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Ethics

Disciplinary Matters

Where feasible, disciplinary articles are periodically removed from this site in accordance with the following guidelines:

  • Terminations generally remain on the Web site for a maximum of seven years. If the member has his/her membership reinstated, their article will remain for a minimum of five years or the date of reinstatement, whichever is longer.
  • Suspensions will generally be removed from the Web site one year after the member’s suspension period has ended. Suspensions coincident with the state boards of accountancy will generally be removed when the member has sent notification that their suspension has been lifted by the state board. However, all suspensions will remain on the Web site for a minimum of one year.
  • Admonishments will generally be removed from the Web site one year after the effective date of admonishment.
 

    Gary R. Purwin, Bronxville, N.Y., was disciplined under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline. Purwin’s NYSSCPA membership was suspended for one year, effective Nov. 21, 2016, in connection with the disciplinary action taken by the Securities and Exchange Commission (SEC). Through an “Offer of Settlement,” and without admitting or denying the charges, the SEC denied Purwin the privilege of appearing or practicing before the SEC as an accountant, with the right to apply for reinstatement after one year from the effective date of the SEC’s order. The decision was based on the SEC’s findings that Purwin failed to fulfill his role as the engagement partner on audits, with final responsibility for the audit work on the company’s engagements. Purwin failed to appropriately assess audit risks; establish audit plans to effectively address those risks; properly supervise the audit engagement; and exercise professional skepticism, in light of the indications of fraud that were apparent from the accounting records. (Published September/October 2017).


    Pat A. Mallozzi, Garden City, N.Y., entered into a settlement agreement under the Joint Ethics Enforcement Program, effective Jan. 17, 2017, as a result of an investigation alleging a potential disciplinary matter with respect to his performance of professional services on the audit of the financial statements of an employee benefit plan. Based on a review of the auditor’s report, financial statements and certain other documents, there appears to be evidence of violations of the following rules of the Code of Professional Conduct: Rule 201–General Standards, A. Professional Competence; Rule 203–Accounting Principles; and Rule 501, Interpretation 5–Failure to Follow Requirements of Governmental Bodies, Commissions, or Other Regulatory Agencies. In consideration of the Ethics Charging Authority forgoing any further proceedings in the matter, and without admitting or denying the alleged violations, Mallozzi agreed to his admonishment by the NYSSCPA. He will be required to complete 16.5 hours of specified CPE within three months of the effective date of the agreement. He agrees to provide an attestation immediately, then every six months for a period of three years, that he is no longer performing audit engagements, and separately, that he is no longer performing employee benefit plan audits. If he returns to performing such work, he must complete an additional 31.5 hours of CPE prior to commencing such work, and an additional 8 hours of CPE prior to commencing any employee benefit plan audits. A preissuance review will be required on all audits, separately for employee benefit plan audits, performed by him for one year, followed by a work product review, including a review of workpapers for audit engagements, and separately for employee benefit plan engagements. Within 30 days of returning to employee benefit plan audits, he must provide evidence that his firm has submitted an application to join the AICPA Employee Benefit Plan Audit Quality Center. Mallozzi will be prohibited from serving on any ethics or peer review committees of the NYSSCPA, performing peer reviews, or teaching CPE in accounting and auditing until all directives in the settlement agreement have been met. Compliance with the terms of the settlement agreement will be monitored, and if noncompliance is found, an investigation will be initiated. (Published September/October 2017).


    Domenick F. Consolo, Yorktown Heights, N.Y., was expelled from membership, effective Feb.13, 2017, under the automatic disciplinary provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline, in connection with action taken by the Securities and Exchange Commission (SEC). Specifically, through an “Offer of Settlement,” and without admitting or denying the charges, the SEC denied Consolo the privilege of appearing or practicing before the SEC as an accountant. The decision was based on the SEC’s findings that Consolo, as the audit partner, issued audit reports for fiscal years ending Dec. 31, 2009, through Dec. 31, 2014, stating that an incorporated municipality and a local development corporation’s financial statements were presented fairly, in all material respects, in conformity with generally accepted accounting principles (GAAP), and that the audits were performed in accordance with generally accepted auditing standards (GAAS). These statements were false in that the financial statements were not fairly presented, in all material respects, in conformity with GAAP, and the audits were not performed in accordance with GAAS. (Published September/October 2017).


    Robert A. Waegelein, Pawling, N.Y., was disciplined under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline, in connection with action taken by the Securities and Exchange Commission (SEC). Through an “Offer of Settlement,” and without admitting or denying the charges, the SEC directed Waegelein to cease and desist from committing or causing any violations and any future violations of Section 13(a) of the Exchange Act and Rule 13a-1 thereunder. The decision was based on the SEC’s findings that Waegelein caused an audit firm to lack independence during its 2012, 2013 and 2014 audit and professional engagement periods by maintaining a close personal relationship with the audit partner of the firm. Waegelein was admonished, effective March 23, 2017. (Published September/October 2017).


    Scott Gildea, New York, N.Y., entered into a settlement agreement under the Joint Ethics Enforcement Program as a result of an investigation alleging a potential disciplinary matter with respect to his performance of professional services on the audit of the financial statements of an employee benefit plan. Based on a review of the auditor’s report, financial statements and certain other documents, there appears to be evidence of violations by Gildea of the following rules of the Code of Professional Conduct: Rule 201–General Standards, A. Professional Competence; Rule 202–Compliance with Standards; and Rule 203–Accounting Principles. Without admitting or denying the alleged violations, Gildea agreed to his suspension from membership for a period of two years, effective May 3, 2017. Gildea will be required to complete 18 hours of specified CPE within six months of the effective date of the agreement.

