Legacy CMA

Legacy CMA Alberta cases taking place prior to July 1, 2015 were adjudicated under the Regulated Accounting Profession Act (RAPA) that previously governed the legacy accounting designations in Alberta.

Legacy CMA Governing Document:

To confirm the current registration status of any of the registrants referred to below, please go here (for individual members) or here (for firms).

REFERENCE: Discipline Tribunal - 2015.04

FACTS: A registrant shall make, in a complete and appropriate manner, a timely response to any communication from CPA Alberta that contemplates a reply. A registrant shall co-operate in a practice review under part 4 of the RAPA.

UNPROFESSIONAL CONDUCT: The Tribunal found that although there were clearly extenuating circumstances here, the Registrant was unresponsive to requests from the CPA Alberta even after he had returned to work following his convalescence. As a result, the Registrant did not cooperate with the practice review. Thus after due consideration of the verbal and written evidence and the submissions placed before it, the Tribunal finds that the Registrant was guilty of unprofessional conduct in having:

  1. during the period May 28, 2014 to July 14, 2014 failed to respond to numerous requests from the accounting organization’s Practice Review Department staff that they complete the Practice Management Questionnaire, the first step in a practice review; and
  2. failed to cooperate with a practice review under part 4 of RAPA

SANCTIONS:

  1. An oral reprimand;
  2. a fine of $500 per finding of unprofessional conduct;
  3. publication in accordance with sections 96(2) of RAPA and CMA Bylaw 13.07.

REFERENCE: Discipline Tribunal – Dimitrios Jim Stergiou

FACTS: On June 10, 2014, Dimitrios Stergiou pled guilty and was convicted of the following offences under the Criminal Code, R.S.C., 1985,c. C-46:

  • Section 380(1)(a) – Fraud over $5,000;
  • Section 368)(1)(a) – Uttering a forged document; and
  • Section 403(1) – Fraudulent impersonation for gain.

OUTCOME: In accordance with section 106 of RAPA, the discipline tribunal roster chair considered the seriousness of the offences and convened a discipline tribunal. Mr. Stergiou was provided with an opportunity to provide representations. The discipline tribunal cancelled the registration of Dimitrios Jim Stergiou and in accordance with section 94, Mr. Stergiou is to pay costs in the amount of $4,000.

REFERENCE: Discipline Tribunal – David Donaldson

FACTS: Mr. Donaldson was hired by 12345 Alberta Ltd, in or around September 2010 to be their acting President and CEO. He had held this position on two previous occasions between 2001 and 2009, so he was familiar with the responsibilities of the job. In November of 2010, a major component of 12345 Alberta was sold and Mr. Donaldson then focused his attentions, as President of the remaining company product line which now held in a subsidiary. He remained in this role until his dismissal in February of 2014.

UNPROFESSIONAL CONDUCT: The Discipline Tribunal found that some allegations brought against Mr. Donaldson were supported by the evidence provided during the hearing and that he was therefore in breach of numerous Articles and Rules contained in the CMA Alberta Code of Conduct while performing the duties of President & CEO of 12345 Alberta Ltd. in having caused unauthorized and unapproved bonuses to be paid to himself and he set up and funded an unauthorized director's liability account.

SANCTION:

  1. Cancellation of Mr. Donaldson's registration;
  2. Mr. Donaldson is to pay total fines of $25,000;
  3. Mr. Donaldson is to pay costs in the amount of $25,000.

UPDATE:

On May 27, 2020, David Donaldson exercised his right under section 57 of the Chartered Professional Accountants Act, SA 2014, c C-10.2 (CPA Act) to apply for reinstatement of his registration. The Registration Committee of CPA Alberta considered Mr. Donaldson’s application. Having determined that the application met the requirements of section 57(4) of the CPA Act, the Registration Committee ordered the reinstatement of Mr. Donaldson’s registration, effective June 19, 2020.

REFERENCE: Discipline Tribunal Hearing - David Bonneville

FACTS: Between 2008 and 2014, Mr. Bonneville wrote cheques totaling $39,900.00 to himself from a charitable fund bank account operated by his employer. Mr. Bonneville had no legitimate or authorized purpose for writing cheques to himself from the charitable fund. He reimbursed the fund $1,200.00.

