licensee requesting an exemption/extension for health 

reasons, the request must be certified by a medical practitioner documenting the 

circumstances that prevented compliance. For a licensee submitting a request because 

of military service, the CBA generally receives paperwork from the Armed Forces noting 

the date on which he/she was called to active duty. And finally, for a licensee 

submitting a request under the pretext of other good cause, the substantiating 

documents range from a death certificate (for death of a family member) to evacuation 

notices (for natural disasters). 

In addition to the aforementioned request types, the CBA’s regulations also allow for an 

extension of time for a licensee to complete the Governmental Auditing, A&A, and 

Fraud CE subject matter requirements. This extension is for six months, with certain 

criteria needing to be met. First, a licensee must have become subject to the 

requirement during the last six months of the two-year licensure period, and second, a 

licensee must have completed the full 80-hour requirement. A licensee may request 

this type of extension on the license renewal application. (See Attachment #1, 

Question 10a and 10b). 

Accountancy Corporations and Accountancy Partnerships 

The renewal cycle for CORs and PARs is the same as CPAs/PAs – every two years. 

The expiration date is based on the month and year the CBA originally approved the 

corporation or partnership application. If approved in an even year, the license will 

expire each even year on the last day of the month in which it was originally approved. 

If approved in an odd year, the license will expire on each odd year on the last day of 

the month in which it was originally approved. 

To renew a COR license, the corporation must have at least one shareholder holding an 

active California CPA/PA license in good standing and submit the following to the CBA 

along with the license renewal application (Attachment #3) and $120 renewal fee: 

� A list of all shareholders. The list must include all licensed and non-licensed 

shareholders and include any shareholders associated or disassociated since 

the last renewal, along with the date of association or disassociation. 

To renew a PAR license, the partnership must have at least two partners, one of whom 

must have an active California license. If the partnership is comprised of only two 

partners, one of the partners may be a non-licensee owner providing the licensed 

partner has an active California license in good standing. The partnership must submit




the following to the CBA along with the license renewal application (Attachment #4) 

and $120 renewal fee: 

� A list of all partners. The list must include all licensed and non-licensed 

partners and include any partners associated or disassociated since the last 

renewal, along with the date of association or disassociation. 

Renewal Unit Staffing and Workload 

Presently the CBA’s Renewal Unit is allocated fourteen positions – two Associate 

Governmental Program Analysts (senior-level analysts), five Staff Services Analysts, 

four Office Technicians and one permanent-intermittent Office Technician. The unit 

also maintains two part-time seasonal employees to assist in clerical functions 

performed in the unit. Due to the hiring freeze, over the last year the RCC Unit has had 

several vacancies, which we are now able to actively recruit for. 

The CBA’s Renewal Unit annually processes approximately 35,000 CPA/PA license 

renewal applications, 1,600 Accountancy Corporation renewal applications, and 600 

Accountancy Partnership renewal applications. Staff responds to approximately 7,500 

e-mails and 21,000 phone calls annually. The RCC Unit is also responsible for 

approving providers and courses for the Regulatory Review requirement.

CALIFORNIA BOARD OF ACCOUNTANCY 

2000 EVERGREEN STREET, SUITE 250, SACRAMENTO, CA 95815-3832 

TELEPHONE: (916) 263-3680 FACSIMILE: (916) 263-3672 

WEB ADDRESS: http://www.dca.ca.gov/cba 

CERTIFIED PUBLIC ACCOUNTANT/ PUBLIC ACCOUNTANT 

LICENSE RENEWAL APPLICATION 

PART 

A PLEASE COMPLETE ALL PARTS AND RETURN THE ENTIRE APPLICATION. 

MAKE CHECK OR MONEY ORDER PAYABLE TO DEPARTMENT OF CONSUMER AFFAIRS. 

****** I M P O R T A N T ****** 

PLEASE USE THE ACCOMPANYING INSTRUCTIONS TO ASSIST IN COMPLETING THE APPLICATION. 

TYPE LICENSE NO LICENSE EXPIRES REG REVIEW DUE PRINT NAME 

CPA / / / / DAYTIME PHONE 

1. Are you renewing: Active Inactive 

Please also CHECK BOX 1 IN PART B below with the same answer. 

BUSINESS PHONE 

2. If your address of record shown in PART B is a post office box or mail drop, please write the street address of your 

residence or business here:____________________________________________________________________ 

3. Reporting Convictions/License Discipline: Since you last renewed your license, have you been convicted of a felony; 

any crime related to the professional responsibilities of a CPA or PA; or experienced the cancellation, revocation, 

suspension of a certificate or right to practice by any other state or foreign body? (See instructions before responding.) 

4. Are you currently practicing public accountancy? 

5. Did you complete the required total number of hours of continuing education (CE), including four hours of ethics 

education, to maintain active status? 

6. Did you complete a Board-approved, two-hour Regulatory Review course since your last renewal? 

If yes, also enter the Regulatory Review course information in PART C. 

7. GOVERNMENT CE REQUIREMENT: Are you subject to the completion of the Government CE hours? 

8. ACCOUNTING & AUDITING (A&A) CE REQUIREMENT: Are you subject to the completion of the A&A CE hours? 

9. FRAUD CE REQUIREMENT: If you answered “yes” to question 7 or 8, did you complete eight hours of Fraud CE 

specifically related to the detection and/or reporting of fraud in financial statements? 

10a. Did you become subject to the Government or A&A and Fraud CE requirement during the last six months of your two-year 

renewal period? If yes, indicate the related engagement starting date here: ________________ then go to 10b. 

10b. If you did not complete the required number of hours for the Government or A&A and Fraud CE, are you 

requesting a six-month extension to complete the required Government or A&A and Fraud CE hours? 

Attachment 1 

Rev 5/12/11 

YES NO 

ATTENTION LICENSEES WITH A CPA/PA LICENSE NUMBER ENDING IN (insert numbers) 

By signing the statement on Part B (below) and submitting this license renewal application, you are certifying that you have received and read this 

notice: if you provided accounting and auditing services as a sole proprietorship, you are required to have a peer review report accepted by a Boardrecognized 

peer review program and the peer review information must be submitted to the CBA by (insert date). Additional information regarding peer 

review can be found on the insert included with this license renewal notice and on the CBA's Web site at www.cba.ca.gov.

PART CERTIFIED PUBLIC ACCOUNTANT/PUBLIC ACCOUNTANT LICENSE RENEWAL APPLICATION 

B 

BOARD USE ONLY 

PM ____/____/____ TW TW/O DW DW/O $ __________ INT. _____ 

LICENSE NO FEE $ 2. Please complete for change of address: 

CPA IF DELINQUENT $ 

LICENSE EXPIRES / / E. Address of Record______________________________ 

1. CURRENT 

LICENSE STATUS 

I AM RENEWING 

A. ACTIVE 

B. INACTIVE 

City ____________________State_____ Zip_________ 

I hereby certify, under penalty of perjury under the laws of 

the State of California, that all statements, answers, and 

representations on this form, including supplementary 

attached hereto, are true, complete and accurate. 

D. Signature ___________________________________________ 

Date ______________________________________

PART 

C 

CONTINUING EDUCATION REPORTING WORKSHEET 

CPA (CE INFORMATION MANDATORY FOR ACTIVE LICENSE RENEWAL) 

1 2 3 4 5 6 7 

COURSE TITLE 

(For clarity, please avoid abbreviations) 

Board-approved Regulatory Review course: 

COURSE TITLE: ____________________________ 

APPROVAL NUMBER: _______________________ 

SUBJECT CODE 

(√) 

CLAIMED AS 

GOV’T CE 

HOURS CLAIMED FOR EACH SUBJECT AREA 

R 

DATE(S) 

COMPLETED 

(Course must be 

completed to list) 

REGULATORY REVIEW (technical) 

GOVERNMENT CE (technical) 

A&A CE (technical) 

FRAUD CE (technical) 

ETHICS (technical) 

OTHER TECHNICAL CE 

NON-TECHNICAL CE 

TOTAL HOURS CLAIMED: 

HOURS CLAIMED 

NAME OF PROVIDER 

If additional space is needed, this form may be reproduced. 

Subject & Method of Presentation Codes are located on the accompanying instruction sheet. 

METHOD OF 

PRESENTATION

Active Status License Renewal 

CE REFERENCE GUIDE 

Attachment 2 

ATTACHMENT 2 

Effective January 1, 2012, a total of 80 hours of CE must be completed in the two-year 

period immediately preceding license expiration, including: 

• A minimum of 20 hours completed during each year of the two-year license 

renewal period, including 12 hours in technical subject matter. 

• Four hours of ethics education. 

• A two-hour Board-approved Regulatory Review course if more than six years 

have lapsed since a Board-approved Regulatory Review or Professional Conduct 

and Ethics course was completed. 

• If subject to the Accounting and Auditing or Government Auditing CE 

requirement, as described in Sections 87(c) and 87(d) of the CBA Regulations, 

24 hours of CE as described in those sections must be completed. 

o If subject to this requirement, eight hours of Fraud CE specifically related 

to the detection and/or reporting of fraud in financial statements must be 

completed in addition to the 24 hour requirement, as described in Section 

87(e) of the CBA Regulations. 

• The remaining hours may be completed in qualifying technical or non-technical 

subject matter of the licensee’s choosing, so long as a minimum of 40 hours are 

completed in technical subject matter. 

Status Conversion 

The CE requirements for status conversion mirror the requirements for active status 

renewal with the exception of the following: 

• A minimum of 20 hours must be completed within the one-year period 

immediately preceding license status conversion, including 12 hours in technical 

subject matter.


2000 EVERGREEN STREET, SUITE 250 

SACRAMENTO, CA 95815-3832 

TELEPHONE: (916) 263-3680 

FACSIMILE: (916) 263-3672 


ACCOUNTANCY CORPORATION RENEWAL FORM 

READ THE FOLLOWING INFORMATION AND ATTACH THE NECESSARY LISTS. THE SECURITY 

FOR CLAIMS AGREEMENT ON THE REVERSE SIDE MUST BE SIGNED BY ALL SHAREHOLDERS. 

PLEASE SEND A SEPARATE CHECK OR MONEY ORDER FOR EACH RENEWAL NOTICE. 

DO NOT SEND CASH. 

MAKE PAYABLE TO: BOARD OF ACCOUNTANCY 

TYPE LICENSE NO. LICENSE EXPIRES CORPORATION NAME 

COR 

Accountancy Corporations must renew their licenses every two years per Section 5152.1 of the Business and Professions Code. This 

requirement must be complied with until such time that dissolution of the corporation has been reported to the Board. 

You are required to notify the Board in writing within 30 days of any changes of address or shareholder(s). The Board must also be notified 

of a corporation name change within 30 days. Prior approval is required before usage. If the corporation’s name has changed, you must 

contact the Board office for a Special Report form. 

All CPA/PA shareholder(s) personally engaged in the practice of public accountancy must be currently licensed in California or be licensed 

to render the same professional services in the jurisdiction or jurisdictions in which the shareholder practices. Refer to Section 5154 of the 

Business and Professions Code. 

A resident manager who is in charge of an office in California must be a certified public accountant or a public accountant in good standing 

of this State, in accordance with Section 5158 of the Business and Professions Code. A resident manager may be appointed by the 

shareholder(s). 

At the time of renewal, the corporation shall submit a new Security for Claims Against Corporation Agreement pursuant to Section 75.8 of 

Title 16 of the California Code of Regulations. 

THE FOLLOWING LISTS MUST BE ATTACHED WITH THIS REPORT. 

□ A list of all CPA/PA shareholder(s). This list shall include full name, license number, and expiration date. 

□ A list of all non-CPA/PA shareholder(s). This list shall include the full name and date of birth of each non-CPA shareholder. 

□ A list of all CPA/PA shareholder(s) disassociated from the firm during the previous two years. This list shall include the full name, 

license number and date of disassociation. 

□ A list of all non-CPA/PA shareholder(s) disassociated from the firm during the previous two years. This list shall include full 

name, date of birth and date of disassociation. 

□ THE SHAREHOLDER SECURITY FOR CLAIMS AGAINST CORPORATION AGREEMENT RENEWAL REPORT ON THE REVERSE 

SIDE MUST BE SIGNED BY ALL SHAREHOLDERS. 

ANY DISCREPANCIES RELATED TO THE LICENSE STATUS OF CPA/PA SHAREHOLDERS MAY RESULT IN THE SUSPENSION, 

REVOCATION, OR REFUSAL TO RENEW THE CORPORATION LICENSE CERTIFICATE (B & P CODE, ARTICLE 6, SECTIONS 

5100(f), 5152, AND 5152.1.) 

Your firm’s license will expire at midnight on the expiration date as shown at the bottom of this renewal 

notice. If this renewal notice and the renewal fee are not postmarked by the expiration date, practice 

rights will terminate until the license is renewed. 

ATTENTION ACCOUNTANCY CORPORATIONS WITH A LICENSE NUMBER ENDING (insert numbers) 

By signing the statement on Part B (below) and submitting this license renewal application, as an officer 

and licensed shareholder of the corporation, you are certifying that you have received and read this 

notice: if your firm provided accounting and auditing services, it is required to have a peer review report 

accepted by a Board-recognized peer review program and the peer review information must be submitted 

to the CBA by (insert date). Additional information regarding peer review can be found on the insert 

included with this license renewal notice and on the CBA's Web site at www.cba.ca.gov.

BOARD OF ACCOUNTANCY 

BOARD USE ONLY 

PM ____/____/____ T D $ __________ INT. _____ 

LICENSE 

NUMBER 

REGISTRATION RENEWAL NOTICE 

CPA/PA ACCOUNTANCY CORPORATION 

I, as an officer of this corporation, make this declaration and subscribe heretofore and on behalf of the 

Corporation. I declare that I have read and know the contents of the foregoing renewal and all statements 

thereof. I further declare that, to the best of my knowledge, the contents of the same are true. 

Authorized Shareholder Signature Date 

LICENSE 

EXPIRES AMOUNT DUE 

COR $ 

ACTIVE 

AMOUNT DUE IF 

POSTMARKED AFTER 

$ 

PLEASE COMPLETE FOR ADDRESS CHANGE ONLY 

MAILING ADDRESS 

CITY STATE ZIP 

DAYTIME PHONE ( ) 

CONTACT PERSON 

The information on this application is required and maintained pursuant to Section 5000 and 5157 i nclusive of the Business and Professions Code. All 

items in this application are mandatory, none are voluntary. Failure to provide any of the required information will result in the application being rejected 

as incomplete. The information provided will be used to determine qualification for an accountancy corporation. The information may be transferred to 

another governmental agency such as a l aw enforcement agency if necessary for it to perform its duties. A pplicants have the right to review their 

applications subject to the provisions of the California Public Records Act. The information contained on the application form itself is a public record and 

may be released to any person upon request. 