    Gildea agrees to hire an outside party to perform a preissuance review of the reports, financial statements and working papers on five engagements performed by him during the year following the date the reviewer has been approved. Thirty days after the effective date of the agreement, he must submit a list of the highest level of engagements (audits, reviews and compilations with note disclosures) on which he expects to issue reports in the upcoming 12 months. Five engagements will be selected for preissuance review. If he is no longer involved with audits, reviews or compilations with note disclosures, or no longer performs in a supervisory capacity on such engagements, or has not performed such engagements during the specified period, he may be required to attest every six months for three years as to the nature of his practice. If during the attestation period he returns to performing such engagements, he will be required to undergo the preissuance reviews.

    To further comply with the directive, he must submit a list of the highest level of engagements (audits, reviews and compilations with note disclosures) that he performed in the period between the date of completion of those preissuance reviews and the end of the six-month period following completion of the preissuance reviews. One engagement will be selected for review.

    He agrees to provide information on any changes in the composition of his practice, or changes in his role during the period he is subject to the preissuance reviews. If he has not performed any audits, reviews or compilations with note disclosures, he may be required to attest every six months for a period of three years as to the nature of his practice.

    A separate attestation must be provided immediately, then every six months for three years, that he is no longer performing employee benefit plan audits, and if he returns to performing such work, he must complete an additional 20 hours of CPE specific to employee benefit plans prior to commencing such work, and he must undergo a preissuance review of the reports, financial statements and working papers on all employee benefit plan audits performed by him for one year from the date a reviewer has been approved. Within 30 days of returning to such work, he must provide evidence that his firm has submitted an application to join the AICPA Employee Benefit Plan Audit Quality Center.

    Gildea will be prohibited from serving on any ethics or peer review committees of the NYSSCPA; performing peer reviews; or teaching CPE in accounting, auditing and employee benefit plans until all directives in the settlement agreement have been met. Compliance with the terms of the settlement agreement will be monitored, and if noncompliance is found, an investigation will be initiated. (Published September/October 2017).


    Md Hyder Alam, Jamaica, N.Y., was expelled from membership, effective May 15, 2017, under the provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline, and Article XII, Section 3. Impairment of License to Practice Public Accounting, in connection with disciplinary action taken by the New York State Education Department, Board of Regents. Alam submitted an application for permission to surrender his license to practice as a certified public accountant in the state of New York (Calendar No. 28039). The Board of Regents granted the request by vote on March 13, 2017. In said application, Alam admitted guilt to one specification of professional misconduct charging him with being convicted of committing an act constituting a crime under New York state law (Attempted Grand Larceny in the Fourth Degree, a class A misdemeanor). (Published September/October 2017).


    Lawrence J. Herzing, Brewster, N.Y., was expelled from membership, effective May 15, 2017, under the automatic disciplinary provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline, and Article XII, Section 3. Impairment of License to Practice Public Accounting, based on his application for permission to surrender his license to practice as a certified public accountant in the state of New York (Calendar No. 29126), which was approved by vote of the Board of Regents on Sept. 13, 2016. In such application, Herzing did not contest two specifications of professional misconduct in violation of Section 6509(5)(a)(ii) of the New York State Education Law, charging him with being convicted of an act constituting a crime under federal law (Fraud by Wire, Radio or Television, a felony), in violation of 18 U.S.C. Section 1343, and Section 6509(5)(a)(i) (Assault in the Second Degree, a felony), to which he entered a guilty plea. (Published September/October 2017).


    Carlton W. Vogt III, Warwick, N.Y., was suspended from membership for three years under the automatic disciplinary provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline, effective June 7, 2016, in connection with the disciplinary action taken by the Securities and Exchange Commission (SEC). Specifically, through an “Offer of Settlement,” and without admitting or denying the charges, the SEC denied Vogt the privilege of appearing or practicing before the Commission as an accountant, with the right to apply for reinstatement after three years from the effective date of the SEC’s Order. This decision was based on the SEC’s findings that Vogt, in his role as the lead engagement partner, failed to comply with the PCAOB rules and standards in auditing a public company’s financial statements that included its accounting for its Alaska acquisition, and failed to exercise due professional care and skepticism by not adequately assessing whether the company’s accounting treatment for the acquisition complied with GAAP. Vogt also failed to obtain sufficient competent evidential matter for management’s assertions regarding the fair value of the Alaska assets. (Published May/June 2017)


    Andrew Muhlstock, Teaneck, N.J., was suspended from membership in the NYSSCPA for one year, effective Nov. 29, 2016, as a result of a decision by the hearing panel of the Joint Trial Board. The hearing panel found that Muhlstock violated Rule 101–Independence, as supported by Interpretation 505-2–Application of Rules of Conduct to Members Who Own a Separate Business and Interpretation 101-3–Nonattest Services of the Code of Professional Conduct. While Muhlstock was a partner in the accounting firm that provided audit and review services to mutual clients of a separately owned business, which he collectively controlled, he impaired the firm’s independence because clients of the separately owned business wired payroll funds from their bank account directly to the separately owned business bank account, giving the separately owned business custody of clients’ funds. In addition to a suspension from membership, the hearing panel directed Muhlstock to successfully complete the CPE course entitled, Professional Ethics: The AICPA’s Comprehensive Ethics Course, with a grade of 90 percent or above within 60 days of the effective date of the suspension. (Published May/June 2017)


    Mindy Eisenberg-Stark, Scarsdale, N.Y., entered into a settlement agreement under the Joint Ethics Enforcement Program, effective Dec. 14, 2016, as a result of an investigation alleging potential disciplinary matters with respect to her performance of professional services on the audit of a housing cooperative. Based on a review of the auditor’s report, financial statements and other relevant documents, there appeared to be prima facie evidence of violations of the following rules of the Code of Professional Conduct: Rule 201–General Standards, A. Professional Competence; Rule 202–Compliance with Standards; and Rule 203–Accounting Principles. Without admitting or denying the alleged violations, Stark agreed to forgo any further investigation of the matter, waived her rights to a hearing and agreed to her suspension from membership in the NYSSCPA for two years. She agrees to immediately comply with professional standards applicable to the professional services she performs and to complete 32 hours of specified CPE.

