Certified Public Accountants (CPAs) are highly regulated individuals, and a practice license from the California Board of Accountancy (CBA) is necessary if you want to practice accounting legally. Aside from going through several years of education and training, you must be ready to invest some money to secure a CPA license.

Once you finally receive your CPA license from the CBA, it can become not only your source of pride but also your source of livelihood. Unfortunately, your hard-earned career could be at stake when the licensing board receives a complaint against you about professional misconduct or any other work-related violation.

The CBA treats consumer complaints or criminal allegations against a licensed CPA seriously, and without adequate legal representation, you could face harsh disciplinary actions. While an attorney cannot guarantee the dismissal of the case, he/she can help you secure a desirable outcome.

If you have received an investigation notice from the board or believe a client has filed a complaint against you, our San Bernardino License Attorney attorneys can help. We can help you avoid the board's harsh disciplinary actions or secure a less serious disciplinary action.

The Role of CPAs

In every business, financial records are vital, and that is why most employers retain the services of accountants to help manage their taxes, budget, and other finance-related matters that can make them run afoul of the law. Regardless of the business or firm size, you cannot undermine the benefits of working with a CPA.

Aside from helping business owners comply with the law, a CPA can provide financial insights to help you make future decisions about expanding your business's clientele and revenue growth.

Unfortunately, losing your CPA practice license is easier than securing one, even after investing time and money to become a licensed CPA. Because of your role in managing businesses and company financial matters, as a licensed CPA, you are prone to financial-related accusations like embezzlement or fraud, which could put your license at risk of suspension or revocation.

The board could suspend or revoke your professional license even if you did not intend to commit the alleged violation or misconduct. Additionally, you could find yourself fighting to retain your CPA license when disgruntled employers accuse you of incompetence or carelessness when his/her business fails due to other issues.

When that happens, you would not want to handle the matter alone. A seasoned attorney who understands how important your CPA license is to your livelihood can help prepare defenses to challenge the allegations filed against you for the best possible outcome.

What You Need to Know About CBA

The CBA is the regulatory body responsible for supervising and overseeing professional conduct, licensing, and determining appropriate disciplinary action that a licensed CPA should receive for professional misconduct or violation. Unlike what many accountants believe, the CBA is a consumer-centered agency.

That means its main mission is to protect public members from dishonest and unsavory CPAs who could exploit their financial frustration and naiveté. The CBA takes its duties seriously, and to achieve its mission, it ensures only those individuals and businesses who meet the requirements can secure a license.

Impacts of a Criminal Charge on Your CPA License

Aside from the complaints of professional misconduct, criminal allegations could also jeopardize your CPA practice license. As a licensed CPA, there is a chance that you could face a criminal charge at some point in your career path.

While it is natural to worry if you are under arrest or investigation as a suspect in a criminal case, it does not mean a conviction is inevitable. With the help of your attorney, you could challenge the allegations you are up against to avoid a criminal conviction or secure a lighter sentence.

Winning the allegations you are up against can also help you avoid possible disciplinary actions by the CBA if you are a licensed CPA. However, it is worth noting that the criminal conviction must be significantly related to your profession and duties as a CPA for it to affect your practice license.

The board must decide whether the conviction is related to your duties and qualifications as a CPA. Below is a list of crimes or violations the CBA considers “significantly related” to your duties as a CPA:

  • Evading taxes.
  • Fraud-related crimes.
  • DUID or DUI.
  • Domestic violence or sexual assault.
  • Possession of controlled substances for sale.
  • Simple possession of controlled substances.

If the licensing board believes you are a suspect in a criminal offense, it will work with the Attorney General and DOJ (Department of Justice) to file charges against you. Aside from the several life-changing legal penalties you could face, the board will also revoke your license upon a conviction for an offense related to your duties as a CPA.

Other times, the CBA could file a civil lawsuit against you if your criminal negligence led to underserved financial gain. For all these reasons, you cannot risk handling any criminal allegations or allegations of professional misconduct without an attorney. Your attorney will offer you legal advice and help you challenge the allegations you are up against for the best possible outcome.

What to Expect When a Complaint is Filed Against a Licensed CPA

As a licensed CPA, you can face complaints from different sources, including law enforcement officers, insurance agents, and clients, for various reasons. Below are some of the common violations that put your CPA license in jeopardy:

  • Offering services outside your license’s scope.
  • Practicing accounting without a license.
  • Abetting or aiding tax evasion.
  • Ordinary negligence, gross negligence, or incompetence in your daily duties.
  • Departing from the expected practices of a CPA.
  • Unprofessional conduct.
  • Embezzlement, fraud, forgery, and other white-collar offenses.
  • Breach of your fiduciary duties.

When the CBA receives a complaint against you, it does not mean disciplinary actions are inevitable. The board will first investigate your case to determine whether it is substantiated. The board could dismiss the case if the complaint or allegation you are up against does not have adequate proof or evidence.