Notice: The information provided in this form will be used by the California Board of Accountancy, to determine qualifications for a Certified Public 

Accountant/Public Accountant License Renewal. Sections 5009, 5026 through 5029, 5060, 5070 through 5079, and 5150 through 5158 of the Business and 

Professions Code authorize the collection of this information. Failure to provide any of the required information is grounds for rejection of the form as being 

incomplete. Information provided may be transferred to the Department of Justice, a District Attorney, a City Attorney, or to another government agency as 

may be necessary to permit the Board, or the transferee agency, to perform its statutory or constitutional duties, or otherwise transferred or disclosed as 

provided in Civil Code Section 1798.24. Each individual has the right to review his or her file, except as otherwise provided by the Information Practices Act. 

The Executive Officer of the California Board of Accountancy is responsible for maintaining the information in this application, and may be contacted at 2000 

Evergreen Street, Suite 250, Sacramento, CA 95815, telephone number (916) 263-3680 regarding questions about this notice or access to records.

SHAREHOLDER SECURITY FOR CLAIMS AGAINST CORPORATION AGREEMENT 

Section 75.8 of California Accountancy Act with Rules and Regulations states: 

A) An accountancy corporation shall provide and maintain adequate security for claims against it by its clients arising 

out of the rendering of, or failure to render, professional services. Security for such claims shall consist of either of 

the following: 

(1) Insurance for each claim in an amount equal to at least $100,000 per licensee, provided that the maximum 

amount for each claim shall not be required to exceed $1,000,000, and that the minimum amount guaranteed for all 

claims during any one calendar year shall be at least an amount equal to $250,000 per licensee, provided that the 

maximum amount shall not be required to exceed $3,000,000; or 

(2) A written agreement of the shareholder(s), that they shall jointly and s everally guarantee payment by the 

corporation of liabilities to its clients arising out of the rendering of or failure to render professional services. 

B) In the event of failure to comply with the requirements of this section, each and every shareholder of the corporation 

shall be deemed to have agreed to be jointly and s everally liable for claims against the corporation by its clients 

arising out of the rendering of, or failure to render, professional services. 

PLEASE BE ADVISED, YOU MUST COMPLETE ONE OF THE FOLLOWING DECLARATIONS. 

We, the undersigned, are the shareholder(s) of 

ALTERNATIVE #1 

(herein “Corporation”). 

We the shareholder(s) certify that the corporation has insurance in the amount specified in Section 75.8 (A) (1). 

Executed this day of , 20 . 

ALTERNATIVE #2 

CPA/PA Shareholder(s) Non-CPA/PA Shareholder(s) 

We, the shareholder(s) agree to jointly and severally guarantee payment by the corporation of liabilities to its clients arising out of the rendering 

of, or failure to render, professional services. 

Executed this day of , 20 . 

CPA/PA Shareholder(s) Non-CPA/PA Shareholder(s) 

11R-11 (Rev 5/12/1

PART 

1 




TELEPHONE: (916) 263-3680 

FACSIMILE: (916) 263-3675 


PARTNERSHIP RENEWAL NOTICE 

FILL IN THE FOLLOWING INFORMATION. RETAIN PART 1 FOR YOUR 

RECORDS. RETURN PARTS 2 & 3 TO THE ADDRESS SHOWN ABOVE. 

****** I M P O R T A N T ****** 

PLEASE SEND A SEPARATE CHECK OR MONEY ORDER FOR EACH RENEWAL NOTICE. 

MAKE PAYABLE TO: BOARD OF ACCOUNTANCY 

TYPE LICENSE NO LICENSE EXPIRES RENEWAL FEE PAID OUR CHECK NO. 

PAR 

Partnerships must renew their licenses every two years per Section 5070.5 of the Business and Professions Code. This 

requirement must be complied with until such time that dissolution of the partnership has been reported to the Board. 

You are required to notify the Board in writing within 30 days of any changes of address or partner(s). The Board must also be 

notified of a partnership name change within 30 days. Approval by the Board is required before usage of the new name. If the 

partnership’s name has changed, you must contact the Board office for a Partnership Name Change Application. 

All CPA/PA partner(s) personally engaged in the practice of public accountancy must be currently licensed in California or be 

licensed to render the same professional services in the jurisdiction(s) in which the partner practices. Refer to Section 5072(b) 

of the Business and Professions Code. 

The names of all current partner(s) (CPA/PA and non-licensees), and the state(s) in which they hold a license to practice, must 

be provided with this report. 

A resident manager who is in charge of an office in California must be a certified public accountant or a public accountant in 

good standing of this State, in accordance with Section 5072(d) of the Business and Professions Code. A resident manager 

may be appointed by the partner(s). 

Renewing on time: Your firm’s license will expire at midnight on the expiration date as shown in PART 1 of the renewal NOTICE. If 

the renewal NOTICE and the renewal fee are not postmarked by the expiration date, practice rights terminate until the licensed is 

renewed. 

DETACH HERE. RETAIN PART 1 FOR YOUR RECORDS. ALLOW 6-10 WEEKS FOR PROCESSING YOUR RENEWAL 

PART THE FOLLOWING LISTS MUST BE ATTACHED. 

2 

A list of all CPA/PA partner(s). This list shall include full name, license number, state, and expiration date. 

A list of all non-CPA/PA partner(s). This list shall include the full name and date of birth of each non-CPA/PA partner. 

A list of all CPA/PA partner(s) disassociated from the firm during the previous two years. This list shall include the full 

name, license number, and date of disassociation. 

A list of all non-CPA/PA partner(s) disassociated from the firm during the previous two years. This list shall include full 

name, date of birth, and date of disassociation. 

ANY DISCREPANCIES RELATED TO THE LICENSE STATUS OF CPA/PA PARTNER(S) MAY RESULT IN THE SUSPENSION, REVOCATION, OR 

REFUSAL TO RENEW THE PARTNERSHIP LICENSE CERTIFICATE (B & P CODE, ARTICLE 6, SECTIONS 5100(f), AND 5101.) 

ATTENTION ACCOUNTANCY PARTNERSHIPS WITH A LICENSE NUMBER ENDING IN (insert numbers) 

By signing the statement on Part B (below) and submitting this license renewal application, as a licensed partner in the 

accounting firm, you are certifying that you have received and read this notice: if your firm provided accounting and auditing 

services, it is required to have a peer review report accepted by a Board-recognized peer review program and the peer review 

information must be submitted to the CBA by (insert date). Additional information regarding peer review can be found on the 

insert included with this license renewal notice and on the CBA's Web site at www.cba.ca.gov.

THE FOLLOWING CERTIFICATION MUST BE SIGNED BY A PARTNER. I certify, under penalty of perjury under the laws of the State of California, that 

all partners engaged in practice in California are duly licensed to practice public accounting in the State of California and that all statements, 

answers and presentations in this application including supplementary statements attached hereto, are true and accurate. 

Authorized Partner Signature Date 

BOARD OF ACCOUNTANCY 

LICENSE 

NUMBER 

PAR 

ACTIVE 

11E-19 (Rev. 5/12/11) 

LICENSE 

EXPIRES 

RENEWAL APPLICATION 

CERTIFIED PUBLIC ACCOUNTANT PARTNERSHIP 

AMOUNT 

DUE 

$ 

AMOUNT DUE IF 

POSTMARKED AFTER 

E. PLEASE COMPLETE FOR ADDRESS CHANGE ONLY 

MAILING ADDRESS 

CITY STATE ZIP 

DAYTIME PHONE ( ) 

CONTACT PERSON

CBA MEMBERS 

Oldman, Marshal, Esq., President 

LaManna, Leslie, CPA, Vice President 

Savoy, Michael, CPA, Sec./Treasurer 

Anderson, Sally, CPA 

Bell, Diana L. 

Berhow, Alicia 

Brough, Michelle R., Esq. 

Driftmier, Donald A., CPA 

Elkins, Herschel T., Esq. 

Kaplan, Larry 

Kirkbride, Louise 

Leung, K.T., CPA 

Ramirez, Manuel, CPA 

Swartz, David L., CPA 

Vacant 

Staff: 

Daniel, Veronica (916) 561-1716 

SPC 

LaManna, Leslie, CPA, Chair 

CBA COMMITTEES 

CPC – Committee on Professional Conduct 

EPOC – Enforcement Program Oversight Committee 

LC – Legislative Committee 

SPC – Strategic Planning Committee 

ADVISORY COMMITTEES 

EAC – Enforcement Advisory Committee 

ECC – Ethics Curriculum Committee 

PROC – Peer Review Oversight Committee 

QC – Qualifications Committee 

EPOC – Enforcement Program Oversight Committee 

LC – Legislative Committee 

CBA AND COMMITTEE MEMBER ROSTER 

Revised January 18, 2012 

CPC 

Savoy, Michael M., CPA, Chair 

Anderson, Sally, CPA 




LaManna, Leslie, CPA 


Staff: 

Stanley, Matthew (916) 561-1792 

EAC 

Gerhardt, Cheryl, CPA, Chair 

Rider, James, CPA, Vice Chair 

Buniva, Joseph P., CPA 

Caine, Gary S., CPA 

Caras, Mary Rose, CPA 

De Lyser, K. Jeffrey, CPA 

Lee, Robert A., CPA 

McCulloch, Mervyn J., CPA 

Petray, James P., CPA 

Sadat, Seid M., CPA 

Schwarz, Michael J., CPA 

Vacant 

Vacant 

CBA Member Liaisons: 

Kirkbride, Louise (North) 

LaManna, Leslie, CPA (South) 

Staff: 

Nightingale, Allison (916) 561-1721 

Santaga, Michele (916) 561-1728 

EPOC 

Bell, Diana L. 

Berhow, Alicia 

Brough, Michelle R., Esq 



Leung, K.T., CPA 


Staff: 

Santaga, Michele (916) 561-1728 

ECC 

Driftmier, Donald A., CPA, Chair 

Freixes, Gonzalo 

McBride, Gary, CPA 

Mikkelsen, Jon 

Pieroni, Gary 

Ueltzen, Michael, CPA 

Yetman, Robert, CPA 

Vacant 

Vacant 

Vacant 

Staff: 

Fuller, Cindi (916) 561-4367 

PROC 

Corrigan, Nancy J., CPA, Chair 

Allanson, Katherine, CPA 

Bong, Gary, CPA 

Lam, T. Ki, CPA 

Lee, Robert, CPA 

McCoy, Sherry, CPA 

Sadat, Seid M., CPA 

Staff: 

Freeman, April (916) 561-1720 

LC 

Anderson, Sally, CPA, Chair 

Savoy, Michael M., CPA 

Bell, Diana 


Kaplan, Larry 


Ramirez, Manuel, CPA 

Staff: 

Stanley, Matthew (916) 561-1792 

QC 

Hinojosa, Fausto, CPA, Chair 

Eckley, Maurice Jr., CPA, Vice Chair 

Aguila, Carlos, CPA 

Bolsky, Joanna, CPA 

Bong, Gary, CPA 

Cates, Brian, CPA 

Haas, Michael, CPA 

Hester, Charles, CPA 

Lee, Alan, CPA 

Mapes, Kris, CPA 

Moore-Hudnall, Casandra, CPA 

Ruehl, Robert, CPA 

Shenouda, Ash W., CPA 

Smith, Jeremy, CPA 

Woyce, James, CPA 

Vacant 

CBA Member Liaisons: 

Bell, Diana L. (North) 

TBD (South) 

Staff: 

Hoffman, Stephanie (916) 561-1743

Presented by: Michael Savoy 

Date: January 6, 2012 

Discussion of the Governor’s Budget 

CBA Item III. 

January 26-27, 2012 

Purpose of the Item 

The narrative provides an overview of the FY 2012-13 Governor's Budget as it applies 

to the CBA. 

Action Needed 

No specific action is required on this agenda item. 

Background 

The FY 2012-13 Governor's Budget was recently released and minor changes in CBA's 

budget for FY 2012-13 include increased departmental distributed pro-rata, additional 

Breeze costs, and higher retirement rate expenses. These adjustments amount to over 

$130,000 in expenditure increases compared to the FY 2011-12 budget. The total 

proposed CBA budget for FY 2012-13 is $11,288,000. 

The new CBA budget includes the elimination of four positions. Three Office 

Technicians and one Associate Governmental Program Analyst were eliminated 

through a budget change proposal to finalize the Governor's Workforce Cap Plan. The 

Workforce Cap Plan was issued as an Executive Order in January 2010 to achieve an 

additional five percent salary savings for all departments. Elimination of the funding for 

these positions already occurred in prior versions of the budget. 

Details of the revised FY 2011-12 and proposed 2012-13 CBA budget can be accessed 

from the Department of Finance website at 

http://www.ebudget.ca.gov/StateAgencyBudgets/1000/1110/department.html 

Comments 

None 

Recommendation 

Staff has no recommendation on this item. 

Attachments 

None

State of California California Board of Accountancy 

Department of Consumer Affairs 


Sacramento, CA 958"1 5-3832 

Memorandum. 

CBA ITEM IV.A. 

January 26-27, 2012 

To CBA Members Date : January 9, 2012 

From 

Subject: SACK, SILVER DOLLAR - Case No. Sl-2012-26 

Petition for Reinstatement of Revoked Certificate 

Certificate No. CPA 27047 

Bakersfield, California 

Telephone (916)561-1731 

Facsimile (916) 263-3673 

E-mail rixta@cba.ca.gov 

The above-referenced Petition for Reinstatement of Revoked Certificate has been 

scheduled for hearing on January 26, 2012 at the January 26-27, 2012 California 

Board of Accountancy (CBA) meeting. 

Deputy Attorney General Carl Sonne will represent the Attorney General's Office. 

In addition, the Office of Administrative Hearings will assign an Administrative Law 

Judge to preside at the hearing, as well as a court reporter to capture a record of 

the discussion. 

The following documents are attached for your reference. 

1. Petition for Reinstatement of Revoked Certificate. (ATTACHMENTS 

SDS-PET004-013) 

·2. First Amended Accusation No. AC-2004-35, dated June 6, 2005. 