    To comply with the directives outlined in the settlement agreement, Stark agrees to hire an outside party to perform a preissuance review of the reports, financial statements and working papers on five engagements performed by her during the year after a reviewer has been approved. Thirty days after the effective date of the agreement, she must submit a list of the highest level of engagements (audits, reviews and compilations with note disclosures) on which she expects to issue reports in the upcoming 12 months. Five engagements will be selected for preissuance review. The outside party will report on her progress in complying with the agreement on a quarterly basis.

    Stark agrees to report any changes in the composition of her practice during the period she is subject to the preissuance reviews, and if she is no longer involved with audits, reviews or compilations with note disclosures, or no longer acts in a supervisory capacity on such engagements, she may be required to attest every six months for three years as to the nature of her practice. If during the three-year attestation period she returns to performing such engagements, she must provide that information and undergo the preissuance reviews.

    Six months after completion of the preissuance reviews and CPE, she will be required to submit a list of the highest level of engagements (audits, reviews and compilations with note disclosures) that she performed in the period between the date of completion of those preissuance reviews and CPE, and the end of the six-month period following the completion of the preissuance reviews and CPE. One will be selected for review. Stark will be prohibited from serving on any ethics or peer review committees of the NYSSCPA, performing peer reviews in any capacity, or teaching CPE in the areas of accounting and auditing, until all directives in the settlement agreement have been met. (Published May/June 2017)


    Mark J. Sudran, Plainview, N.Y., entered into a settlement agreement under the Joint Ethics Enforcement Program, effective Jan. 17, 2017, as a result of an investigation alleging potential disciplinary matters with respect to his failure to ensure that his firm obtained a peer review and in the performance of professional services in connection with the audit of the financial statements of an employee benefit plan. The Ethics Charging Authority (ECA), comprising the AICPA Professional Ethics Executive Committee and the NYSSCPA Professional Ethics Committee, found prima facie evidence of violations of Rule 201–General Standards, A. Professional Competence; Rule 202–Compliance with Standards; Rule 203–Accounting Principles; and Rule 501, Interpretation 501-5–Failure to follow requirements of governmental bodies, commissions, or other regulatory agencies of the Code of Professional Conduct. Without admitting or denying the alleged violations, Sudran agreed to forgo any further investigation of the matter, waived his rights to a hearing and agreed to his suspension from membership in the NYSSCPA for a period of two years.

    To comply with the directives outlined in the settlement agreement, Sudran agrees to provide an attestation every six months for a period of three years that he is no longer performing audit or review engagements. If he returns to performing such work, he agrees to complete 41.5 hours of specified CPE prior to commencing an audit or review engagement, of which 12 hours of specified CPE are required only if he returns to performing audits of employee benefit plans. Sudran agrees to hire an outside party to perform a preissuance review of the reports, financial statements and working papers on all audit and review engagements performed by him for one year from the date a reviewer has been approved. The outside party will report quarterly on his progress in complying with the agreement. Six months after completion of the preissuance review, he must submit a list of the highest level of engagements (audits, reviews and compilations with note disclosures) that he performed in the period between the date of completion of those preissuance reviews and the end of the six-month period following the completion of the preissuance reviews. One engagement will be selected for review. Thirty days after resuming audits of employee benefit plans, he must provide evidence that his firm has submitted an application to join the AICPA Employee Benefit Plan Audit Quality Center. Sudran will be prohibited from serving on any ethics or peer review committees of the NYSSCPA, performing peer reviews in any capacity, or teaching CPE in the areas of accounting and auditing and employee benefit plans, until all directives in the settlement agreement have been met. (Published May/June 2017)


    Mark Holzwanger, Forest Hills, N.Y., entered into a settlement agreement under the Joint Ethics Enforcement Program, effective Feb. 14, 2017, as a result of an investigation by the Ethics Charging Authority (ECA) comprising the NYSSCPA Professional Ethics Committee. Holzwanger was suspended from membership in the NYSSCPA for one year.

    Based on Holzwanger’s responses to interrogatories posed by the ECA, including documents he submitted to support his responses, the ECA found Holzwanger in violation of Rule 101–Independence, as supported by Interpretation 505-2–Application of Rules of Conduct to Members Who Own a Separate Business and Interpretation 101-3–Nonattest Services of the Code of Professional Conduct. While Holzwanger was a partner in the accounting firm that provided audit and review services to mutual clients of a separately owned business, which he collectively controlled, he impaired the firm’s independence because clients of the separately owned business wired payroll funds from their bank account directly to the separately owned business bank account, giving the separately owned business custody of clients’ funds. Holzwanger waived his rights to further investigation and to a hearing under NYSSCPA bylaws, and he neither admitted nor denied the specified charges. He agreed to provide an attestation immediately, then every six months for a period of three years, that he is no longer performing any attest work. If he returns to performing such work, he agrees to successfully complete the CPE course entitled, Professional Ethics: The AICPA’s Comprehensive Ethics Course, with a grade of 90 percent or above. (Published May/June 2017)