However, if the complaint you are up against has some merits, the board will thoroughly investigate the matter. Generally speaking, it could take about five (5) months or more for the board to resolve the complaints or allegations you are up against.

Depending on the facts of your case, the board could suspend your license as the investigation continues, meaning you will not offer your services during that period. However, with the help of your attorney, you can petition the board to allow you to keep practicing what you do best before the investigation ends.

By challenging the allegations or complaints you are up against, your attorney could save your practice license and protect your business reputation. However, if that is impossible due to your unique case, a relentless attorney could strive to negotiate a fair settlement to avoid losing your CPA license, which you need to earn income.

If the board's arguments and evidence are more persuasive than your attorneys', it will file official complaints against you, which will be visible on its website. At this juncture, you or your attorney should file a notice of defense as soon as possible to challenge the complaints you are up against.

If your defense letter works in your favor, the board could dismiss your case without further action. However, sometimes, the board must hold an administrative hearing to determine whether the allegations you are up against are true.

If this hearing is necessary, you will rely on your attorney to help challenge the complaints you are up against before an administrative law judge (ALJ) for the best possible outcome. Your attorney will have a chance to present evidence and mitigating arguments that can convince the ALJ to drop your case or impose a lighter disciplinary action.

Below are a few examples of mitigating arguments your attorney could present at the administrative hearing to secure the best possible outcome:

  • You are not a threat to public safety.
  • The misconduct or violation did not cause another person to suffer a physical injury.
  • You are remorseful for your misconduct.
  • You are now a rehabilitated individual.
  • The breach of fiduciary duty was not serious.
  • Your mistake was due to a sudden provocation.
  • You cooperated with the investigation officers.
  • You did not have the motive or intent to secure a financial gain from your acts.

If these mitigating arguments work to your advantage, the board could dismiss your case or impose less serious disciplinary action like probation. These mitigating arguments could help convince the CBA to impose less strict probation conditions.

On the other hand, the prosecutor could also raise various aggravating arguments to show the ALJ why you deserve harsh disciplinary actions for your violations. Examples of these aggravating factors include (but are not limited to) the following:

  • Your violation was voluntary.
  • Your customer incurred a financial loss.
  • The involved amount of money was high.
  • You have a record of similar violations or misconduct issues.
  • You were aware the other person would incur financial loss.
  • You had the intent to obtain financial benefits.

Fortunately, you do not need to fret if you have a reliable attorney in your corner. Your attorney will fight for your best interests and challenge the allegations you are up against at each stage of the CBA’s disciplinary process to secure a favorable outcome.

If the board decides to revoke your CPA license, your attorney can help you file a reinstatement petition and present necessary evidence to convince the board you deserve this second chance on your career.

How a Seasoned License Attorney Can Help You

If you are a licensed CPA, you cannot overlook the need for an attorney if you have received the CBA's notice of investigation for a complaint filed against you. Here are different ways an attorney can help if you are facing a complaint or criminal allegation that could put your CPA license in jeopardy:

He/she Will Offer You Legal Advice

During the investigation, anything you say to the board-appointed investigating officer could be applied against you during the administrative hearing, minimizing your chances of winning the case.

Fortunately, a seasoned attorney understands this and will be there to ensure you know everything you need about disciplinary cases so you do not have to disclose any information that could affect your chances of winning the case.

He/she Will Help Prepare Your Case’s Defense Arguments

Once you hire an attorney, it will be his/her job to investigate the allegations you are up against and prepare defenses to help challenge them for the best possible outcome. With proper evidence, your attorney could convince the board to drop the case during the initial stages of the investigation process to avoid the uncertainty of the administrative hearing.

He/she Will Help File a Reinstatement Petition

Once the board revokes your CPA license, you cannot continue offering your services unless you secure reinstatement. However, for the board to reinstate your license after revocation, you must wait a certain period and prepare evidence to prove you deserve this second chance to keep helping people and businesses handle their financial records.

Generally speaking, when dealing with law enforcement officers, prosecutors, judges, and licensing boards like the CBA, you will need the services of an experienced attorney to help fight for the best possible outcome. Below are a few factors to consider when seeking the services of a competent attorney for your unique case:

  • Your attorney's reputation.
  • Your attorney's accessibility and availability.
  • Your attorney's cost of services.
  • Your attorney's licensing credentials.
  • Your attorney's qualifications and experience.

Find a Credible Professional License Defense Attorney Near Me

Considering what is at stake if you have received the CBA’s notice of investigation, you would want to work with a competent attorney to help challenge the allegations or complaints you are up against for a favorable outcome. We invite you to call our reliable and reputable attorneys at San Bernardino License Attorney at 909-966-4095 if you are facing a complaint that could jeopardize your CPA license.