UNPROFESSIONAL CONDUCT: The Discipline Tribunal accepted Mr. Bonneville's admission to the allegation that between August 21, 2009 and February 4, 2014, Mr. Bonneville misappropriated approximately $39,900 from his employer. Mr. Bonneville's conduct constitutes "unprofessional conduct" as defined in s.91 of RAPA.

SANCTION:

  1. Mr. Bonneville's registration is hereby cancelled immediately;
  2. Mr. Bonneville will pay a fine in the amount of $20,000.00;
  3. Mr. Bonneville will pay the full costs of the investigation and hearing as set out in the Statement of Costs, to be prepared and served upon him in accordance with Bylaw 13.02;
  4. The fine and costs shall be payable by Mr. Bonneville within 30 days of receiving the statement of costs, or within such other period of time as agreed to by the Discipline Tribunal Secretary;
  5. The Discipline Tribunal directs publication in accordance with Bylaw 13.07, and orders publication of Mr. Bonneville's cancellation of registration as a result of the discipline proceedings in the Edmonton Journal and the Calgary Herald.

REFERENCE: Discipline Tribunal – Miranda Liu

FACTS: In a separate Hearing Ms. Miranda Liu plead guilty to money laundering and to the possession of the proceeds of crime under the Criminal Code. She was sentenced to a conditional sentence of two years less a day.

UNPROFESSIONAL CONDUCT: At the Discipline Tribunal Hearing the Tribunal was satisfied from the evidence before them that this matter involved at least one indictable offence, as required by Section 106 of the Regulated Accounting Profession Act. The Tribunal was also satisfied that the factual underpinnings of the criminal proceedings amounted to unprofessional conduct by Ms. Liu.

SANCTION: The sanction imposed upon Ms. Miranda Liu was the cancellation of her membership with CMA Alberta.

 

REFERENCE: Sanction Agreement – Grace World

FACTS: In the process of her employment, Ms. World received a cheque payable to a former client of her employer. This cheque was deposited into a bank account controlled by Ms. World. In relation to this matter Ms. World has admitted to the following unprofessional conduct:

  1. That she knew or ought to have known that the cheque that she had received and deposited into her own corporation’s bank account belonged to a third party and that she was not entitled to any or all of the Funds;
  2. In depositing the Funds into her own corporation’s bank account, Ms. World failed to segregate the Funds from the balance in the account; and
  3. Ms. World did not make any attempts to determine the actual owner of the Funds.

UNPROFESSIONAL CONDUCT: Ms. Grace World has admitted to unprofessional conduct as she violated Articles IP-3 and IIP-2 and Rules IIR-2(a), VIR-2, VIR-3 and VIR-4 of the CMA Alberta Code of Conduct.

SANCTIONS:

  1. Ms. Grace World shall have her membership with CMA Alberta suspended for six months from the date of approval of the Sanction Agreement by the CIC;
  2. Ms. World has agreed to a pay a global fine in the amount of $25,000; and
  3. Ms. World has agreed to pay all costs associated with the investigation and prosecution of this matter.

The fine and costs are due within 60 days of the final execution of the Agreement.

REFERENCE: Discipline Tribunal Hearing – Melissa Smith

FACTS: Ms. Melissa Smith was hired by her former employer as the Director of Human Resources and eventually progressed to become the Vice President, People and Infrastructure. As a result of her employment Ms. Smith was authorized to enter into contracts on behalf of her former employer and to approve invoices provided to the human resources department. In a report submitted as evidence at the Hearing, which Ms. Smith did not dispute, it appears that she:

  1. had a conflict or perceived conflict of interest with two entities, which were providing services to her former employer;
  2. caused a large number of terminated employee’s personnel files belonging to her former employer to be removed from storage, for the purpose of scanning, which documents were either located at a friend of Ms. Smith’s residence or they were deposited by Ms. Smith into a recycling bin or a land-fill site;
  3. retained certain electronics purchased by her former employer;
  4. claimed expense reimbursements for expenditures for which she had previously received reimbursement;
  5. submitted meal expenses without providing the names of the guests and the nature of the business expense;
  6. had access to $63,057 worth of her former employer’s gift cards which cannot be accounted for;
  7. has been reimbursed for other inappropriate expenses totaling $12,064.60; and
  8. caused her former employer to hire a friend as an instructional designer/facilitator and then had the payroll payments deposited into this friend’s bank account transferred to either Ms. Smith’s partner’s, or to Ms. Smith’s own, bank accounts.