(ATTACHMENTS SDS-PETOG0-079) 

3. Stipulated Settlement and Disciplinary Order No. AC-2004-35, effective 

August 26, 2005. (ATTACHMENTS SDS-PETOB0-086) 

4. Decision in the Matter of the Petition for Reinstatement of Revoked Certificate, 

dated August 15, 2007. (ATTACHMENTS SDS-PET087-089) 

5. Certification of License History. (ATTACHMENTS SDS-PET090-091) 

REPRESENTATION 

Mr. Sack will appear at the hearing with his legal counsel, Barry L. Goldner. 

SDS-PET001

Sack, Silver Dollar- Petition for Reinstatement 

Page 2 

CAUSE FOR DISCIPLINE 

First Amended Accusation No. AC-2004-35 charged Mr. Sack with embezzlement, 

misappropriation of funds, obtaining money by fraud or false pretenses, fiscal 

dishonesty, and breach of fiduciary duty. The basis for the charges involves 

accounting services Mr. Sack provided for a client and the client's business for 

28 years. Mr. Sack's services were terminated in early 2003 after the client 

determined that for several years Mr. Sack had been making check disbursements 

directly to himself or for his personal benefit and making false entries in the 

accounting records of his client. Mr. Sack's misconduct included: 

• Preparation of fraudulent financial reports and information in order to conceal 

the mishandling of his client's funds; 

• Preparation of inaccurate Forms 1099 for his client by failing to account for the 

unauthorized payments to himself; and 

• Failure to accurately record monies paid as accounting fees or otherwise, 

resulting in misstated financial statements. 

Settlement negotiations were initiated between the client and Mr. Sack, and a 

settlement agreement was executed that required Mr. Sack to pay the client 

$200,000 for the mishandling of the client's funds. (ATTACHMENTS 

. SDS-PET017-022) 

CODE VIOLATIONS 

• California Business and Professions Code, Division 3, Chapter 1, Sections 

5037(b), 5100, 51 OO(c), (g), (i), (j), and (k). 

• California Code of Regulations, Title 16, Division 1, Sections 63, 67, and 68. 

ADDITIONAL INFORMATION FOR CONSIDERATION 

• Reimbursement of Investigation and Prosecution Costs 

Stipulated Settlement and Disciplinary Order No. AC-2004-35 ordered that 

Mr. Sack pay investigation and enforcement charges in the amount of $57,500 

before petitioning for reinstatement of his revoked certificate. Mr. Sack paid 

these costs on April 19, 2007. 

• Registered Tax Preparer 

Mr. Sack is registered as a tax preparer through October 31, 2012 with the 

California Tax Education Council (CTEC) {ATTACHMENT SDS-PET014-015). A 

copy of CTEC's Web site status report is attached (ATTACHMENTS 

SDS-PET058-059). 

SDS-PET002

Sack, Silver Dollar- Petition for Reinstatement 

Page 3 

• Notary Public 

Mr. Sack has been commissioned as a Notary Public in California for the period 

October 17, 2010 through October 16, 2014 (ATTACHMENT SDS-PET016). 

• Continuing Professional Education 

Mr. Sack submitted certificates of completion in support of 94 hours of 

continuing education (ATTACHMENTS SDS-PET023-033) completed during the 

period July 2010 to September 2011 on the Continuing Education Worksheet in 

the following areas. 

• 4 hours in ethics. 

• 2 hours in regulatory review. 

• 10 hours in fraud. 

• 56 hours in tax. 

• 22 hours in accounting and auditing. 

• Letters of Recommendation 

Mr. Sack submitted 18 letters of recommendation (ATTACHMENTS 

SDS-PET034-057) with his petition, including one letter (ATTACHMENT SDS 

PET035) from McCoy Dean Haddock, Psy.D., who holds a current license with 

the California Board of Psychology. 

Rl:mls 

SDS-PET003

STATE OF CALIFORNIA - STATE AND CONSUMER SERVICES AGENCY GOVERNOR EDMUND G. BROWN JR. 

C,\[.IFORNJA 1\01\RD OF 

ACCOUNTANCY 

TO WHOM IT MAY CONCERN: 

DEPARTMENT OF CONSUMER AFFAIRS 




TELEPHONE: (916) 263-3680 

FACSIMILE: (916) 263-3675 

WEB ADDRESS: http://www.cba.ca.gov 

The undersigned shares in the custody and control of the files and records of this 

agency and hereby certifies that the attached document is a true and correct copy of 

the original or the original copy of the Petition for Reinstatement of Revoked Certificate, 

dated Octoqer 11, 2011, from SILVER DOLLAR SACK contained in the files of this 

office, and said documents were received in the normal course of business. 

December 14, 2011 

SDS-PET004 

Paul Fisher 

Supervising Investigative CPA 

Enforcement Division 



State of California

Michele Santaga 

From: Marianne Brown [mbrown@ kleinlaw.com] 

Sent: Friday, December 02, 2011 2:05 PM 

To: Michele Santaga 

Cc: Barry Goldner; Simona Hayes; Marianne Brown 

Subject: Petition for Reinstatement: Silver Sack 

Dear Ms. Santaga: 

As you know, our firm represents Silver Sack with regard to his Petition for Reinstatement of 

Revoked Certificate. This is to confirm that we are in receipt of your letter dated November 28, 

2011, which provides notification of the scheduled petition hearing. With regard to your 

question as to whether a letter from Dean Haddock was omitted from the Petition, I have been 

advised by our client that the Petition is complete as submitted. There is no additional letter to 

be provided. 

Please feel free to contact me if you have any questions. Thank you for ymu assistance. 

Yours truly, 

.Mwtianne [}J!UJWn 

Legal Secretary to Barry L. Goldner 

Klein, DeNatale, Goldner, Cooper, Rosenlieb & Kimball, LLP 

4550 California Ave., 2nd Floor IBakersfield, California 93309 

Tel: 661.395.1000 IDirect: 661.328.53931 Fax: 661.395.14091 MBrown@KleinLaw.com 

The contents of this e-mail message, including any attachments, are intended solely for the use of 

the person or entity to which the e-mail was addressed. It contains infon11ation that may be 

protected by tbe attorney-client privilege, work-product doctrine, or other privileges and may be 

restricted from disclosure by applicable state and federal law. If you are not the intended 

recipient of this message, be advised that any dissemination, distribution, or use of the contents 

of this message is strictly prohibited. If you received this e-mail message in enor, please e-mail 

MBrown @KleinLaw.coni and contact the sender by reply e-mail. Please also permanently delete 

all copies of the original e-mail ancl any documentation. · 

i ?/F.!?Oi i 

SDS-PET007 

Page i of i

PETITION FOR: Reinstatement ofRevoked Certificate 

Re: Silver D. Sack 

October 11,2011 


ATTACHMENT 7 

7. Explain why you believe your petition should be granted. Include what aspects of 

your rehabilitation you believe will protect against a re-occurrence of your prior 

conduct. 

Response 

The loss of my CPA license has had a profound impact on me both personally and 

professionally. When this matter first carne to light, I made full restitution to Ryan 

Jeffries in February 2003. Initially, I rationalized my behavior and had some 

difficulty accepting full responsibility for my improper actions. Following the 

accusation filed by the California Board of Accountancy ("the Board"), I stipulated to 

the revocation of my accounting license. The stipulation was signed on July 14, 

2005. The revocation of my license was effective July 22, 2005. 

In April2007, I paid the sum of $57,500 to the Board and paid the full amount 

payable, pursuant to the Stipulated Settlement Order that was adopted by the Board 

on July 22, 2005. 

Also in April 2007, I applied for reinstatement of my license. My application for 

reinstatement was heard by the Board on July 20, 2007. My petition was denied on or 

about August 15, 2007. I was also informed that I needed to wait three years before 

re-applying for reinstatement. 

When this matter first arose, I was 53 years old. Up until that time in my life, I never 

had any issue of professional misconduct and had a spotless record. When the Board 

pursued formal action against my license, there were articles in our local newspaper 

(The Bakersfield Californian) as well as reports on television and on the radio. My 

conduct led to the most embarrassing and humiliating period in my life. 

Fortunately, my family was very supportive. My friends and professional colleagues 

were also supportive and helped me in many ways. 

Today, I am 62 years of age. It has been very important to me to recover my sense of 

self and to reclaim my self esteem. Recovering my accounting license has been very 

important to me both personally and professionally. It is a symbol for me that I have 

recovered from the improper actions that I engaged in more than 10 years ago. 

The processes that I have gone through have force me to confront the gravity ofmy 

conduct. I have acknowledged and accepted full responsibility that I committed acts 

of dishonesty. Frankly, because of my spotless record and high ethical standards, I 

did not even consider the possibility that I could engage in actions or activities that 

35R8273 

5 

SDS-PET012

LICENSE INFORMATION 

PETITION FOR: Reinstatement of Revoked Certificate 

Re: Silver D. Sack, CPA License No. 27047 

SDS-PET014

ATTACHMENT 3 

RESTITUTION 



SDS-PET017

ATTACHMENT 4 

CONTINUING EDUCATION 

REPORTING WORKSHEET 

PETITION FOR: Reinstatement of Re.voked Certificate 


SDS-PET023

Certi lcate 

This will certify that 

SILVER D. SACK 

JULY 11,2011 

Completion Date 

has successfully completed 

Individual Income Tax 

20 hours 

( 1 0 hours federal, 3 hours update, 2 hours ethics, 5· hours state) 

CTEC Course Number: 1023-CE-0001 

Peter Yip, EA 

Golden City Professional Studies 

Goldtax Inc 

P 0 Box 7125, Alhambra, CA 91802 

2550 W. Main Street, Suite 105, Alhambra, CA 91801 

626-457-8836 

SDS-PET031

Certi zcate 

This will certify that 

SILVER D. SACK 

has successfully completed 

Individua1...Income Tax 

13 hours federal, 5 hours state, 2 hours ethics 

CTEC Course Number: 1 023-CE-0001 

{(c?--· 

JULY 2.8, 2010 

{ Thomas Yip 

Completion Date Golden City Professional Studies 

Gold tax Inc 

P 0 Box 7125, Alhambra, CA 91802 

2550 W. Main Street, Suite 105, Alhambra, CA 91801 

626-457-8836 

SDS-PET032

LETTERS OF 

RECOMMENDATION 



SDS-PET034

July 18, 2011 

Community Counseling and Psychoiogica[ Services 

Dean Haddock, Psy.D. inc. 

P.O. Box 82096 

4900 California Avenue 330"8 

Bakersfield, CA 93380 

(661 )326-8167 FAX (661 )326-8221 

· California Board of Accountancy 

· . 2000 Evergreen Street, Suite 250 

Sacramento, CA 95815-3832 

I have known Mr. Sack since 1984 and can attest that he is a dedicated husband, father 

and professional. He has successfully completed counseling with me primarily focused on 

Assertive Training with difficult demanding clients. We also addressed decision making 

in regard to professional ethics and behavior. 

He continues to have a favorable professional and personal reputation in our community. 

It is my professional clinical opinion that he has learned from this experience ofdifficulty 

with his license and the aftermath of his professional decisions that were brought before 

your esteemed licensing Board. He continues to be remorseful for the professional 

activities that caused his Certified Public Accounting license to be challenged. 

I hope that your AccountancyBoard will consider reinstating Mr. Sack's license. Please 

do not hesitate to contact me if further information is needed . 

..1declare under a penalty of perjury of the State of California that the foregoing and my 

attachments are true and correct. 

Sincerely, 

McCoy Dean Haddock, Psy.D., ABMP, BCFE, BCME, ABDA 

Clinical Psychologist PSY 8536 o\4,..< 

Diplomate American Board of Medical Psychotherapists and Psychodiagnosticians 

American Board of Forensic Examiners 

American Board of Forensic Medical Examiners 

American Board of Disability Analysts 

Life Fellow American College of Forensic Examiners [5845] 

cc: file # my doc Sack Silver 

SDS-PET035

PERSONAL 

Community Counseling and Psychological Services 

Dean Haddock, Psy.D. inc. 

P.O. Box 82096 

4900 California Avenue 330-B 


(661}326-8167 FAX (661)326-8221 

VITA 

Name: McCoy Dean Haddock 

EDUCATION 

09/77 - 04/82 Rosemead School of Psycho,logy, Biola University 

La Mirada, California 

06/79 M.A. Clinical Psychology 

04/82 Psy.D. Clinical Psychology 

01/74- 09/77 California State University, Bakersfield 

06/76 Degree: B.A. Psychology with minor in 

Business/Public Administration 

M.A. Candidate Clinical Psychology 

09/72- 01/74 Cuesta College, San Luis Obispo, California 

01/74 Degree: A.A. Psychiatric Technology 

09/70 - 06/72 Bakersfield College, Bakersfield, California. 

45 units Pre-Professional . 

CLINICAL EXPERIENCE 

06/84-Present Licensed Clinical Psychologist 

California PSY 8536 · 

Hawaii 416 

06/84 - 04/85 Out-Patient Department, 

Kern County Mental Health 

07/82-Present Executive Director: Chief Psychologist 

Community Counseling and Psychological Services 

[private clinical/forensic/neuropsych practice] 

HONORS AND ACTIVITIES 

Member of Gamma Gamma Sigma Scholarship Honor Society 

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SDS-PET036

Advanced Certification Critical Incident Stress Management 

Kern County Deputy Sheriff (Reserve Badge 2009 Retired) 

Forensic Clinical Psychologist Department of Corrections and Rehabilitation 

Mental Health Director Chief Psychologist at Corcoran State Prison 1999 

. (Retired 2009) 

Oral Licensing Examiner: Board of Psychology-State of California 

[1990-2000] 

Sexually Violent Predator Expert, California Department of Mental Health 

Diplomate and Fellow: American Board of Medical Psychotherapists and 

Psychodiagnosticians 

Diplomate and Fellow: American Board of Forensic Examiners 

Diplomate and Fellow: American Board of Forensic Medical Examiners 

Diplomate American Board of Disability Analysts: Senior Analyst 

Life Fellow: International Society of Police Surgeons 

Life Fellow: American College of Forensic Examiners 

PUBLICATIONS 

Haddock, M.D., Penningroth, B & Grabski, D. Psychiatric Technicians in the 

Emergency Room: A Three Year Follow-Up. American Journal of 

Psychiatry, April1977, Washington, D.C. 

Haddock, M.D. & McQueen, W.M. Hyperkinesis as a precipitator of child abuse: 

A Literature review. 1982 Proceedings:National Association of School 

Psychologists, Toronto, Ontario, Canada, 1982, 214-215. 