    David A. Johnson, Latham, N.Y., was admonished under the automatic disciplinary provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline, effective March 15, 2017, in connection with the disciplinary action taken by the New York State Education Department, Office of Professional Discipline, State Board for Public Accountancy. The State Board suspended Johnson’s license for one year, execution of said suspension was stayed, and he was placed on probation for one year and was fined $500. Johnson did not contest the specification of professional misconduct, which charged him with being convicted of committing an act constituting a crime under New York state law (Attempted Patronizing a Prostitute in the Third Degree). (Published May/June 2017)


    George T. Rhein, of Lake Grove, N.Y., had his membership in the NYSSCPA terminated, effective July 7, 2016 as a result of a decision by a hearing panel of the Joint Trial Board. Rhein was found guilty of violating NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 12. Failure to Cooperate, in that he failed to cooperate with the Ethics Charging Authority in its investigation of his professional conduct by not responding to interrogatories and the request for documents.  (Published ­­­­­­­­­­­­­­­­­­­­­­November/December 2016)


    Reid A. Hackney, of San Antonio, TX, had his membership in the NYSSCPA terminated, effective August 31, 2016, under the provisions of Article XII – Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline, as a result of disciplinary action taken by the Securities and Exchange Commission’s (SEC). Hackney submitted an Offer of Settlement, which the SEC accepted. Specifically, the SEC denied Hackney the privilege of appearing or practicing before the SEC as an accountant. He was prohibited from acting as an officer or director of any issuer that has a class of securities registered to Section 12 of the Securities Exchange Act, for a period of five years. This decision was based on the SEC’s finding that Hackney breached his duty to shareholders by engaging in insider trading of two entities in advance of public announcements, on the basis of material nonpublic information obtained from his employer. Hackney was ordered to pay disgorgement of $48,050, prejudgment interest thereon of $4,670 and a civil money penalty of $48,050, for a total of $100,770 to the SEC for transfer to the general fund of the Unites States Treasury. (Published November/December 2016)


    George L. Louie, Wantagh, N.Y., was suspended from membership under the automatic disciplinary provisions of NYSSCPA bylaws Article XII-Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline, effective December 15, 2015, in connection with the disciplinary action taken by the New York State Education Department, Office of Professional Discipline, State Board for Public Accountancy. The State Board suspended Louie’s license for two years (four months actual suspension, 20 months stayed suspension), with two years’ probation in connection with Superior Court Information charging him with the crime of Offering  A False Instrument for Filing in the Second Degree, in violation of section 175.30 of the New York Penal Law, a class A misdemeanor. Louie entered a plea of guilty in full satisfaction of the Superior Court Information. (Published November/December 2016)


    Alan J. Dlugash, Larchmont, N.Y., was suspended from membership un- der the automatic disciplinary provisions of NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 5. Automatic Discipline, effective Nov. 17, 2015, in connection with the disciplinary action taken by the New York State Education Department, Office of Professional Discipline, State Board for Public Accountancy. e State Board suspended Dlugash’s license for two years (three months actual suspension, 21 months stayed suspension), with two years’ probation in connection with his conviction, upon a plea of guilty, on the sole count of the Information led in the Supreme Court of the State of New York, County of New York, on the charge of Possession of a Sexual Performance by a Child Less than 16. (Published July/August 2016)


    Martin Leventhal,Glen Cove, N.Y., was expelled from membership in the NYSSCPA effective Jan. 2, 2016, as a result of a decision by a hearing panel of the Joint Trial Board. Leventhal was found guilty of violating NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 12. Failure to Cooper- ate, by failing to cooperate with the Ethics Charging Authority in its investigation of his professional conduct by not complying with the directives of a letter of required corrective action. (Published July/August 2016)


    Joseph Morgenstern,Flushing, N.Y., entered into a settlement agreement under the Joint Ethics Enforcement Program, effective April 8, 2016, as a result of an investigation alleging a potential disciplinary matter with respect to his performance of professional services on the audit of the financial statements of an employee benefit plan. Based on a review of the auditor’s report, financial statements and other relevant documents, there appeared to be prima facie evidence of violations of the following rules of the Code of Professional Conduct: Rule 201–General Standards, A. Professional Competence; Rule 202–Compliance with Standards; Rule 203– Accounting Principles; and Rule 501, Interpretation 5–Failure to follow requirements of governmental bodies, commissions, or other regulatory agencies. Without admitting or denying the alleged violations, Morgenstern agreed to forgo any further investigation of the matter, waived his rights to a hearing, and agreed to his suspension from membership in the NYSSCPA for two years. The directives in the settlement agreement included completion of several hours of specialized CPE, and a preissuance review of the reports, financial statements and working papers on five audit engagements performed by him during the year after a reviewer has been approved. Thirty days after the effective date of the agreement, he must submit a list of the audits on which he expects to issue reports in the upcoming 12 months; five engagements will be selected for preissuance review. If any changes in the composition of his practice occur during the period he is subject to the preissuance reviews, and if he is no longer involved with audits or no longer acts in a supervisory capacity on such engagements, he may be required to attest every six months for three years as to the nature of his practice. If during the three-year attestation period he returns to performing such engagements, he will be required to undergo the preissuance reviews. Following completion of the preissuance reviews and CPE, he will be required to submit a list of the highest level of engagements that he performed for a work product review. 