UNPROFESSIONAL CONDUCT:  Ms. Melissa Smith was found guilty of unprofessional conduct as the Tribunal determined that she breached numerous Articles and Rules of the CMA Alberta Code of Conduct. In the opinion of the Tribunal the evidence showed a complete disregard for the interests of her employer and its employees and indicated that Ms. Smith failed to meet the professional and ethical standards expected of a CMA.  Ms. Smith’s breaches were of grave concern to the Tribunal as they felt that her conduct erodes the reputation and integrity of the accounting profession. 

SANCTIONS:

  1. Ms. Melissa Smith’s membership with CMA Alberta is immediately cancelled and Ms. Smith is indefinitely banned from future membership with CMA Alberta or any successor organization;
  2. Ms. Melissa Smith shall pay a fine in the amount of $32,500; and   
  3. Ms. Smith shall pay the costs associated with the investigation and Hearing in the fixed amount of $7,500. 

The Tribunal also directed that a copy of their decision be sent to the Minister of Justice and the Attorney General.

REFERENCE: Sanction Agreement – David Dion

FACTS: Six separate complaints against Mr. David Dion were received by CMA Alberta which included allegations that Mr. Dion: failed to handle trust funds in a proper manner and failed to provide a proper accounting of these funds, failed to provide a proper explanation or proper accounting to his clients as to funds that he received which appear to have gone missing, received funds from his clients as investments or loans and as such placed himself in a conflict of interest, failed to respond to queries of another accountant, was in public practice without being properly registered with CMA Alberta, and lacked the competency regarding the provision of accounting services.  It was also noted that Mr. Dion failed to respond to queries from the CIC Secretary within a reasonable period of time, failed to cooperate with the appointed investigator, failed to uphold the standards of the profession, failed to act properly as a CMA, and brought the profession into disrepute.      

UNPROFESSIONAL CONDUCT: Mr. David Dion admitted that he committed unprofessional conduct by breaching a number of Articles and Rules contained in the CMA Alberta Code of Conduct the particulars of which are detailed in the “Facts” section above. 

SANCTIONS:

  1. Immediate cancellation of Mr. David Dion’s registration with CMA Alberta;
  2. Mr. David Dion will refrain from re-applying for membership with CMA Alberta or any successor organization at any time in the future;
  3. Mr. Dion shall pay a fine in the global amount of $50,000;
  4. Mr. Dion will pay all costs associated with the investigation and prosecution of this matter; and
  5. All costs and fines were to be paid within 60 days of execution of this Agreement.

REFERENCE: Sanction Agreement

FACTS: Two separate complaints against the former member were received by CMA Alberta. Subsequent to failing a practice review and thereby agreeing to cease providing Review Engagement services to his clients, the former member continued to offer Review Engagements to his clients.      

UNPROFESSIONAL CONDUCT:  The former member admitted to unprofessional conduct within the meaning contained in the Regulated Accounting Profession Act in that he breached Article VIIIP-2 of the Certified Management Accountants of Alberta Code of Ethics and Rules by conducting review engagements without providing notice to CMA Alberta contrary to practice restrictions. In all other respects the complaints were dismissed.

SANCTIONS:

  1. The former member was to pay a fine in the amount of $2,500.00;
  2. The former member agreed that he will not, at any time in the future, renew or apply for a reinstatement of his CMA designation or any similar designation with any successor or amalgamated organization; and
  3. Publication of this matter was to be on a no-name basis.

REFERENCE: Discipline Tribunal Hearing – James Yip

FACTS: Seven separate complaints against Mr. James Yip were received by CMA Alberta which included allegations that: Mr. Yip failed to complete certain tax filings, clients experienced difficulties in contacting Mr. Yip despite various and repeated efforts to do so, Mr. Yip failed to complete the services for which he was engaged, and clients experienced difficulties retrieving their personal records from Mr. Yip.  It was also noted that CMA Alberta and the appointed investigator had great difficulty making contact with Mr. Yip.  When Mr. Yip was asked to explain his situation he indicated that he had been experiencing poor health.  It was noted that CMA Alberta was forced to obtain an Order to appoint a Custodian for the purpose of taking over the operation of Mr. Yip’s public practice.    