Haddock, M.D. & McQueen, W.M. Assessing employee potentials for abuse of 

children. Journal of Clinical Psychology, 1983, 39, 1021-1029. 

Haddock, M.D. Danger on the internet. Psychology For Living, 1999, 14. 

Numerous newspaper and magazine articles and interviews 

TEACHING EXPERIENCE 

Professor of Marriage, Family & Child Counseling: Azusa Pacific University, 

1983-1986 

Abnormal Psychology 

Measurement and Assessment 

Professor of Psychology-Summit Bible College 

Professional Ethics in Counseling and Psychology. 

Christian Counseling. 

Families In Crisis: Counseling Families Across Stages of Life. 

Clinical Professor, Rosemead Graduate School of Psychology Biola University. 

Professor of Psychology- William Lyons University (1988-1992). 

Instructor- Chapman College, Continuing Education for Teachers. 

Didactic Therapist for students of: 

Social Work/Marriage, Family & Child Counseling/Clinical Psychology. 

Seminars and classes for numerous Churches and Civic Organizations. 

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SDS-PET038

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Supervise Peer Counseling Program for Kern County Sheriff's Department. 

Trainer Kern County Fire Department Stress Management Class: Fire Academy. 

FORENSIC EXPERIENCE (Current) 

Hearing Officer for Kern County: Probable Cause for Certification 

Kern County Board of Supervisors Appointment 

Qualified as Expert Witness - Superior Courts of California, Indiana, Montanna 

Counties of Alameda, Fresno, Kern, Los Angeles, Orange, Riverside, San 

Bernardino, San Diego, San Luis Obispo, Santa Barbara, Tulare, Ventura 

Juvenile Court/Adult Court 

Qualified as Expert Witness U.S. District Court Los Angeles/Fresno 

Qualified as Expert Witness States of Indiana, Hawaii, Wyoming 

Contract Psychological Evaluations - Kern County Probation Department 

Contract Psychological Evaluations - Kern County District Attorney's Office 

Contract Psychological Evaluations - Kern County Office of the Public Defender 

Contract Family Custody Evaluation - Kern County Human Services Department 

Contract Conservatorship Evaluations - Kern County Mental Health Department 

Contract Medical Advisor - Department of Health and Human Services, Social 

Security Administration 

Contract Provider-Kern Regional Center 

Contract Clinical Psychologist [Sexually Violent Predator] 

Welfare & Institutions Code 6600 

California Department of Mental Health and California Department of 

Corrections 

Private Confidential Third Party, Competency and Insanity Evaluations 

HOSPITAL PRIVILEGES 

Courtesy Medical Staff - Department of Psychiatry of Kern Medical Center 

Teaching Hospital (UCLA, U"C. Irvine) 

Active Medical Staff- Memorial Center for Behavioral Health . 

[ 1986-2000] (Medical Staff President -1993) 

Active Medical Staff-Good Samaritan Hospital [Vice Chair Psychiatric 

Department 2004/2005] 

References available upon request. 

07/2011 

SDS-PET039 

4

J.W. KEMP 

CERTIFIED PUBLIC ACCOUNTANT 

2200 19rH STREET 

JERRY KEMP, CPA BAKERSFIELD. CALIFORNIA 93301-3609 MEMBER 

TELEPHONE 661-323-2555 CALIFORNIA SOCIETY OF 

FAX 661-323-1328 

email: )erry®)wkempcpa.net 

CERTIFIED Puouc AccoUhiTANTS 




RE: Silver D. Sack 

To Whom It May Concern: 

July 18, 2011 

The purpose of this letter is to support the reinstatement of the license of Silver 

D. Sack. I have known Mr. Sack for 25 years and have found that he is a knowledgeable 

and competent accountant. I highly recommend the reinstatement of his accounting 

license at this time. 

I appreciate the board taking the time to read this letter. 

"I declare under the penalty of perjury under the laws of the state of California that the 

foregoing and my attachments, if provided, are true and correct." 

JWK/ss 

SDS-PET042 

Date//

David W. Robinson----------------- 

615 Acacia Street, Shafter, CA 93263 (661)746-4358 

September 6, 2010 





Silver D. Sack has asked me to write this letter ofrecommendation for reinstatement of his CPA 

license. As a retired CPA, (Ca. CPA License No. 24394) who has known Silver and his firm 

Mickey Casanova and Sack for more than 30 years, I am very happy to write this letter. 

Silver worked for Mickey Casanova CPA's, one ofthe oldest and well-respected firms in 

Bakersfield until he became a partner. In the years after he became a partner, Silver has been. 

very active in Bakersfield and the accounting community. He has always had a good reputation 

as a very conscientious and professional CPA. 

I believe the California Board of Accountancy would be very well served to reinstate Silver D. 

Sack's California CPA license. 

If I can be of further assistance, please feel free to call. 

Very truly yours, 

David W. Robinson 

SDS-PET043

July 12, 2011 


EAST BAKERSFIELD HIGH SCHOOL 

2200 QUINCY STREET 

BAKERSFIELD, CALIFORNIA 

93306-4097 

(661) 871-7221 

FAX (661) 872-6980 

www.khsd.k12.ea.us/east 

LIBRADO "LEE" VASQUEZ, PRINCIPAL 

KERN HIGH SCHOOL DISTRICT 

BOARD OF TRUSTEES 

J, Bryan Batey 

Martha Miller 

William R. Perry, Ed,D. 

Chad Vegas 

Mike Williams 

SUPERINTENDENT 

Donald E. Carter, Ed.D. 

Finding private sector partners for education is not an easy task. Not many individuals/companies from the private sector 

have the time, energy or the ability to help the educational sector. However, the contributions of these partners are 

becoming more and more essential in the educational process. For the past fifteen years, the Kern High School District and 

its students have been honored with a strong and loyal advocate who cares about the students as well as their families. Mr. 

Silver Sack gives his time in order maintain and foster the involvement of business professionals in assisting educational 

needs. His management allows these professionals to be involved in a manner that is an effective, so that they can 

contribute time and resources to assist at-risk students with a wide range of needs. He has providedmentors for students, 

he actively solicits items for food and/or clothing drives, and he regularly communicates with school personnel in order to 

be proactive in determining and assisting with needs. His organizational input while designing the East Bakersfield High 

School Student Outreach Program has been a major factor in its ongoing success. 

For the past seven years, Mr: Sack has been an active member of the East Bakersfield High School Site Council. His 

leadership and sound business advice is both appreciated and respected. Personally, Mr. Sack manages my family's 

finances, and without reservation, I recommend him and his services to others. He is a person I trust and have full 

confidence in. I know he will always do what is correct for my family. And, I know he will always do what is right for the 

students and staff at East Bakersfield High School. 

I respectfully ask The Board of Accountancy to grant his petition for reinstatement of his C.P.A license .. 

Please fill free to contact me anytime at 661-871-722i@ extension 72182 

Sincerely, 

Robert Moncada 

Outreach Consultant/ Coordinator of Student Services 

r the penalty of perjury under t.he laws of the California that the foregoing and my attachments, if provided, 

t. 

SDS-PET046 

AN EQUAL OPPORTUNITY EMPLOYER

Richard G. McBurnie, Anornev 

Phone (661) 873-0360 

Fax (661) 873-0362 




Ladies and Gentlemen: 

Re: Silver D. Sack 

Reinstatement of CPA License 

3761 Bemard Street, #107 

P. 0. Box 2806 

Bakersfield, California 93303 

July 13, 2011 

This letter is written in support ofthe application by my friend and colleague Silver D. 

Sack for reinstatement of his license as a Certified Public Accountant. 

I have lmow Silver for over twenty years and, for more than fifteen years, I have had the 

pleasure of serving with him on the Board ofDirectors of The Harry and Ethel West Foundation 

and the Ben H. and Gladys Arkelian Foundation, two charitable foundations which make grants 

to 501(c)(3) organizations. Through this experience, I have come to trust Silver's honesty, 

probity, and integrity and to know that he has the character which I would want and expect for a 

CPA 

I have also referred clients needing accounting work to Silver and received referrals from 

him of clients needing legal work and, without exception, the feedback I have received supports 

the belief that Silver is a capable, competent, and hard-working accountant, clearly meriting 

reinstatement of his CPA license. 

Finally, among the mutual refelTals mentioned have been several matters involving 

organization of non-profit corporations which provide various public benefits. Silver and I have 

adopted similar approaches to such work, feeling that our commitments to public service merit 

completion ofthat work without charge. 

Silver, in short, is a credit to the profession of accountancy and his CPA license should be 

reinstated. 

I declare under penalty ofpe1jury under the laws of the State of California that the 

foregoing and my attachments, ifprovided, are tme and correct. 

cc: Silver D. Sack 

SDS-PET047 

,Very tmly yours, 

RICHARD G. McBURNIE

July 18, 2011 

,OCcotts 

At the Marketplace 

9000 Ming Avenue, Suite L-1 


661-664-2644 

California Board of Accountancy . 

Re: Reinstatement of C.P.A. License for Silver D. Sack 

I have known Mr. Sack for approximately 29 years, During that time, he has been my 

personal C.P.A., and a personal friend. In my dealings with Mr. Sack, he has always 

exhibited the highest degree of competence, integrity and moral character. I have never 

hesitated to recommend him to my friends and business associates. Therefore, I 

respectfully ask the Board of Accountancy g;rant his petition for Reinstatement of his 

C.P.A. License. 



James L. Olcott 

204 El Tovar Court 


SDS-PET051 

7)rrs/11 1 

Date {

July 18, 2011 

Ofcotts 

At the Marketplace 

9000 Ming Avenue, Suite L-1 


661-664-2644 


Re: Reinstatement of C.P.A. License for Silver D. Sack 

I respectfully ask that you grant Silver D. Sack his petition for Reinstatement of his 

C.P.A. License. Mr. Sack has been a friend and business associate of mine for over 24 

years. He has worked with my family business, my personal taxes and with me as the 

treasurer of the BHS Athletic Boosters and the BHS PTSA. He is competent and always 

professional. I have recommended Mr. Sack to my friends and I have no doubts about his 

abilities. I respectfully ask the Board of Accountancy to grant Mr. Sack his petition for 

the Reinstatement of his C.P.A. License 



Signature 

Michael G. Olcott 

Michael G. Olcott 

7809 Avenida Derecho 


Date 

SDS-PET052

To: The California Board of Accountancy August 18, 2011 

Care Of: Mickey, Casanova and Sack 

1735 28 1 h St. Bakersfield Ca. 93301 

From: Captain Michael D. Johnson 

Bakersfield City Fire Department 

7404 Terry John Ave. Bakersfield Ca. 93308 

661-805-1703 

To Whom It May Concern, 

I have been a firefighter for the Bakersfield City Fire Department for over 25 years and I have known 

Silver Sack for at least 27 years. One of the things that I have learned in the process offighting fire is that 

to operate efficiently you must work as a team. 25 years ago I took Mr. Sack on as part of my family's 

team. He has helped me with my finances without fail through all these years. He has kept me informed 

by answering any question I came to him with and his integrity in my money matters has been without 

question. I value his council and continue to call him friend through any adversity that he and his family 

weather. 

Thatteamwork concept is second nature to me and I know full well that he understands it. He has 

earned my loyalty at every turn by always being there when I needed him. Occasionally in attacking a 

fire a mistake is made, but the team member that makes the mistake is not drummed out of the 

department. He is instructed and mentored back to that level of excellence that gives confidence to the 

other team members that the original mistake will not be repeated. I know of the suspension and 

understand the lesson being taught. I, as a responsible member of this community want to let you know 

that I feel that Silver Sack is ready to rejoin the community you represent with a renewed passion for 

the integrity required by this profession. 

He ls a valued member of the community and is very active in a variety of community service 

organizations. Being involved with the Masons and Shriners requires that you be more than just an 

ornament on the wall. He continues to contribute to the many worthy causes that these organizations 

sponsor and has done so for many years. No matter your decision I know that he will continue to be 

active in these organizations because that is the kind of man he is. 

When Silver asked me to write this letter for him I did not hesitate to take the time to complete lt. 

There is a bit of a selfish reason for this, I believe that his expertise has kept me and my family on a path 

to prosperity over the last 25 years. I would humbly ask that you strongly consider his reinstatement as a 

boon to me and the many other folks he serves. Our confidence is with him and his ability to make his 

way through the maze of bureaucratic madness that the tax code has become. He does this with the 

utmost professionalism and to deny him the right to practice denies us the needed guidance to guard 

ourfuture. 

SDS-PET055

C & S CUSTOM COTTON HARVESTING 

Gary Schneider 

3646 S. Fairfax Rd. 

Bakersfield CA 93307 

August 14, 2011 


661-366-4148 ofc 

661-619-5440 cell 

661-366-5293 fax 

We at C & S Custom Harvesting have enjoyed the pleasure of working closely with Silver D. 

Sack as our chief accountant and business consultant for .over 30 yeat:s. We not only hold 

him in the highest esteem professionally but also as a man of high moral character and 

impeccable ethical integrity. . 

Due to consistent legislative changes regarding the agriculture industry, we have relied on the 

knowledge and expertise of Mr. Sack to guide us through complex audit procedures and 

government subsidy requirements. Without his valuable insight and continuing education in 

these esoteric areas, we at C & S would be greatly disserved if we were forced to fmd a 

replacement as suitable as Mr. Sack. 

Mr. Sack has provided personal accounting set-vices to both my business partner and me that 

deal with industries including real estate, long range frnancial planning, and retirement 

strategies. We have never experienced anything with Silver except honesty, professionalism 

and unquestionable character. In other words, he has our complete trust. 

I have known Silver on a personal level for over 47 years and have witnessed him donate his 

time and knowledge freely to non-profit organizations. He has been a valuable asset to our 

entire civic cotnmunity. 

We have been exceptionally pleased with tl1e quality and professional advice Silver has 

provided to our organization. We ask the California Board of Accountancy to kindly 

consider and grant this petition for Reinstatement of C.P.A. License. Please feel free to call 

us at any time if we can offer additional information. 

I declare under the penalty of ·perjury under the laws of the state of California, that the 

foregoing and my attachments, if provided, are true and correct. 

SDS-PET057 

Date


C,\LIFORNIA HOARD OF 

ACCOUNTANCY 






TELEPHONE: (916) 263-3680 

FACSIMILE: (916) 263-3675 




the original or the original copy of the California Tax Education Council website 

verifying SILVER DOLLAR SACK's current tax preparer status contained in the files of 

this office, and said documents were received in the normal course of business. 