    Morgenstern will also be required to provide an attestation immediately, then every six months for three years, that he is no longer performing employee benefit plan audits. Additional CPE will be assigned if he returns to performing such work, and he will be subject to preissuance reviews on all employee benefit plan audits performed by him for one year. He will be required to submit evidence that his firm has submitted an application to join the AICPA Employee Benefit Plan Audit Quality Center. Morgenstern will be prohibited from serving on any ethics or peer review committees of the NYSSCPA or from performing peer reviews in any capacity. He will be prohibited from teaching CPE in the areas of accounting, auditing and employee benefit plans until all directives in the settlement agreement have been met. (Published July/August 2016)


    Mara Citrin, East Meadow, N.Y., was expelled from membership in the NYSSCPA, effective June 7, 2016, as a result of a decision by a hearing panel of the Joint Trial Board. Citrin was found guilty of violating NYSSCPA bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 12. Failure to Cooper- ate, by failing to cooperate with the Ethics Charging Authority in its investigation of her professional conduct by not responding to interrogatories and request for documents.  (Published July/August 2016)


    Marc Weiselthier, Plainville, N.Y., was expelled from membership in the NYSSCPA, effective July 19, 2016, under Society bylaws Article XII–Professional Conduct and Disciplinary Proceedings, Section 2(a). Criminal Conviction of Member, as a result of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Wieselthier pleaded guilty to conspiracy to commit bank fraud, in violation of Title 18, U.S.C. Section 1349, in the United States District Court for the Southern District of New York, in the case of the United States vs. Marc Wieselthier. Wieselthier was sentenced to 27 months in a correctional facility. (Published July/August 2016)


    John F. Vecchio, of Jericho, N.Y., entered into a settlement agreement under the AICPA Joint Ethics Enforcement Program as a result of an investigation alleging a disciplinary matter with respect to his performance of professional services on the audit of the financial statements for an employee benefit plan. Based on a review of publicly available information, financial statements and workpapers, Vecchio’s responses to inquiries, and documents he submitted to support his responses, there appears to be prima facie evidence of violations of the following Rules of the AICPA Code of Professional Conduct: Rule 202–Compliance with Standards; Rule 203–Accounting Principles; and Rule 501–Acts Discreditable. Without admitting or denying the alleged violations, Vecchio agreed to forgo any further proceedings in the matter. Under the terms of the settlement agreement, Vecchio agreed to waive his rights to a hearing under the bylaws of the NYSSCPA; to comply immediately with Professional Standards applicable to the professional services he performs; to a two-year suspension from membership in the NYSSCPA, effective October 8, 2015; and to the publication of his name and terms of the settlement agreement. The directives include completion of 21.5 hours of specified CPE within six months of the date that he signs the agreement; hiring an outside party to perform a preissuance review of the reports, financial statements, and workpapers on three audit engagements performed by him for one year; followed by a work product review. He agrees to provide an attestation immediately, then every six months for a period of three years, that he is no longer performing employee benefit plan engagements, and if he returns to performing such work, he must complete an additional 16 hours of CPE, hire an outside party to perform a preissuance review on all employee benefit plan audits performed by him for one year, followed by a work product review. If he returns to performing such work, he must submit evidence that his firm has submitted an application to join the AICPA Employee Benefit Plan Audit Quality Center. He will be prohibited from serving on any ethics or peer review committees of the NYSSCPA or from performing peer reviews in any capacity, and teaching CPE in the area of employee benefit plans will be prohibited, until all directives in the settlement agreement have been met. (Published March/April 2016)

    Paul J. Konigsberg, of Greenwich, Conn., was automatically expelled from membership in the NYSSCPA, under Society bylaws Article XII.2–Criminal Conviction of Member, for crimes punishable by imprisonment for more than one year, effective November 24, 2015. A final judgment of conviction was entered in the United States District Court for the Southern District of New York in the case of the United States of America vs. Paul J. Konigsberg. Konigsberg pleaded guilty to violating Title 18, U.S.C. Section 371, Conspiracy to falsify books and records of a broker-dealer; falsify books and records of an investment adviser; and obstruct and impede the due administration of the IRS; and Title 15, U.S.C. Sections 78q(a) and 77ff; 17 CFR 240.17a-3, Falsifying books and records of a broker-dealer and 80b-4 and 80b-17; 17 CFR 275.204-2, Falsifying books and records of an investment adviser. (Published March/April 2016)



    Keith K. Zhen, of Brooklyn, N.Y., was automatically suspended from membership in the NYSSCPA for two years, effective July 23, 2015, under Society bylaws Article XII.5, in connection with the disciplinary action taken by the Public Company Accounting Oversight Board (PCAOB). Specifically, the PCAOB barred Zhen from being an associated person of a registered public accounting firm, with the right to file a petition for Board consent to associate with a registered public accounting firm after two years from the date of the Order. The decision was based on the Board’s findings that Zhen violated PCAOB rules and standards in connection with the audit of five issuer audit clients. 
    (Published March/April 2016)


    Edward Ross, of Garden City, N.Y., entered into a settlement agreement under the Joint Ethics Enforcement Program as a result of an investigation alleging a potential disciplinary matter with respect to his performance of professional services on the audit of the financial statements of an employee benefit plan. Based on a review of the auditor’s report, financial statements and certain other documents, there appears to be evidence of violations of the following rules of the Code of Professional Conduct:  Rule 202—Compliance with Standards; Rule 203—Accounting Principles; and Rule 501, Interpretation 5—Failure to Follow Requirements of Governmental Bodies, Commissions, or Other Regulatory Agencies. Without admitting or denying the alleged violations, Ross agreed to forgo any further proceedings in the matter and was admonished by the NYSSCPA, effective on June 1, 2015. Ross will be required to complete 10 hours of specified CPE; provide an attestation immediately, then every six months for a period of three years that he is no longer performing audit engagements; and, if he returns to performing such work, he must complete an additional 28 hours of CPE, 12 of which apply only if he performs an employee benefit plan audit.  A preissuance review will be required on all audits performed by him for one year, followed by a work product review. Ross will be prohibited from serving on any ethics or peer review committees of the NYSSCPA, performing peer reviews, or teaching CPE in the area of accounting and auditing in any capacity, until all directives in the settlement agreement have been met. (Published August 2015)