UNPROFESSIONAL CONDUCT:  The Discipline Tribunal found that all allegations brought against Mr. Yip were supported by the evidence provided during the Hearing and that he was therefore in breach of numerous Articles and Rules contained in the CMA Alberta Code of Conduct.  The Tribunal concluded that, while Mr. Yip may have been experiencing health issues, his failure to make proper arrangements to ensure that his client’s interests were protected and his repeated and ongoing failure to respond to CMA Alberta’s attempts to assist him was unacceptable behavior.

SANCTIONS:

  1. Immediate cancellation of Mr. Yip’s registration with CMA Alberta;
  2. Mr. Yip was to pay all costs associated with the investigation, Custodial Order and the Hearing;
  3. Mr. Yip was to pay a fine in the amount of $20,000; and
  4. All costs and fines were to be paid by November 30, 2014.

REFERENCE: Discipline Tribunal Hearing – Sean Brouillette

FACTS: The former member utilized his corporate credit card to purchase personal items; when company policy only allowed corporate credit cards to be used for company expenses. On five occasions Mr. Brouillette arranged for payment of his wages and, on one occasion, for a bonus to be paid, all without the appropriate withholding taxes being withheld. On numerous occasions, Mr. Brouillette arranged for money to be transferred directly from the company’s bank account into his personal bank account, which payments were outside of the normal salary cycle and were therefore excluded from payroll recognition. 

UNPROFESSIONAL CONDUCT:  The Discipline Tribunal found that all allegations brought against Mr. Brouillette were supported by the evidence providing during the Hearing and that he was therefore in breach of numerous Articles and Rules contained in the CMA Alberta Code of Conduct.      

SANCTIONS:

  1. Immediate cancellation of Mr. Brouillette’s registration with CMA Alberta;
  2. Mr. Brouillette was to pay all costs associated with the investigation and the Hearing;
  3. Mr. Brouillette was to pay fines in the aggregate of $37,500;
  4. All costs and fines were due by September 12, 2014; and
  5. Referral of this matter to the Minister of Justice and the Attorney General. 

REFERENCE: Discipline Tribunal Hearing – Darrell Hoffman

FACTS: The former member plead guilty to a criminal charge of defrauding the Cash Store of property, money, or other security not exceeding $5,000. Mr. Hoffman received a conditional discharge which required that he complete 75 hours of community service and he was placed on 12 months probation. Mr. Hoffman did not initially inform CMA Alberta that he had plead guilty to the criminal charge; even after CMA Alberta questioned him concerning this matter. It was also noted that, in relation to this matter, the former member failed to respond to CMA Alberta within a reasonable period of time.

UNPROFESSIONAL CONDUCT: The Discipline Tribunal found that Mr. Hoffman was guilty of all three charges that were brought against him: failing to inform CMA Alberta of his pleading guilty to a criminal charge, pleading guilty to a charge of fraud and failing to respond to CMA Alberta within a reasonable period of time.

SANCTIONS:

  1. Immediate cancellation of Mr. Hoffman’s registration with CMA Alberta; and
  2. Mr. Hoffman is to pay $2,000.00 towards the costs of the Hearing, which is payable by October 31, 2013.

REFERENCE: Sanction Agreement – Terry Zimmermann, CMA

FACTS: The member is registered in public practice with CMA Alberta. The member received three consecutive “non-comply” ratings from practice reviews conducted on his public accounting firm – Terry Zimmermann Professional Corporation.

UNPROFESSIONAL CONDUCT: Mr. Zimmermann admitted to unprofessional conduct in that he breached Article IP-2 of the CMA Alberta Code of Ethics and Rules and Guidelines of Professional Conduct.

SANCTIONS:

  1. Mr. Zimmermann will immediately cease issuing review engagement reports to any of his clients,
  2. Mr. Zimmermann will not be eligible to issue review engagement reports prior to January 1, 2016,
  3. In order to issue review engagement reports after January 1, 2016, Mr. Zimmermann must apply to CMA Alberta, or any successor entity, and meet any requirements that exist at that point in time regarding registration to provide review engagement reports to the public, and
  4. Mr. Zimmermann was to pay all of the costs associated with the sanction agreement and any investigation costs, which must be paid within 60 days of approval of this agreement by the CIC.