Paul Fisher 





State of California 

SDS-PET058

STATE OF CALIFORNIA - STATE AND CONSUMER SERVICES AGENCY 

C/\LJFORNTA HOARD OP 

ACCOUNTANCY 



CALIFORNIA BOARD OF ACCOUNTANCY t 



TELEPHONE: (916) 263-3680 

FACSIMILE: (916) 263-3675 

WEB ADDRESS: llltp:llwww.cba.ca.gov 


agency and hereby certifies that the attached documents are a true and cormct copy of 

the originals or the original copies of the following pertaining to Sl LVER DOLLAR SACK 

contained in the files of this office, and said documents were received in the normal 

course of business. 

• First Amended Accusation No. AC-2004-35, dated June 6, 2005. 

• Stipulated Settlement and Disciplinary Order No. AC-2004-35, effective August 26, 

2005. 

• Decision in the Matter of the Petition for Reinstatement of Revoked Certificate, dated 

August 15, 2007. 


Paul' Fisher 






SDS-PET060

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BILL LOCKYER, Attorney General 

of the State of California 

JEANNE C. WERNER, State Bar No. 93170 

Deputy Attorney General 

California Department of Justice 

1515 Clay Street, 21" Floor 

P.O. Box 70550 

Oakland, CA 94612-0550 

Telephone: (510)622-2226 

Facsimile: (510) 622-2121 

Attorneys for Complainant 

In the Matter of the Accusation Against: 

Silver Dollar Sack 

7217 Etter Street 


Certified Public Accountant 

Certif1cate No. 2704 7 

and 

J\.illCKEY, CASANOVA & SACK, CPAs 

l735- 28u 1 Street 

Bakersfteld, CA 93301-1902 

CPA Partrrership Registration 

No. PAR 4215, 

BEFORE THE 



STATE OF CALIFORNIA 

Respondents. 

. Carol Sigmann, the Complainant herein, alleges: 

PARTIES AND JURISDICTION 

Case No. AC-2004-35 

FIRST AMENDED ACCUSATION 

1. Complainant Carol Sigmann brings this Accusation solely in her official capacity as 

the Executive Officer of the California Board of Accountancy, Department of Consumer Affairs. 

This.First Amended Accusation, hereinafter "Accusation," replaces the Accusation on file herein 

nunc pro tunc. . 

2. On or about December 1, 1978, the California Board of Accountancy issued 

lAAccSackAC2004-35 SF2004900087 05/11/05 SDS-PET061

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Certified Public Accountant Certtficate Number 27047 to Respondent herein, Silver Dollar Sack 1 • 

The Certified Public Accountant Certiftcate was in full force and effect at all times relevant to the 

charges brought herein and is renewed through February 28, 2007. 

3. On or about March 6, 1981, the Califorr\ia Board of Accountancy (Board) issued 

Partnership Certi f!cate Number PAR 4215 to Mickey, Casanova & Co? Respondent Silver 

Dollar Sack became a partner in the firm Mickey, Casanova & Co. when it was created in 1981. 

On or about August 11, 1983, Mickey, Casanova & Co. changed its name to its current name, 

Mickey, Casanova & Sack. 

The partnership renewal for the period beginning January 1, 1993, listed licensees 

Casanova: 1 and Sack as the firm partners. The Board was tnformed, in the renewal for the renewal 

period beginning April 1, 2001, that, on June 30, 1999, Kenneth J. Casanova was disassociated 

as a partner 4 and that Susan J. Cosper had been added as a partner. 5 Cosper left the fmn in 

December 2003. The Board was notifted that Casanova was again added as a partnef in the 

partnership registration renewal for the period April 1, 2005 through March 3 l, 2007. 

!. The use of "Respondent" herein refers to Mr. Silver Dollar Sack as the holder of both 

the individual CPA certificate and the partnership license. He was one of two licensed partners 

during the time period relevant herein. The other partner left the finn in 2003, in effect 

terminating that partnership (see below). 

2. Prior to 1981, Mickey Casanova & Co., holder of Partnership Certlftcate No. 4215, was 

known as Mickey, Casanova & Vaske, and was the holder of Public Accountancy Partnership 

Registration No. 3907. 

3. Kenneth J. Casanova is the holder of CPA Certified Public Accountant Number 9404. 

4. After Casanova's dissociation from the partnership in 1999, he retired from the firm. His 

license had expired on November 30, 2003. 

5. Susan Jane Cosper holds CPA Certificate No. 72232. The partnership registration listed 

only one other partner, Silver Dollar Sack. 

6. Casanova's CPA license was renewed in an "active" status on January 20, 2005, and is 

renewed through November 30, 2005. Prior to Casanova's license renewal in January 2005 (or 

the partnership's most recent license renewal for the period beginning April 1, :2005, listing 

Casanova and Sack as partners), Respondent Sack was in fact operating as a "sole proprietor" as 

he was the only CPA in the practice. . 

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expiration, cancellation, or forfeiture of a license issued by the Board shall not, deprive the Board 

of its authority to investigate, or to institute or continue a disciplinary proceeding against, a 

licens.ee upon any ground provided by law, or to enter an order suspending or revoking the license 

or otherNise taking disciplinary action against the licensee on any such ground. 

12. Code section 5000.1 provides as follows: "Protection of the public shall be the 

highest priority for the California Board of Accountancy in exercising its licensing, regulatory, and 

disciplinary functions. Whenever the protection of the public is inconsistent with other interests 

sought to be promoted, the protection of the public shall be paramount. 11 

FOR CAUSES FOR DISCIPLINE 

13. Respondent is subject to disciplinary action for multiple acts of unprofessional 

conduct under Business and Professions Code section 5100, including under speciftc 

subparagraphs thereof. The circumstances follow. 

CIRCUMSTANCES SUPPORTING THE IMPOSITION OF DISCIPLINE 

14. Respondent has worked at the partnership fnm now known as Mickey, Casanova 

& Sack (hereinafter the "firm") since 1975, and became a partner in or around 1981. He became 

the managing partner approximately six years ago, that is, in or around 1999, in or around the 

time when Mr. Casanova retired and Ms. Cosper became a partner. 8 As relevant herein, 

Respondent's remaining partner, Susan Cosper, left the firm at the end of 2003? 

Respondent's Client Ryan Jeffries 

15. Ryan W. Jeffries 0 and his wife, who live in Bakersfield and operate B&R Farms in 

Shafter, Califom!.a (in the Bakersfield area), had been Respondent's clients for approximately 

twenty-eight years, dating to a time prior to Respondent's becoming a partner at the firm. 

8. See paragraph 3 above. According to Respondent, during the period following 

Casanova's retirement, Mr. Casanova, whose license was· expired, was not a partner but 

performed some professional services for the f1rm. 

9. Following the filing of the original Accusation in this matter in June, 2004, Mr. 

Casanova, on January 20, 2005, reactivated his license, and the partnership license was renewed 

effective April 1, 2005, with Messrs. Casanova and Sack listed as the qualifying partners. 

10. Mr. Ryan Jeffriesis sometimes referred to herein by his 1ast name. 

1AAccSackAC2004-3:5 SF2004900087 0:5111/05 5 

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Respondent performed many services (described in greater detail below) for Mr. Jeffries, vvho 

considered Respondent to be acting as his accountant, tax preparer and advisor, and controller. 

Respondent perf(Jrmed many of his services "on the side" for Mr. Jeffries (not "running them 

through" the partnership accounts), with the acquiescence of his partner(s). However, other 

services perfonned for Mr. Jeffries, as well as services for other Jeffries entitieS' were provided 

through the firm, either by Respondent or other individuals, and were biLled through the fum. 

16. Among the services for Mr. Jeffries and B&R Farms which Respondent performed 

"on tbe side" were opening mail and reviewing bills; bill paying procedures and manual 

bookkeeping through preparation of the j oumal entries for computer input ( cash routing, coding, 

and filing); cash estimates; analysis working papers; maintenance of banking records; preparati.on 

of bi-weekly payroll, and monthly payroll checks and bank deposits; depreciation schedules; estate 

and tax planning; investments; and 11 extra projects." 

17. In carrying out his responsibility for paying Jeffries' bills, Respondent created a 

cash disbursements journal (entitled "Payment Record", and also referred to as the 11 write-at 

once" check system or the checkbook) in which he entered check payees, date, amounts, check 

nllmbers and bank deposits and balances. Payments were recorded in various expense categories, 

for example, Taxes, Travel and Entertainment, Supplies, Chemicals, "Drawing" - signifying 

cDmpensation to Mr. Jeffries- and to Respondent or the firm for accounting fees. 

18. Respondent kept Mr. Jeffries' fmancial records, including the cash disbursement 

journal, th.e general ledgers, and other pertinent records in Respondent's private offtce at the firm. 

Respondent regularly requested that Mr. Jeffries sign a number of checks "in blank" which, 

Respondent represented, were to be used in the ongoing payment of Mr. Jeffries' financial 

obligations. Mr. Jeffries' checking account statements and canceled checks were mailed directly 

to the Respondent at the Respondent's home address. 

11. Respondent performed accounting services for Phil] effries Farms (operated by June 

Jeffries, who is Ryan Jeffries' mother), and provided other services to various Jeffries family 

members, including income tax preparation. Respondent served as co-trustee, along with June 

Jeffries, for the \Villiam Lachenmaier Trust, whose beneficiaries include Ryan Jeffries aJ1d June 

Jeffries. 

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Resporrdent) were not returned to him by Respondent. 

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'Y' ). Mr. Jeffries requested duplicate checks and statements from the bank, some of 

which the bank was able to provide, and reviewed what records were available to him: 2 He 

confwned additional irregularities or questionable payments to Respondent, dating back several 

ye:trs, evidenced in part by additional checks being made payable to, and negotiated by, 

Respondent without Mr. Jeffries' knowledge. 

24. During Mr. Jeffries' inquiry, settlement negotiations were initiated, and eventually 

a Settlement Agreement and General Release was executed on February 19, 2003, which required 

Respondent to pay $200,000.00 13 in satisfaction of those matters relating to his alleged conversion 

and mishandling of Jeffries' funds. The agreement further provided that Respondent would 

complete, at his own expense, the Jeffries' federal and state tax returns; that Respondent would 

provide free of charge any services in connection with any audits of any tax returns, including 

prior years, prepared by Respondent; that Respondent would pay all costs incurred by such audits; 

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a. Check No. 12451, dated November 14, 2002, in the amount of $2000.00 payable 

to ''Silver Sack" and deposited to his personal checking account. 

b. Check No. 12545, dated January 9, 2003, in the amount of $2000.00 made 

payable to, and negotiated by, Respondent, but recorded by him in Mr. Jeffries' records as a draw 

to .Jeffries (see paragraphs 21 and 22 above). 

R.c:spondent. 

c Check No. 12606, dated February 6, 2003, in the amount of $2000.00 payable to 

30. Respondent also made payments for his personal credit card debt directly through 

the B&R Farms checking account. Respondent estimated that this occurred six or seven times a 

year in the past six or seven years, and that these personal credit card payments included 

payments for his AT&T Universal Card and for a VISA credit card. Respondent was unable to 

rule out payments on his own behalf to a Chevron credit account (an account, which is not 

recognized by Mr. Jeffries as his own). Respondent testified (at a May 6, 2004, Board 

Investigative Hearing) that in order to record the payments for his personal credit card debts, he 

posted the transactions into an expense account used for payment of Jeffries' farm and personal 

credit card debts, "probably" into Mr. Jeffries' travel and entertainment account category. 

31. Among fraudulent credit card payments discovered by Mr. Jeffries in the limited 

records made available to him were: 

a. Check No. 12427, dated October 30, 2002, in the amount of $757.39 made 

payable to AT&T Universal card for Respondent's personal credit card debt. 

b. Check No. 12520, dated December 24, 2002, in the amount of $255.47 made 

payable to Chevron, but not to Mr. Jeffries' credit card account. 

32. Respondent concealed his embezzlement from Mr. Jeffries, by using checks signed 

in blank for other purposes to pay himself and by having the bank statements and checks sent to 

his personal residence. 

33. Respondent concealed his embezzlement from Mr. Jeffries by creating false entries 

in the client's original accounting records (the cash disbursements journal). 

34. Respondent concealed his embezzlement from Mr. Jeffries when he failed to 

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inc! ude in Mr. Jeffries' accounting fees, as reflected in the compiled financial statements for the 

year ended December 31,2002, a $2,000.00 payment to himselffrom client funds. 

35. Respondent misappropriated funds by making payments to himself in excess of the 

agreed-upon fees for accounting services provided to Jeffries. He created no time records, 

invoices, etc. to justify or communicate to Jeffries regarding these excess charges. 

36. Incorporating by reference the matters alleged inparagraph.s 29 through 3 5 above, 

causes for discipline ofRespondent's licenses are established under Code section 5100(k) for 

embezzlement. 

37. Incorporating by reference the matters alleged in paragraphs 29 through 3 5 above, 

causes for discipline ofRespondent's licenses are established under Code section 5100(k) for the 

mi.sappropriation of his client's funds. 

38. Incorporating by reference the matters alleged in paragraphs 29 through 35 above, 

causes for discipline of Respondent's licenses are established under Code section SlOO(k) for 

obtaining money by fraud or false pretenses. 

CPA Partnership Funds 

I 

39. Complainant realleges paragraphs 3, 14, and 25 through 27, above, and 

incorporates them herein by reference as iffully set forth. at this point. Additional circumstances 

follow. 

40. Respondent made unauthorized use of accountancy partnership funds for the 

payment of personal expenses as well as payments for liabilities incurred by his misconduct with 

his client Jeffries. 

41. Use of Accountancy Partnership Funds for 11 Jeffries Liabilities. 11 In addition to 

the February 2003 payment of $7,000.00 to Jeffries for bank copying charges (see paragraph 25 

and footnote 12), additional payments to or for the beneftt of Jeffries, but drawn on the 

partnership account rather than charged to Respondent, were: 

a. Check No. 613 2, dated April 18, 2003, for $1, 167.69, to Jeffries' attorney 

in connection with drafting the settlement agreement. 

b. Check No. 6152, dated April 25, 2003, for $1,495.35, payable to the IRS 

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for penalties incurred by Jeffries regarding insuff1cient or late deposits of payroil taxes by 

Respondent during 2002. 

4::!-. Use of Accountancy Partnership Funds for the Payment of Personal Exoenses. 