    George J. Silverman, of New City, N.Y., was expelled from membership in the NYSSCPA, effective June 19, 2015, as a result of a decision by a hearing panel of the Joint Trial Board. Silverman was found guilty of violating NYSSCPA bylaws Article XII.12, for noncompliance with the directives issued to him by the Professional Ethics Committee in a letter of required corrective action. (Published August 2015)


    Richard B. Davis, of Freehold, N.J., was automatically expelled from membership in the NYSSCPA, effective July 1, 2015, under NYSSCPA bylaws Article XII.3—Impairment of License to Practice Public Accounting, based upon his application for permission to surrender his license to practice as a certified public accountant in the State of New York (Calendar No. 27847), which was approved by a vote of the Board of Regents on Dec. 16, 2014. In such application, Davis admitted guilt to one specification of professional misconduct in violation of 6509(5)(a)(ii) of the New York State Education Law, charging him with being convicted of committing an act constituting a crime under federal law (Knowingly and Willfully Falsifying Material Facts to Obtain Penalty Abatements, a felony, in violation of Title 18 U.S.C. Sections 1001 and 1002). (Published August 2015)


    Dennis L. Duban, of Los Angeles, Calif., was automatically expelled from membership in the NYSSCPA, effective July 1, 2015, under NYSSCPA bylaws Article XII.3—Impairment of License to Practice Public Accounting, based upon his application for permission to surrender his license (Calendar No. 27798), which was approved by a vote of the Board of Regents on Dec. 16, 2014. In such application, Duban did not contest the charge of one specification of professional misconduct in violation of 6509(5)(a)(ii) of the New York State Education Law, charging him with being convicted of committing an act constituting a crime under federal law [Conspiracy to Defraud, a felony, in violation of Title 18 U.S.C. Section 371, and Aiding the Preparation of a False Tax Return, a felony, in violation of Title 26 U.S.C. Section 7206(2)]. (Published August 2015)


    Ilene S. Engelberg, of Hollywood, Fla., was automatically expelled from membership in the NYSSCPA, effective July 1, 2015, under NYSSCPA bylaws Article XII.3—Impairment of License to Practice Public Accounting, based upon her application for permission to surrender her license (Calendar No. 27729), which was approved by a vote of the Board of Regents on Dec. 16, 2014. In such application, Engelberg admitted guilt to one specification of professional misconduct in violation of 6509(5)(a)(i) of the New York State Education Law, charging her with being convicted of committing an act constituting a crime under New York State law (Criminal Facilitation in the Fourth Degree, a class A misdemeanor). (Published August 2015)


    Joseph Troche, of New York, N.Y., was automatically expelled from membership in the NYSSCPA, effective July 2, 2015, under NYSSCPA bylaws Article XII.5—Automatic Discipline, in connection with the disciplinary action taken by the Public Company Accounting Oversight Board—PCAOB File No. 105-2014-007, Notice of Finality of Initial Decision, March 6, 2015. Pursuant to Sections 105(c)(4) and 105(c)(5) of the Sarbanes-Oxley Act and PCAOB Rule 5300(a), Troche was censured, his registration with the PCAOB was permanently revoked and he was ordered to pay a civil money penalty of $5,000. Specifically, he failed to timely file annual reports for 2013 and 2014, and failed to pay annual fees for 2012, 2013 and 2014. (Published August 2015)


    James R. Waggoner, of Kenmore, N.Y., was suspended from membership under the automatic disciplinary provisions of NYSSCPA bylaws Article XII.5, effective Jan. 14, 2015, in connection with the disciplinary action taken by the New York State Education Department, Office of Professional Discipline, State Board for Public Accountancy. The State Board imposed a partial actual suspension in the area of auditing for at least one year and until successful completion of course work in the areas of auditing of foreign entities and professional ethics. Upon termination of the partial suspension, Waggoner was placed on probation for two years and fined $3,000. The PCAOB barred Waggoner from being an associated person of a registered public accounting firm, based on violations of PCAOB rules and auditing standards in connection with a) the audits of three China-based and Taiwan-based issuer clients and b) the improper creation, addition and backdating of audit documentation prior to a board inspection. (Published July 2015)


    Douglas S. Wood, of Malone, N.Y., was expelled from membership in the NYSSCPA, effective Jan. 14, 2015, as a result of a decision by a hearing panel of the Joint Trial Board. Wood was found guilty of violating NYSSCPA bylaws Article XII.12, for failing to cooperate with the Professional Ethics Committee, in that he was negligent in complying with the educational and remedial or corrective action, as directed in a letter of required action. (Published July 2015)


    John B. Renda, of Buffalo, N.Y., entered into a settlement agreement, in lieu of a full investigation. Without admitting any misconduct of alleged violations of the NYSSCPA Code of Professional Conduct, Renda was expelled from membership in the Society, effective May 4, 2015, under the Joint Ethics Enforcement Program as a result of the following violations: Rule 201–General Standards, A–Professional Competence (Renda lacked the professional competence to complete the engagement in accordance with professional standards); Rule 202–Compliance with Standards (the auditor’s report on supplementary information did not comply with professional standards); Rule 203–Accounting Principles (1) the financial statements were inappropriately prepared in accordance with a reporting model applicable to nonprofit entities, though the entity is governmental in nature and is subject to the accounting and reporting standards promulgated by the GASB. In addition, the auditor failed to perform and report on the audit in accordance with Government Auditing Standards, as required by the New York State Office of the State Comptroller; 2) the financial statements omitted the required disclosures); and Rule 501–Acts Discreditable (a member shall not commit an act discreditable to the profession). (Published July 2015)