REFERENCE: Sanction Agreement

FACTS: The member is registered in public practice with CMA Alberta. Our member lent funds to one of his clients at a point in time that another client of the firm was in business with that same client. The loan was related to the common business between the two clients. Our member did not inform the second client of the existence of the loan between him and the first client.

UNPROFESSIONAL CONDUCT: The member agreed to plead guilty to breaching Rules IVR-5 and IVR-6 of the CMA Alberta Code of Ethics and Rules and Guidelines of Professional Conduct.

SANCTIONS:

Payment of a maximum of $7,000.00 towards the cost of the prosecution and investigation of the matter. Payment to be provided in full within one month of approval of the Sanction Agreement by the Complaints Inquiry Committee.

REFERENCE: Discipline Tribunal Hearing – David Daurie

FACTS: The member failed to respond to his client in a proper manner. He also did not issue invoices for accounting services rendered and he failed to maintain accounting records to substantiate the services that he had provided to his clients. Mr. Daurie also did not maintain a proper business address.

The Tribunal also determined that Mr. Daurie did not respond to correspondence from CMA Alberta in a timely manner.

UNPROFESSIONAL CONDUCT: The Discipline Tribunal found that Mr. Daurie had not acted in a professional manner, consistent with the expectations of a CMA, and was concerned that such behavior in interaction with members of the public is detrimental to the image of CMA Alberta. The Tribunal determined that Mr. Daurie did not perform his services with the degree of care, diligence and skill which would be exercised in comparable circumstances by a reasonably prudent registrant, in respect of record keeping, billing, client retention and client communications. The Tribunal therefore found that Mr. Daurie had violated article IP-2 of the CMA Alberta Code of Ethics and Rules and Guidelines of Professional Conduct.

The Discipline Tribunal determined that it is the responsibility of the registrant to have an address, physical or electronic, and a telephone number at which CMA Alberta may contact the registrant. The registrant is to provide the information on a regular basis. In this case, either the address provided by Mr. Daurie was a reliable address and Mr. Daurie did not respond; or it was an unreliable address and and Mr. Daurie did not provide an acceptable address. The Tribunal therefore found that Mr. Daurie had violated rule IIR-10 of the CMA Alberta Code of Ethics and Rules and Guidelines of Professional Conduct.

SANCTIONS:

  1. Pay the entire costs of the Hearing,
  2. Mr. Daurie’s membership in CMA Alberta be immediately suspended until the costs of the Hearing have been paid and he has either ceased providing accounting services to the public or he has properly registered to do so, and
  3. Upon meeting the conditions of #2 above, Mr. Daurie may resign as a CMA if he still so desires.

REFERENCE: Sanction Agreement with Mr. Harry Ziel.

FACTS: The member was originally registered in public practice as a professional corporation and most recently as a sole practitioner.

Mr. Harry Ziel admits to unprofessional conduct as he conducted audit, review and/or specified audit procedures and represented himself as a CMA, during a period of time during which he was a suspended member of CMA Alberta.

UNPROFESSIONAL CONDUCT: Mr. Harry Ziel has admitted to unprofessional conduct in that he breached the following sections of the Regulated Accounting Profession Act (“RAPA”) or the CMA Code of Ethics:

  1. Article VIIIP-2 of the Code of Ethics
  2. Section 91(1)(e) of the RAPA
  3. Section 4 of the RAPA,

In that he:

  • carried out audit engagements, review engagements and/or specified audit procedures while suspended as a CMA or despite not being permitted to conduct such engagements,
  • executed a Statutory Declaration representing himself as a CMA, while he was under suspension as a CMA, and
  • represented himself as a CMA to a number of clients, while he was under suspension as a CMA

SANCTIONS:

  1. Mr. Harry Ziel will have his membership in CMA Alberta cancelled immediately and he agrees to not apply for reinstatement of his membership in CMA Alberta at any point in the future.
  2. Mr. Harry Ziel agrees to pay for the costs of this Hearing, to a maximum of $40,000, within 90 days of the approval of this Sanction Agreement by the CIC
  3. Mr. Harry Ziel agrees to pay a fine in the amount of $20,000 which is due within 90 days of the approval of this Sanction Agreement by the CIC

PUBLICATION: Notice of this Sanction Agreement is to be published in a local newspaper and reported to other CMA affiliates across Canada.

REFERENCE: Sanction Agreement.