Respondent frequently pai.d his personal expenses witb partnership funds, and posted the expenses 

to partnership expense accounts rather than to his draw account. Among the charges were 

regular payments for Respondent's daughter's cell phone; his swimming pool maintenance; 

personal life and medical insurance payments; and consumer purchases, e.g., hardware store, 

refrigerator.. etc. Respondent's use of partnership funds for personal expenses and recording of 

the transactions by use of partnership expense accounts resulted in overstated partnership expense 

and understated net income. 

43, lncorporating by reference the matters alleged in paragraphs 39 through 42 above, 

cause for discipline of Respondent's licenses are established under Code section 51 OO(k) for 

obtaining money in tbe form of payment of his personal expenses by the ftrm by fraudulently 

categorizing said expenses or falsely pretending the expenses were business, not personal, 

ex.penses, and by concealing his use of partnership assets to address liabilities he incurred in his 

dealings with Jeffries. 

SECOND CAUSE FOR D£SCIPLINE 

Gross Negligence in the Practice of Public Accountancy Bus. & Prof. Code§ 5100(c) 

· and 

Dishonesty in the Practice of Public Accountancy- Bus. & Prof. Code§ 5100(c) 

and · 

Fiscal Dishonesty- Business & Professions Code§ 5100(i) 

44. Complainant realleges paragraphs 14 through 3 5 and 3 9 through 42, above, and 

[ncorporates them herein by reference as if fully set forth at this point. 

45. incorporating these matters by reference, cause for discipline of Respondent's 

licenses is established under Code section SlOO(i) for ftscal dishonesty in his dealings with his 

cltent Ryan Jeffries and his characterization of partnership expenses. 

46. Re-iocorporating by reference the matters alleged in paragraph 44 above, cause for 

discipline of Respondent's licenses is established under Code section 51 00(c) for dishonesty in the 

practice of public accountancy in his misconduct with his client :tv1r. Jeffries. 

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47. Re-incorporating by reference the matters alleged in paragraph 44 above, cause for 

discipline of Respondent's licenses is established under Code section 51 00(c) for gross negligence 

i.n his dealings with his client Ryan Jeffries in that such dealings evidence extreme departures 

from the standard of practice of public accountancy. 

THIRD CAUSE FOR DISCIPLtNE 

Knowing Preparation and Dissemination 

Of False and Fraudulent Financial Inf(Hmation 

Including Filing False Income Tax Returns 

Business and Professions Code§ 5100U) 

and · 

Fiscal Dishonesty- Business and Professions Code § SlOO(i) 

and 

Gross Negligence in the Practice of Public Accountancy Bus. & Prof. Code § 5100(c) 

48. Complainant realleges paragraphs 15 through 24 and 29 through 35 above, and 

incorporates them herein by reference as iffully set forth at this point. Additional circumstances 

follow. 

49. Respondent prepared fraudulent financial reports and information when he mis 

classified, in his client Jeffries' origin.al accounting records, payments to himself, including those 

for his personal credit card debt, to conceal from the client the true nature of the payments. 

50. Respondent failed to prepare accurate Forms 1099 for J\llr. Jeffries by failing to 

account for the unauthorized payments to Respondent. 

51. Respondent failed to include, in the client's accounting fees as reflected in the 

compiled financial statements for the year ended December 31, 2002, a $2000.00 payment to 

himself from client funds. The failure to accurately record the monies paid as accounting fees or 

otherwise resulted in misstated fma.ilcial statements. 

52. Respondent posted substantial personal expenses in the tirm' s accounts for 

business expenses, resulting in false partnership accounting records, financial statements, and 

income tax returns. 

53. Respondent failed to make required tax payments on Jeffries' behalf during 2002, 

resulting in insufficient or late deposits of payroll taxes (see paragraph 4l.b.). 


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relationship with Mr. Jeffries, dating back 28-odd years, was characterized by Mr. Jeffries' placing 

complete conftdence in Respondent to handle Jeffries' financial affairs. This is reflected, in part, in 

Respondent's maintenance of all banking and other records, his receiving at home Jeffries' 

statements and canceled checks, his control over, and use of signed blank checks entrusted to him 

by Jeffries, and his complete control over, and management of, Jeffries' original books of entry. 

The trusting quality of the relationship is also demonstrated by Respondent's serving generations 

of the Jeffries family, including as a co-trustee of the trust holding the land farmed. Some of his 

duties are described in paragraph 15 through 20 above. He perfonned other duties such as 

financial advisor and personal representative or agent in a variety of circumstances. Mr. Jeffries 

reposed a special trust and confidence in Respondent. Mr. Jeffries was justified in believing that 

Respondent would act in Mr. Jeffries' interest. 

61. Respondent used his position and influence with Mr. Jeffries to his own financial 

advantage and to Mr. Jeffries' detriment. Respondent's dealings with Mr. Jeffries lacked the 

ineli cia of care, candor, and loyalty which Respondent owed Mr. Jeffries as his fiduciary. He 

placed his self-interest above Mr. Jeffries' interests. Moreover, R.espondent took advantage of 

his position and of Mr. Jeffries' trust in him, resulting in Mr. Jeffries' not being fully informed 

about the amounts and purposes of the fees Respondent collected. For example, Respondent's 

failure to bill Jeffries, to keep time records, to provide accountings, and to clearly indicatein any 

way the amount of fees, fee "increases" and nature and amount of··work performed, constitutes the 

repeated breach of his ftduciary duty to Mr. Jeffries, in light of their confidential and ftduciary 

relationship and the significant trust Mr. Jeffries reposed in Respondent. 

Mr. Jeffries are: 

62. Among further examples ofRespondent's multiple breaches of fiduciary duty to 

a. Respondent breached his ftduciary duty to Mr. Jeffries by using his access 

to Mr. Jeffries' accounts to obtain "fees" for himself far in excess of agreed-upon fees, which 

violated his duty of loyalty to Mr. Jeffries and placed Respondent's interests above his client's. 

b. Respondent breached his fiduciary duty to Mr. Jeffries by using his access 

to Mr. Jeffries' accounts to obtain "fees" for himself far in excess of the agreed costs. 

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c. Respondent repeatedly violated his duty of candor as Mr. Jeffries' f1duci ary 

when he presented Mr. Jeffries with incomplete or selective information and summaries regarding 

B & R Farm accounts. 

d. Respondent repeatedly violated his duty of candor as Mr. Jeffries' f1duciary 

when he failed to present Mr. Jeffries with complete information regarding his fmances and 

financial transactions, particularly those by which he personally benef1tted. 

e. Respondent repeatedly violated his f1duciary duty and his duty of candor as 

Mr. Jeffries' ftduciary in taking advantage ofResp.ondent's reliance on him and their extensive and 

longstanding confidential and trusting relationship. 

f. Respondent repeatedly violated his f1duciary duty and his duty of candor as 

Mr. Jeffries' riduciary when he obtained Mr. Jeffries' signature on blank checks which were 

subsequently made payable to Respondent without Mr. Jeffries' knov0!edge or consent, e.g., the 

$2000.00 check (in January 2003) referenced above. 

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Respondent violated his ftduciary duty as a co-trustee of the William 

T_,achenmaier trust 16 Respondent testified at the Investigative Hearing that he was the trustee 

responsible for handling funds, collecting rents, collecting royalties, paying taxes, etc. By his own 

ad mission, "about four years ago,'' the "receipts -mainly the sales" of several Jeffries entities 

became commingled. Respondent's lack of due diligence regarding his co-trustee responsibilities 

ha.d unknown financial and legal consequences for the beneficiaries, to whom he owed a duty, 

including bis client Mr. Jeffries. 

h. Respondent violated his fiduciary duty to Mr. Jeffries when he made 

insufficient or late deposits of payroll taxed during 2002, resulting in penalties to Mr. Jeffries. 

63. incorporating by reference the matters set forth in paragraphs 59 through 62, 

Respondent's conduct constitutes multiple breaches of fiduciary duty to Mr. Jeffries, and thus 

constitutes multiple causes for discipline of his licenses for unprofessional conduct within the 

16. The land which Mr. Jeffries farmed was in the Lachenmaier trust, and Jeffries was one 

of the trust beneftciaries. 

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meaning of Code section 51 OO(i)(breach off1duciary duty of any kind). 

FIFTH CAUSE FOR DISCrPLINE 

Record Retention Violations 

Business And Professions Code Sections 5037(b) and 5100(g)!Board Rule 68 

64. Complainant realleges paragraphs 16 through 18 and 21 through 23 above, and 

incorporates them herein by reference as if fully set forth at this point. 

65. As previously set forth, Respondent was responsible for creating and maintaining 

Mr. Jeffries' records. After he was alerted th1:lt Mr. Jeffries was becoming aware of his 

misappropriations of Jeffries' funds, he failed to respond to Mr. Jeffries' prompt request for the 

return of his records, including at least the original (or copies of) cash disbursement journals, 

some 6000 canceled checks, and bank statements, which were the.most incriminating of the 

records regarding Respondent's embezzlement. The records he did provide were incomplete. 

66. Respondent testified at the Investigative Hearing that he had no defmite records 

destruction policy. Records were moved to an off-site storage site periodically, and 

uDdiscrirninatingly, and when the storage became "full" the records were shredded. 


cause for discipline of Respondent's licenses is established under Code section 503 7(b) and Board 

Rules 68 and 68.1 (in conjunction with Code section 51 OO(g)). 

SIXTH CAUSE FOR DISCIPLINE 

False Advertising as a Sole Proprietor 

Business And Professions Code Section 5IOO(g)!Board Rules 63 & 67 

68. Complainant realleges paragraphs 3 and 14 above, incorporating them herein by 

reference as if fully set forth at this point. Complainant further alleges that Respondent has 

continued to practice under the auspices of Mickey, Casanova & Sack, showing the full names of 

former partners Mickey and Casanova at the bottom of his letterhead directly above the legend 

"Members - American Institute of CPA's California Society of CPA's" and the firm's address, as 

if they were still involved in the firm, and that he has represented himself as a partnership while he 

is in fact operating as a sole proprietor. 

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69. incorporating by reference the matters alleged in paragraph 68 above, cause for 

discipline of Respondent's licenses is established under Board Rules 63 and 67. 1, in conjunction 

with Code section 51 OO(g), in that Respondent Sack's continued "holding out" as a partnership 

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and his continued practice under the auspices of Mickey, Casanova & Sack, when Mr. Mickey is 

deceased, Mr. Casanova was retired, and Respondent had no remaining partners, is misleading, in 

the absence of obtaining approval from the Board. 

SEVENTH CAUSE FOR DISCIPLINE 

Unprofessional Conduct 

Business & Professions Code Section 5100 

70. Complainant realleges paragraphs 14 through 27, 29 through 35, 40 through 42, 

49 through 53, 56, and 60 through 62, above, incorporating them herein by reference as if fully 

set forth at this point. Rule 102 of the AI CPA Code ofPrqfessional Conduct requires that, in the 

performance of any professional service, a CPA shall maintain objectivity and integrity, shall be 

free of conflicts of interest, and shall not knowingly misrepresent facts or subordinate his 

judgment to others. 

71. Incorporating by reference the matters set forth in paragraph 70, Respondent's 

conduct regarding his client l\1r. Jeffries constitutes unprofessional conduct within the meaning of 

Code section 5100. 

DISCIPLINE QF PARTNERSHIP REGISTRATION 

Unprofessional Conduct- Bus. &Prof. Code Section 5101 

7'2. Incorporating by reference all causes for discipline pled herein, Respondent's 

partnership registration is subject to discipline, under Code section 5101 in conjunction with Code 

section 5100, for each and for all of the causes alleged. 

OTHER MATTERS 

73. Pursuant to Code section 5107, it is requested that the administrative Jaw judge, as 

pari of the proposed decision in this proceeding, direct Respondent to pay to the Board all 

reasonable costs of investigation and prosecution in this case, including, but not limited to, 

attorneys' fees. 

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partnership with petitioner. Ms. Cosper left the partnership in December 2003. In 2005, the 

Board was notified that Kenneth Casanova rejoined the firm as a partner. 

· 4. In Decision and Order effective August 26, 2005, pursuant to a Stipulated 

Settlement in Case No. AC-2004-35, the Board revoked petitioner's Certified Public 

Accountant Certificate No. 27047. 

5. In the Stipulated Settlement, Petitioner admitted that he embezzled and 

misappropriated funds from a client during a six-year period beginning in the late 1990s 

through January 2003. During this six-year period, petitioner made check disbursements 

directly to himself totaling at least $90,000 for his personal use and/or benefit, and thereafter 

made false entries in the client's accounting records. Specifically, petitioner prepared false 

financial reports to conceal the misappropriation of his client's funds; prepared inaccurate tax 

forms by failing to account for the unauthorized payments to himself; and failed to accurately 

record monies paid to himself as accounting fees, resulting in misstated financial statements. 

6. Petitioner misappropriated his client's funds because he felt that he was not being 

a,dequately paid for his services. Petitioner testified that he did not ask for higher fees 

because he felt intimidated by this client. While this explanation sets forth petitioner's state 

of mind when he embezzled his client's funds, it does not excuse his dishonest conduct. 

7. Petitioner presented evidence of rehabilitation. He paid restitution to the client in· 

the amount of $200,000. He paid $57,000 to the Board for costs of investigation and 

prosecution relating to the causes for discipline in the First Amended Accusation. Petitioner 

also volunteers for a number of community service organizations, including a "dropout 

recovery program" for East High School in Bakersfield, California. Since November 2005, 

petitioner has taken 90 hours of continuing education courses. Respondent also submitted 

nun'lerous letters of reference, which have been considered by the Board. Finally, petitioner 

has sought counseling from a clinical psychologist. 

LEGAL CONCLUSION 

1. Cause does not exist pursuant to Business and Professions Code Section 5115 to 

grant the Petition for Reinstatement of a Revoked License. The Board has considered 

petitioner's evidence of rehabilitation. 

2. Cause exists under Business and Professions Code section 5115, subdivision (a), to 

prohibit petitioner from filing a ·subsequent petition for reinstatement for three years 

following the effective date of this decision. The Board makes this determination based on 

the serious nature of the Petitioner's dishonest conduct, which was a direct violation of the 

fiduciary duties owed to a client occuning over a six-year period. Further, petitioner's 

dishonesty and attempts to conceal his misconduct not only hurt his client, but was also 

i11jurious to his partners, who may have suffered financially and professionally from 

petitioner's actions. Finally, petitioner's explanation for misappropriating his client's funds 

is an attempt to rationalize his misconduct. 