    Jack Egan, of New Rochelle, N.Y., was expelled from membership in the NYSSCPA effective Jan. 14, 2015, under the automatic provisions of the Society’s bylaws in connection with the disciplinary action taken by the Securities and Exchange Commission (SEC). Specifically, the SEC suspended Egan from appearing or practicing before the Commission as an accountant. This decision was based on the SEC’s allegations that Egan knew or was reckless in not knowing that recognition of fraudulent revenue did not comply with Generally Accepted Accounting Principles in connection with a “Company’s” financial statements, and that, nevertheless, Egan signed the Company’s public filings and included the revenue in the Company’s financial statements for the fourth quarter and fiscal year ended Oct. 28, 2007; and for certifying the Company’s annual reports on Forms 10-K for its fiscal years ended 2007 and 2008, when he knew or was reckless in not knowing that the financial statements were materially false and misleading.(Published February 2015)

    James H. David Jr., of Bethpage, N.Y., was disciplined under the provisions of Article XII.15 of the Society’s bylaws. Effective Oct. 3, 2014, David’s membership was terminated as a result of the Securities and Exchange Commission’s (SEC) disciplinary action. Specifically, the SEC denied David the privilege of appearing or practicing before the Commission as an accountant for 10 years. This decision was based on the SEC’s findings that David, the CFO of a company, engaged in improper professional conduct by: 1) permitting the making of materially false and misleading entries in the financial statements; 2) failing to correct the entity’s financial statements that were materially false and misleading; 3) signing the SEC filings which contained false and misleading information. David stated affirmatively that the financial statements were presented in conformity with generally accepted accounting principles; however the financial statements contained material departures from generally accepted accounting principles for improper revenue recognition. David was also barred from serving as an officer or director of any public company and was ordered to pay $641,620 in disgorgement for gains from his sales of stock while participating in the fraud, plus prejudgment interest thereon, and a $200,000 civil money penalty. David neither admitted nor denied the above specified charges. (Published November 2014)

    Ivan M. Brodzansky, of Garden City, N.Y., was expelled from membership in the NYSSCPA, effective May 14, 2014, as a result of a decision by a hearing panel of the Joint Trial Board. Brodzansky was found guilty of violating NYSSCPA bylaw Article XII.12 for failing to cooperate with the Professional Ethics Committee in an investigation of his alleged unprofessional conduct. (Published November 2014)

    Mark Mycio, of Old Bethpage, N.Y., was automatically disciplined under the provisions of Article XII.5 of the Society’s bylaws. Effective March 18, 2014, Mycio’s membership was terminated as a result of the Securities and Exchange Commission’s (SEC) disciplinary action. The SEC denied Mycio the privilege of appearing or practicing before the Commission as an accountant, based on their findings that he engaged in improper professional conduct in connection with 1) the audit of the 2010 year-end financial statements of a “company” and for violating Section 10A(b)(1) in connection with that audit, and 2) with respect to the audit of the 2011 year-end financial statements of a second “company.” (Published August 2014)

    Steven J. Sherb, of New York, N.Y., was automatically disciplined under the provisions of Article XII.5 of the Society’s bylaws. Effective March 18, 2014, Sherb’s membership was terminated as a result of the Securities and Exchange Commission’s (SEC) disciplinary action. The SEC denied Sherb the privilege of appearing or practicing before the Commission as an accountant, based on their findings that he engaged in improper professional conduct in connection with 1) the audit of the 2007 year-end financial statements of a “company”; and 2) for engaging in improper professional conduct with respect to some or all of the financial statements of a second “company” for the years ended Aug. 31, 2008 and 2009, a four-month transition period ended Dec. 31, 2009, and the years ended Dec. 31, 2010 and 2011. (Published August 2014)

    Christopher A. Valleau, of Boca Raton, Fla., was automatically disciplined under the provisions of Article XII.5 of the Society’s bylaws. Effective March 18, 2014, Valleau’s membership was terminated as a result of the Securities and Exchange Commission’s (SEC) disciplinary action. The SEC denied Valleau the privilege of appearing or practicing before the Commission as an accountant, based on their findings that he engaged in improper professional conduct in connection with 1) the audit of the 2007 year-end financial statements of a “company”; 2) the audit of the 2010 year-end financial statements of a second “company”; and 3) with respect to some or all of the audits of the financial statements of a third “company” for the years ended Aug. 31, 2008 and 2009, a four-month transition period ended Dec. 31, 2009, and the years ended Dec. 31, 2010 and 2011. (Published August 2014)

    James P. Frederick, Norwalk, Conn., was automatically expelled from membership effective April 30, 2012, under Society Bylaw Article XII.2(a), Criminal Conviction of Member—A crime defined as a felony under the law of the convicting jurisdiction. On May 26, 2011, in the Supreme Court of the State of New York, Bronx County, Mr. Frederick pleaded guilty to the crime of Attempted Grand Larceny in the Third Degree, a Class E felony. (Published July 2012)

    David Grant, New York, N.Y., was automatically expelled from membership effective March 15, 2012, under Society Bylaw Article XII.2(a), Criminal Conviction of Member—A crime defined as a felony under the law of the convicting jurisdiction. Mr. Grant pleaded guilty to violating Title 18, U.S.C. Sections 1349 and 1343, Conspiracy to Commit Wire Fraud, in the United States District Court for the Eastern District of New York, and on Feb. 15, 2011, was adjudged guilty of said crime. Mr. Grant’s application to surrender his license was granted by the New York State Board of Regents on Dec. 13, 2011. (Published July 2012)