2 

SDS-PET088


C A I, I 11 0 R N I A f\ 0 A R D 0 F 

ACCOUNTANCY 






TELEPHONE: (916) 263-3680 

FACSIMILE: (916) 263-3675 


STATE OF CALIFORNIA ) 

) ss. 

DEPARTMENT OF CONSUMER AFFAIRS ) 

CERTIFICATION OF LICENSE HISTORY 

GOVERNOR EDMUND G. BROWN JR. 

I, Paul Fisher, hereby certify that I am the Supervising Investigative CPA of the 

Enforcement Division of the California Board of Accountancy, Department of Consumer 

Affairs, State of California, and in that capacity, share in maintaining control and custody 

of files and records dealing with and pertaining to the duties and responsibilities of said 

Board. On .December 14, 2011, I made or caused to be made a diligent search of the 

aforesaid files and records concerning the certification and license history of Sl L VER 

DOLLAR SACK. I determined that the official records prepared by various persons 

employed by the California Board of Accountancy acting within the scope of their duties 

show the following license history of SILVER DOLLAR SACK. 

1. Certificate number 27047 (Certified Public Accountant) was issued to SILVER 

·DOLLAR SACK on December 1, 1978, by the state of California. 

2. The certificate is subject to renewal every two years pursuant to California Business 

and Professions Code Section 5070.5. The applicable renewal period for this 

certificate begins March 1 of odd-numbered years. 

3. The California Board of Accountancy's licensing records were transferred to the 

Department of Consumer Affairs' centralized computer system in March 1989. As a 

result, the underlying documentation related to license history prior to that date is 

unavailable. The computerized records reflect that in March 1989 the certificate 

had expired on February 28, 1989. 

4. The certificate was expired and was not valid during the period March 1, 1989 

through May 24, 1989, for the following reasons: 

a) the renewal fee required by California Business and Professions Code 

Section 5070.5 was not paid; and 

b) declaration of compliance with continuing education requirements was not 

submitted. 

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SDS-PET090

5. Effective May 25, 1989, the certificate was renewed through February 28, 1991, 

upon receipt of the renewal fee and declaration of compliance with continuing 

education requirements ("active"). 

6. The certificate was continuously renewed for the periods March 1, 1991 through 

February 28, 1993; March 1, 1993 through February 28, 1995; March 1, 1995 

through February 28, 1997; March 1, 1997 through February 28, 1999; March 1, 

1999 through February 28, 2001; March 1, 2001 through February 28, 2003; 

March 1, 2003 through February 28, 2005, and March 1, 2005 through February 28, 

2007, with continuing education ("active"). 

7. Charges of unprofessional conduct were filed against SILVER DOLLAR SACK by 

the California Board of Accountancy in First Amended Accusation No. AC-2004-35, 

dated June 6, 2005. The decision in the matter of First Amended Accusation No. 

AC-2004-35 became effective on August 26, 2005, and Certificate No. CPA 27047 

issued to SILVER DOLLAR SACK was revoked. 

8. The last address of record for SILVER DOLLAR SACK, Certificate number 

CPA 27047, as appearing in the records of the California Board of Accountancy, in 

conformance with California Code of Regulations, Title 16, Chapter 1, Section 3, is: 

SILVER DOLLAR SACK 

7217 Etter Street 


9. The California Board of Accountancy has not adopted a regulation authorizing 

intervention. 

This certification is made pursuant to Evidence Code Section 1280 and the authority 

conferred upon me by the California Board of Accountancy. 


PAUL FISHER 






SDS-PET091 

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Zita, Roland and 

Roland Zita Certified Public Accountant, A Professional Corpomtion 

Petition for Reinstatement 

Page 2 

CAUSE FOR DISCIPLINE . 

In 1991 or i 992, Mr. Zita began performing work, primarily tax preparation, for an elderly 

client under the direction of the client's trusted and longtime CPA. Upon the CPA's 

death in mid 1993, Mr. Zita assumed sole responsibility as the client's CPA, acting as 

her accountant, tax preparer, and business manager, until his dismissal in late 1998. 

Mr. Zita also held signatory authority and power of attorney for some of the client's bank 

accounts. 

Over the period 1993 to 1998, Mr. Zita received from the client $887,000, categorized by 

Mr. Zita as fees, plus $477,757.72 that he categorized as gifts to himself and his family. 

Mr. Zita also claimed that his client gave him and his wife a 6-carat diamond ring as a 

gift in 1994. He offered in support of his claim a letter purportedly signed by his client on 

November 2, 1998, the last date Mr. Zita had contact with the client. 

Mr. Zita failed to prepare and maintain adequate accountings, financial statements, 

records of loans and gifts, or like documents for his client, although he was paid to do 

so. Without these basic accounting records, his client could not be fully informed of her 

financial situation, including her tax liabilities and the scope of the payments and gifts to 

Mr. Zita and his family. He also failed to prepare gift tax returns for his client that would 

reflect the significant amounts of money gifted to Mr. Zita and his family. 

Further, Mr. Zita posed as a psychic who was in c"ommunication with the client's 

deceased.husband, writing letters to influence her to continue to rely on Mr. Zita and to 

distrust others. 

The CBA's accusation stated that Mr. Zita occupied a position of trust and had a 

confidential and fiduciary relationship with his client. He was charged with general 

unprofessional conduct, breach of fiduciary duty, and conflict of interest for using his 

position and influence with his 90-year-old client to his financial advantage and to her 

detriment. 

The accusation also charged Mr. Zita with fiscal dishonesty and knowing preparation 

and dissemination of false, fraudulent financial information. This charge is based on his 

failure to report on his personal or corporation income tax return the $500,000 that he 

claimed as a fee earned in connection with his assistance to his client in the settlement 

of a lawsuit. 

Mr. Zita also practiced under his CPA corporation while the corporation license was 

expired from July 1, 1998 to July 1, 2001. 

CODE VIOLATIONS 

California Business and Professions Code, Division 3, Chapter 1 , Sections 5050, 

51 OO(g)(i)(j)(k), and 5156. 

California Code of Regulations, Title 16, Division 1, Section 57 and 58. 

RZ-PET002

Zita, Roland and 

Roland Zita Certified Public Accountant, A Professional Corporation 

Petition for Reinstatement 

Page 3 

ADDITIONAL INFORMATION FOR CON SID ERA TION 

• Restitution to Client 

The clienlfiled a civil lawsuit against Mr. Zita and his corporation on February 1, 

2000. The suit sought damages based upon 1) Constructive Fraud; 2) Fraud; 

3) Willful Misconduct and Violation of the Elder Abuse and Dependent Adult Civil 

Protection Act; 4) Conversion of Personal Property; 5) Professional Negligence by 

an Accountant; and 6) Breach of Fiduciary Duty. Mr. Zita denied the allegations, and 

the parties resolved the matter on May 29, 2001 through a Settlement, Mutual 

Release and Waiver Agreement (ATTACHMENTS RZ-PET011-021). 

The Agreement provides that the terms will be kept confidential and will not be 

disclosed to any third party except in legal proceedings to enforce performance of 

either party's obligations or where required by law, or to the Board or other 

appropriate governmental agencies. (See ATTACHMENT RZ-PET019.) Therefore, 

the Agreement is being provided only to the CBA members, Administrative Law · 

Judge, and Deputy Attorney General Carl Sonne. 

• Continuing Professional Education 

Mr. Zita submitted evidence of completion of 16 hours of continuing professional 

education completed during the period January 26, 2011 through January 4, 2012 in 

the area of tax. {ATTACHMENTS RZ-PET022-024) 

• Letters of Recommendation 

Mr. Zita submitted seven letters of recommendation with his petition. 

{ATIACHMENTS RZ-PET033-048) 

• Reimbursement of Investigation and Prosecution Costs 

Stipulated Settlement and Disciplinary Order No. AC-2004-31 requires that 

Mr. Zita pay investigation and prosecution costs not to exceed $120,000 prior to the 

CBA accepting a petition for reinstatement for consideration. However, because of 

the financial hardships resulting from the loss of his CPA certificate, Mr. Zita 

requests that, if his certificate is reinstated, the CBA allow him to reimburse the 

unpaid costs in installment payments over a three-year period. 

(ATIACHMENT RZ-PET029) 

Mr. Zita has submitted personal financial information in support of his request. 

(ATIACHMENTS RZ-PET050 and 052) 

The personal financial information is protected from public disclosure pursuant to 

California Government Code Section 6254(n) and is being provided only to the CBA 

members, Administrative Law Judge, and Deputy Attorney General Carl Sonne. 

Rl:mls 

RZ-PET003






C r\ I, I F 0 ll N I 1\ 1\ 0 A R n 0 F TELEPHONE: (916) 263-3680 

ACCOUNTANCY 


FACSIMILE: (916) 263-3675 

WEB ADDRESS: http://www.cba.ca.gov- 



the original or the original copy of the Petition for Reinstatement of Revoked Certificate, 

dated October 25, 2011, from ROLAND ZIT A contained in the files of this office, and 

said documents were received in the normal course of business. 


Paul Fisher 






RZ-PET004

PAGE 2 

QUESTION 2: 

NARRATIVE EXPLANATION 

Please see attached Petition for Reinstatement from 

Respondents attorneys, Mathon and Rosensweig PC, with 

attachments evidencing financial hardship and letters 

in support of Reinstatement under penalty of perjury. 

5 

RZ-PET009

Question 7. (page 3) 

Explain why you believe your petition should be granted. Include what aspects you believe 

will protect a re-occurrence of your prior conduct. 

My petition sbould be granted because l am remorseful and have suffered through the last four 

years the consequences of my actions professionally, emotionally, and fmancially. I lived 

through these four years complying vvith the punislm1ent I stipulated to and ordered by the State 

Board. Realizing my actions or Jack thereof in protecting my license and the standards of 

conduct that was required of me has taught me a life long lesson. I plan on taking further 

education on professional ethics and other required courses to ensure that my prior conduct does 

not re-occur. J also plan on sharing my experience with licensees and aspiring licensees to help 

them avoid :6nding themselves and their families in the situation that I am in and the dif:6culties I 

have experienced. 

RZ-PET010

DUE TO CONFIDENTIALITY, 

ATTACHMENTS 

RZ-PET011 THROUGH RZ-PET021 

WILL NOT BE RELEASED FOR 

PUBLIC DISCLOSURE.

NAME ROLAND ZITA 


CONTINUING EDUCATION REPORTING WORKSHEET 

1 2 3 4 5 

0 

w (") 

w 

0 2 

0 (f) DATE(S) 

0 f-W 

::J 5o 0 W[t 

(f) 00 I. 20... 

R 

INTERNAL REVENUE SERVICE T 1-26-11 2 SOCIETY OF CALIFORNil L 

UPDATE 

ACCOUNTANTS 

FRANCHI$E TAX BOARD T 1-26-11 2 SOCIETY OF CALIFORNil L 

ACCOUNTANTS 

UPDATE 

HOURS CLAIMED FOR EACH SUBJECT AREA 

REGULATORY REVIEW (technical) 

GOVERNMENT CE (technical) 

A&A CE (technical) 

FRAUD CE (technical) 

ETHICS (technical) 

OTHER TECHNICAL CE A 

NON-TECHNICAL CE 

TOTAL HOURS CLAIMED: 4 

If additional space is needed, this form may be reproduced. 

.RZ-PET022 

(REV 6/1 0)

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member of California Society of Certified Public Accountants, Philippine American Society of 

CP 

As, International Society of CPAs and other professional societies not only to learn new 

developments 

in the CPA community but to learn from other practitioners. In 1994, he became 

President 

of the Society of California Accountants of the Greater Los Angeles Chapter helping 

other 

professionals to succeed in their accounting practice. Throughout his career, he had 

represented 

several successful businesses in all fields, as well as individuals, and was highly 

regarded 

by all of his clientele. Mr. Zita has also performed pro bono work for non-profit 

organizations 

such as the Los Angeles Bar Association, Hollywood Police Assistance League and 

Central Hollywood Neighborhood Council. Many of hi:s clknts after having leamed of Mr. 

Zita's loss of license in 2007 have advised him that they would wish to have him represent them 

if 

his license was reinstated. 

Respo ndents. 

3. LETTERS OF SUPPORT 

Attached hereto marked Exhibit A are seven letters of support for the reinstatement of 

NO. LETTER FROM DESCRIPTION 

DATED 

1. 02/01111 Barry N. Nagoshiner, 

CPA 

2. 09/21111 Eric Manlunas, Founder 

and Managing Director of 

Frontera Group 

Has known Mr. Zita since the mid 

1990s as a CPA and was President 

of the Society of California 

Accountants, as well as previously 

serving on the State Board, highly 

supports Mr. Roland Zita's 

reinstatement. 

Mr. Zita was instrumental to the 

growth of his business and he 

unequivocally recommends Mr. 

Zita's reinstatement. 

3. 09/21111 Richard H. Ellwood, CPA Mr. Ellwood is a highly respected 

ce1tified public accountant of more 

than 34 years of experience and if 

Respondents are reinstated, he 

would welcome the opportunity for 

Roland Zita to join his fim1. 

RZ-PET027 

PET FOR REINSTMNT OF RSPNDI'\T'S ACCTG LICS (BUS AND PROFS CODE SEC 5115(a)); 

REQUEST THAT THE BOARD CONDITIONALLY REINSTATE FOR THREE YEAR RSPNDNT'S LICS 

BASED 01'\ FlN'L HARDSHIP (BUS & PROFS CODE SECS 51 07j(2) AND 5107k)

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NO. LETTER FROM DESCRIPTI0 N 

one 

complaint ever lodged against them which was by the Complainant herein. Please note that 

the 

Complainant entered into a Civil Settlement with Mr. Zita in 2001. Throughout his years as a 

licensee, 

Roland Zita exceeded the education requirements ofthe State Board in order to better 

represent 

his clients. 

DATED 

4. 09/21/11 Van Gerard Dicboso, Has known Roland Zita for over] 0 

CPA and President of years and benefitted from Mr. Zita' s 

Dichoso & Company guidance and counsel and would 

CPA, Inc. offer IYlr. Zita the oppmtunity to join 

his firm upon reinstatement. 

5. 09/21/11 Farshid Lalezarian, Has a highly successful wholesale 

President of Unilight electric company states Mr. Zita 

Wholesale Electric Co. helped him to grow and establish l1is 

business and would welcome him 

back as his and his company's 

accountant. 

6. 09/21/11 John l Waller, Jr., Esq., Is a highly respected attorney who 

Finestone & Richter has known Mr. Zita professionally 

and personally for many years and is 

aware of the hardship placed on Mr. 

Zita and family due to his loss of 

license. 

7. 09/21111 Neil A Santo Tomas, a Highly recommends Mr. Zita and 

Financial Professional at endorses his reinstatement and if 

Paramount Planning gra1:ted, he would become a client 

Group agam. 

During their 17 years· of practice, Respondents Roland Zita and his corporation had only 

RZ-PET028 

4 

PET FOR REINSTMNT OF RSPNDNT'S ACCTG LICS (BUS AND PROFS CODE SEC 5115(a)); 

REQUEST THAT THE BOARD CONDITIONALLY REINSTATE FOR THREE YEAR RSPNDNT'S LICS 

BASED ON FIN'L HARDSHIP (BUS & PROFS CODE SECS 51 07j(2) AND 51 07k)

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5. CONCLUSION 

Throughout the 17 years of practice, Mr. Zita had an impeccable record vvith only one 

blemish resulting in his loss of license \Nhicb destroyed his earning capacity and caused he and 

his wife to deplete all of their assets and be placed in debt. 

The attached Letters of Support from former clients and highly respected CPAs 

overwhelmingly are recommending his reinstatement to the profession he loves, and once again, 

to be a member. Mr. Zita has been offered positions by several CPAs and also several former 

clients with fulllmo-vvleclge of his license revocation and wish hirn to be reinstated so that they 

can become clients of his again. 

In Mr. Barry Nagoshiner's Letter of Support, he stated regarding Mr. Zita, "He wants to 

share his experiences with other Professionals and aspiring Professionals to help them avoid 

finding themselves and their families in the situation he was in." During the most difficult period 

in their lives, his wife, Juliet, has steadfastly stood by his side. 

Mr. Zita is son-y and remorseful for what had occurred and what he has leamed since then 

with new insights. He has accepted and suffered the punishment he and his family has endured 

as a consequence of his actions and he should be given the chance to get his life back together 

again. In the interests ofjustice and fair play, our client deserves the opportunity to again 

become a viable member of his profession by the Board conditionally reinstating Mr. Zita and his 

corporation's licenses as a Ce1iified Public Accountant, subject to repayment ofthe cost 

reimbursement ordered by the Board pursuant to a three-year installment payment agreement 

between Respondents and the Board. 

RZ-PET030 

6 

PET FOR REINSTMNT OF RSPNDNT'S ACCTG LJCS (BUS AND PROFS CODE SEC 5115(a)); 

REQUEST THAT THE BOARD CONDITIONALLY REINSTATE FOR THREE YEAR RSPNDNT'S LJCS 


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Dated: October 26, 2011 Respectfully submitted, 

MATHON & ROSENSWEIG, P.C. 

RZ-PET031 

Attorneys for Respondents R' ¥\..ND ZIT A 

and ROLAND ZITA CERTIFIED PUBLIC 

ACCOUNTANT 

7 

PET FOR REINSTMNT OF RSPNDNT'S ACCTG L!CS (BUS AND PROFS CODE SEC 5115(a)); 

REQUEST THAT THE BOARD CONDJTIONALLY REINSTATE FOR THREE YEAR RSPNDNT'S LICS 


EXHIBIT A 

RZ-PET032

February 1, 2011 

·Department of Consumer Affairs 

California State Board of Accountancy 



Re: Reinstatement of Roland Zita 

Reference CPA License# 57042 

Dear Sir/Madam 

Barry Iv.. Nagoshiner CPA 

15161 \Neddington Street m Van Nuys, C.A. 91411 

Tel 818-986-1333, Ff'X 818-986-1396 

e-Mail: bnncpa@sbcglobal.net 

This letter is in support of the reinstatement of Roland Zita's License to Practice Public 

Accountancy. 

I first met Roland in the mid 1990s as he became active with the Los Angeles Chapter of 

the Society of Califomia Accountants rising through the ranks to become Chapter 

President. I was a past Society State President living and practicing in the San Femando 

Valley and as such, we attended many continuing education and professional society 

professional and social functions together. 

I was saddened and shocked to read in the "Update" about the circumstances surrounding 

and the revocation ofhis CPA Certificate effective November 3, 2007. 

I received a phone call from a mutual CPA colleague stating that Roland was interested 

in having his Certificate reinstated and knowing of our past association, would I be 

willing to write a letter in support of his effort. 

Upholding the integrity of the CPA profession was and is very important to me. In 

addition to my continuing service to the Society of Califomia Accountants, I also 

previously served the State Board, first as a member of the Teclmical Review Panel and 

then multiple te1ms as a member and Chairman of the Continuing Education Committee 

until the Committee was Sunset. 

I said I would write a letter of suppmi subject to my meeting with Roland. I wanted to 

feel comfortable that I could refer a client to him and thai I would still welcome him as a 

professional colleague. 

I mei with Roland last week. We discussed: 

• the Cause for Discipline for which his Certificate was revoked 

• what he had been doing these past three years 

Cil what he could/should have done differently and what new insights the experience 

had brought to him. 

RZ-PET034

FINESTONE & RICHTER 


Board of Accountancy 

September 21, 20 11 

Page 2 

necessary following its investigation of Roland, the revocation of his license and his resulting 

inability to practice as a Certified Public Acconntant for the last three years, constitute sufficient 

punishment for the improper acts that he was found to have engaged in. No legitimate purpose 

would be served by continuing to deny him the right to practice his chosen profession, especially 

as he is a highly talented accountant and tax advisor. 

If the Board has any questions regarding Roland's competence as an accountant 

and tax advisor, his ability to resume practicing as a highly skilled accountant and tax advisor, or 

his renewed devotion to practicing his chosen profession on the highest ethical plane, I am 

available to respond to your inquiries and would be delighted to have the opportunity to explain 

more fully why I believe that his license should be reinstated. 

If you have any questions regarding any aspect of this letter or Roland's 

qualification to resume practicing as a Certified Public Accountant, please contact me. 

JJW:jjw 

RZ-PET046

ATTACHMENTS 

RZ-PET049 THROUGH RZ•PET052 

ARE PROTECTED FROM PUBLIC 

DISCLOSURE PURSUANT TO 

CALIFORNIA GOVERNMENT 

CODE SECTION 6254(N).

I. 






C A I, I F () R N I A 1\ 0 A R 0 0 f.' TELEPHONE: (916) 263-3680 

ACCOUNTANCY 

FACSIMILE: (916) 263-3675 




agency and hereby certifies that the attached documents are a true and correct copy of 

the originals or the original copies of the following pertaining to ROLAND ZIT A and 

ROLAND ZIT A CERTIFIED PUBLIC ACCOUNTANT, A PROFESSIONAL 

CORPORATION contained in the files of this office, and said documents were received 

in the normal course of business. 

• First Amended Accusation No. AC-2004-31, dated July 25, 2006 

• Stipulated Settlement and Disciplinary Order No. AC-2004-31, effective November 3, 

2007 


Paul Fisher 






RZ-PET053

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Disciplinl'l.ry Order. 

Ill 

Ill 

Ill 

Ill 

Ill 

Ill 

Ill 

Ill 

Ill 

Ill 

Ill 

Ill 

Ill 

Ill 

Ill 

Ill 

Ill 

III . 

Ill 

III 

III 

Ill 

3. Cost Reimbursement, As provided in this stipulation, the Board shall 

require payment of its investigation and enforcement charges associated with this proceeding 

prior to its accepting for its consideration a petition for reinstatement or application for licensure, 

Ill 

Stipulated Settlememt and Disciplinary Order Case No, AC-2004-31 

5 

RZ-PET079

STATE OF CALIFORNIA · STATE AND CONSUMER SERVICES AGENCY 

C A !. ! F fJ R N ! A H 0 A R D 0 F 

ACCOUNTANCY 






TELEPHONE: (916) 263-3680 

FACSIMILE: (916) 263-3675 


STATE OF CALIFORNIA ) 

) ss. 



I, Paul Fisher, hereby certify that I am the Supervising Investigative CPA of the 




Board. On December 14, 2011, I made or caused to be made a diligent search of the 

aforesaid files and records concerning the certification and license history of ROLAND 

ZITA. I determined that the official records prepared by various persons employed by 

the California Board of Accountancy, acting within the scope of their duties, show the 

. following license history of ROLAND ZIT A. · 

1. Certificate number 57042 (Certified Public Accountant) was issued to 

ROLAND ZIT A on September 8, 1990, by the state of California, with an expiration 

date of November 30, 1990. 

2. The certificate was subject to renewal every two years pursuant to California 

Business and Professions Code Section 5070.5. The applicable renewal period for 

this certificate began December 1 of even-numbered years. 

3. The certificate was continuously renewed for the renewal periods December 1, 

1990 through November 30, 1992; December 1, 1992 through November 30, 1994; 

December 1 , 1994 through November 30, 1996; December 1 , 1996 through 

November 30, 1998; December 1, 1998 through November 30, 2000; .December 1, 

2000 through November 30, 2002; December 1, 2002 through November 30, 2004; 

and December 1, 2004 through November 30, 2006; and December 1, 2006 

through November 30, 2008, with continuing education ("active"). 

4. Charges of unprofessional conduct were filed against ROLAND ZIT A by the 

California Board of Accountancy in First Amended Accusation No. AC-2004-31, dated 

July 25, 2006. The California Board of Accountancy's decision in the matter of 

Accusation No. AC-2004-31 revoked Certified Public Accountant Certificate 

No. 57042 issued to ROLAND ZIT A, effective November 3, 2007. 

1 RZ-PET082

5. The last address of record for ROLAND ZIT A, Certificate 1\lo. CPA 57042, as 

appearing in the records ·of the California Board of Accountancy, in conformance 

with California Code of Regulations, Title 16, Chapter I, Section 3, is: 

ROLAND ZITA 

9300 Wilshire Boulevard, Suite 300 

Beverly Hills, CA 90212 


intervention. 

This certification is made pursuant to Evidence Code Section 1280 and the authority 

conferred upon me by the California Board of AccountancY,. 

December 14,2011 

PAUL FISHER 






RZ-PET083 

2


C t\ L J f' 0 It N I A B 0 A R fl 0 F 

ACCOUNTANCY 





SACRAMENTO, CA, 95815-3832 

TELEPHONE: (916) 263-3680 

FACSIMILE: (916) 263-3675 

WEB ADDRESS: http:llwww.cba.ca.gov 

STATE OF CALIFORNIA )· 

) ss. 



GOVERNOR EDMUND G. BROWN JR. 

I, Paul Fisher, hereby certify that I am the Supervising Investigative CPA the 




Board. On December 14, 2011, I made or caused to be made a diligent search of the 

aforesaid files and records concerning the certification and license history of ROLAND 

ZITA CERTIFIED PUBLIC ACCOUNTANT, A PROFESSIONAL CORPORATION. I 

determined that the official records prepared by various persons employed by the Board 

of Accountancy, acting within the scope of their duties, show the following license 

history of ROLAND ZITA CERTIFIED PUBLIC ACCOUNTANT, A PROFESSIONAL 

CORPORATION. 

1. Certificate number 3929 (Certified Public Accountancy Corporation) was issued to 

ROLAND ZIT A CERTIFIED PUBLIC ACCOUNTANT, A PROFESSIONAL 

CORPORATION, on September 14, 1993, by the state of California. 

2. The records of the California Board of Accountancy reflect that ROLAND ZIT A, 

holder of California Certified Public Accountant Certificate No. 57042, is the sole 

shareholder in ROLAND ZITA CERTIFIED PUBLIC ACCOUNTANT, A 

PROFESSIONAL CORPORATION. 

3. The certificate was subject to renewal' every two years pursuant to California 

Business and Professions Code Section 5070.5. The applicable renewal period for 

this certificate began June 1 of even-numbered years until 1998. Thereafter, the 

renewal period was changed to begin October 1 of odd-numbered years. 

4. The certificate was current and valid for the period September 14, 1993 through 

June 30, 1998. 

5. The certificate was in a delinquent status for the period July 1, 1998 through 

July 1, 2001. 

1

6. Effective July 2, 2001, the certificate was renewed through September 30, 2001, 

upon receipt of the renewal fee and renewal form. 

7. The certificate was renewed for the period October 1, 2001 through September 30, 

2003. 


2005. 


2007. 

10. Charges of unprofessional conduct were filed against ROLAND ZIT A CERTIFIED 

PUBLIC ACCOUNTANT, A PROFESSIONAL CORPORATION, by the California 

Board of Accountancy in First Amended Accusation No. AC-2004-31, dated July 25, 

2006. The California Board of Accountancy's decision in the matter of Accusation 

No. AC-2004-31 revoked Certified Public Accountancy Corporation Certificate 

No. 3929 issued to ROLAND ZITA CERTIFIED PUBLIC ACCOUNTANT, A 

PROFESSIONAL CORPORATION, effective November 3, 2007. 

11. The last address of record for ROLAND ZIT A CERTIFIED PUBLIC ACCOUNTANT, 

A PROFESSIONAL CORPORATION, Certificate number COR 3929, appearing in 

the records of the California Board of Accountancy, in conformance with California 

Code of Regulations, Title 16, Chapter 1, Section 3, is: 

ROLAND ZIT A CERTIFIED PUBLIC ACCOUNTANT 

A PROFESSIONAL CORPORATION 

9300 Wilshire Boulevard, Suite 300 

Beverly Hills, CA 90212 


intervention. 

This certification is made pursuant to California Evidence Code Section 1280 and the 

authority conferred upon me by the California Board of Accountancy. 

December 14, 201 1 

2 

PAUL FISHER 






RZ-PET085

STATE OF CALIFORNIA·· STATE AND CONSUMER SERVICES AGENCY GOVERNOR EDMUND G. BROWN JR. 

CALIFORNIA BOARO OF 

ACCOUNTANCY 






TELEPHONE: (916) 263-3680 

FACSIMILE: (916) 263-3675 




the original or the original copy of the certificate of completion for the following 

continuing professional education courses for ROLAND ZIT A contained in the files of 

this office, and said documents were received in the normal course of business. 

• Spidell's 2011/2012 Fall Federal and California Tax Update Seminar 

• 2011 Corporate Taxation 

• New Estate Tax Law and Basis Issues 

January 9, 2012 

Paul Fisher 


Enforcement Division · 




RZ-PET086

Agenda Item I. - Department of Consumer Affairs - State of California

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