    Aron J. Sotnikoff, Far Rockaway, N.Y., was automatically expelled from membership effective March 15, 2012, under Society Bylaw Article XII.2(a), Criminal Conviction of Member—A crime defined as a felony under the law of the convicting jurisdiction. On March 11, 2010, Mr. Sotnikoff was convicted, upon a plea of guilty, of Possessing a Sexual Performance by a Child in violation of Section 263.16 of New York Penal Law, in the Queens Supreme Court, Kew Gardens, N.Y. (Published July 2012)

    Michael R. Drogin, Jericho, N.Y., was expelled from membership effective Feb. 16, 2012, following disciplinary action imposed by the Securities and Exchange Commission. Mr. Drogin was charged with violating antifraud provisions of the federal securities laws by issuing fraudulent audit reports and with repeatedly practicing as an accountant before the SEC between 2005 and 2008 during the time that he was barred from doing so, in violation of a 2003 SEC order. As a result of a settlement agreement reached under the Professional Ethics Committee’s Alternative Procedures, Mr. Drogin neither admitted nor denied the specified charges and waived his rights to an investigation and hearing regarding a possible violation of the Code of Professional Conduct of the NYSSCPA. (Published April 2012)

    Richard H. Dickinson, Saratoga Springs, N.Y., was automatically expelled from membership effective Feb. 9, 2012, under Society Bylaw Article XII.3, Impairment of License to Practice Public Accounting, as a result of the revocation of his license to practice public accounting in the state of Maine on Jan. 26, 2010. The Board of Accountancy of the state of Maine cited Mr. Dickinson for performing audits in the state without first obtaining a firm license and for fraud, deceit or misrepresentation in obtaining his personal CPA license by failing to disclose on his license application that he had been disciplined and suspended in the state of New York on July 28, 2008. (Published April 2012)

    David Kreinberg, Teaneck, N.J., was expelled from membership effective Feb. 9, 2012, under Society Bylaw Article XII.2(a), Criminal Conviction of Member—A crime defined as a felony under the law of the convicting jurisdiction. Mr. Kreinberg pleaded guilty to violating Title 18, U.S.C. section 371, Conspiracy to Commit Securities, Mail and Wire Fraud; and Title 15, U.S.C. sections 78j(b) and 78ff, Securities Fraud, in the United States District Court, Eastern District of New York. (Published April 2012)

    Eric J. Fecci, Katonah, N.Y., was expelled from membership in the NYSSCPA effective Dec. 16, 2011, as a result of a decision by a hearing panel of the Joint Trial Board. He was found guilty of violating Rule 506, Interpretation 506-1, Duty to Cooperate, of the NYSSCPA’s Code of Professional Conduct, for failing to cooperate with the Professional Ethics Committee in an investigation of alleged unprofessional conduct. (Published April 2012)

    Ronald L. Simons, Syracuse, N.Y., was automatically expelled from membership effective Dec. 9, 2011, under Society Bylaw Article XII.2(c), Criminal Conviction of Member—The filing of a false or fraudulent income tax return on the member’s or a client’s behalf. Mr. Simons entered a guilty plea to a one-count information, charging him with delivering and disclosing a false return, in violation of 26 U.S.C., section 7207, 18 U.S.C. Section 2 in the United States District Court for the Northern District of New York. (Published April 2012)

    John B. Schuyler, Newburgh, N.Y., was automatically expelled from membership effective Aug. 18, 2011, under Society Bylaw Article XII.2(a), Criminal Conviction of Member—A crime defined as a felony under the law of the convicting jurisdiction. Mr. Schuyler pleaded guilty to attempted grand larceny in the third degree, in the Supreme and County Courts of the State of New York, Orange County. (Published April 2012)

    Isidor Hefter, Woodmere, N.Y., was automatically expelled from membership effective March 24, 2011, under Society Bylaw Article XII.2(b), Criminal Conviction of Member—The willful failure to file any income tax return which the member, as an individual taxpayer, is required by law to file.  Mr. Hefter entered a guilty plea in Nassau County District Court to a misdemeanor violation of Section 1801(a) of the New York State Tax Law for failure to file personal income tax returns for the 2004–2006 tax years. (Published April 2012)

    Kenneth I. Starr, of New York, N.Y., was automatically expelled from membership effective March 21, 2011, under Society Bylaw Article XII.2(a) Criminal Conviction of Member—A crime defined as a felony under the law of the convicting jurisdiction. On March 2, 2011, Mr. Starr pleaded guilty to wire fraud, in violation of Title 18 U.S.C., Section 1343; money laundering, in violation of Title 18 U.S.C., Section 1956; and investment of Title 18. U.S.C., Section 80b-6, in the United States District Court for the Southern District of New York. Mr. Starr was sentences to 90 months in a correctional facility. (Published May 2011)

    Gerald Gartner, of Lawrence, N.Y., was automatically expelled from membership effective Feb. 15, 2011, under Society Bylaw Article XII.2(b), Criminal Conviction of Member—The willful failure to file any income tax return which the member, as an individual taxpayer, is required by law to file. Mr. Gartner entered a guilty plea to a misdemeanor violation of sections 1801 and 1802 of the New York Tax Law in the District Court of Nassau County, First District, for failure to file a 2008 personal income tax return and failure to pay tax liability. (Published May 2011)

    Moishe Zelcer, Brooklyn, NY, was expelled from membership in the NYSSCPA effective Nov. 26, 2010 as a result of a decision by a hearing panel of the Joint Trial Board. The hearing panel found him guilty of violating Rule 506—Communications, Interpretation 506-1, Duty to Cooperate, of the Society’s Code of Professional Conduct for his failure to cooperate with the Ethics Charging Authority in an investigation of his professional conduct.(Published February 2011)