FACTS: The member is registered in public practice as a sole practitioner.

The member admits to unprofessional conduct as he did not prepare corporate financial statements for his client in a timely manner.

UNPROFESSIONAL CONDUCT: The member admitted to unprofessional conduct as per Article IP-1 of the Code of Ethics as he failed to prepare corporate financial statements for his client in a timely manner.

SANCTIONS:

  1. The member must complete the following courses as offered by the Institute of Chartered Accountants of Alberta: “Time Management for the 21st Century Professional” and one of “Practicing Safe Tax” or “Delegation: Sharing the Load Effectively”. Confirming of registration in these courses must be received by the Complaints Inquiry Committee (“CIC”) Secretary within one month of the CIC approving this agreement.
  2. The member must pay CMA Alberta a fine in the amount of $2,000 by no later than November 30, 2011.
  3. The member must pay $2,500 towards the cost of this Hearing by no later than November 30, 2011.
Failure to complete any of these sanctions by the deadline date provided will result in immediate suspension of the member’s membership in CMA Alberta.

PUBLICATION: Notice of this finding of unprofessional conduct to be published on the CMA Alberta Website and in “Connects”.

REFERENCE: Discipline Tribunal Decision regarding Mr. Gary Pears

FACTS: The member is registered in public practice through a professional corporation.
The Discipline Tribunal determined that, after considering the evidence put forth by the Complaints Inquiry Committee (“CIC”), Mr. Pears demonstrated a general lack of respect for the discipline process through his failure to respond to communications from the CIC Secretary and through his failure to attend this Hearing despite having received proper notice.

UNPROFESSIONAL CONDUCT: The member was found guilty of unprofessional conduct as per Section 91(1) of the Regulated Accounting Profession Act (“RAPA”) by breaching the CMA Code of Ethics as follows:

  • By failing to abide by a Court of Queen’s Bench of Alberta Order, dated February 4, 2010, to provide documents related to his role as Executor in an estate matter, Mr. Pears has brought discredit to the profession as per Rule IIR-1 of the Code of Ethics,
  • Mr. Pears violated Rule IIR-10 of the Code of Ethics when he did not respond in a complete and appropriate manner to communications received from CMA Alberta,
  • Mr. Pears violated Rule 11(b) of the Code of Ethics when he did not cooperate with the investigation or hearing,
  • Mr. Pears violated Article VIP-1 of the Code of Ethics when he engaged in activities outside the profession of accounting that compromised his professional responsibilities as a CMA. Mr. Pears’ conduct was incompatible with the best interests of the public: specifically, Mr. Pears’ failed to follow a Court of Queen’s Bench of Alberta Order, dated February 4, 2010, to produce records and subsequently he was found in contempt of court.

SANCTIONS:

  1. Should Mr. Pears successfully appeal the current cancellation of his registration under the RAPA, dated May 26. 2011, his registration under the RAPA should be cancelled immediately.
  2. Mr. Pears is to pay CMA Alberta a fine in the amount of $20,000 by no later than December 31, 2011.
  3. Mr. Pears is to pay the costs of this Hearing by no later than 90 days after he has been officially informed of the amount of these costs by CMA Alberta (costs determined to be $5,988.06).
PUBLICATION: Notice of this finding of unprofessional conduct and the amount of the fine and costs to be published on the CMA Alberta Website.

REFERENCE: Discipline Tribunal Decision regarding Mr. Gary Pears.

FACTS: The member was registered in public practice through a professional corporation.

The Discipline Tribunal determined that, after considering the evidence put forth by the Complaints Inquiry Committee (“CIC”), Mr. Pears demonstrated a general lack of respect for the discipline process through his failure to respond to communications from the CIC Secretary and through his failure to attend this Hearing despite having received proper notice.

UNPROFESSIONAL CONDUCT: The member was found guilty of unprofessional conduct as per Section 91(1) of the Regulated Accounting Profession Act (“RAPA”) by breaching the CMA Code of Ethics as follows:

  • Mr. Pears violated Article IP-1 of the Code of Ethics when he failed to safeguard client data and/or information: specifically he lost original trust accounting records belonging to his client,
  • Mr. Pears violated Article IP-1 of the Code of Ethics as he was not forthcoming with his client concerning the reasons for not returning that client’s records,
  • Mr. Pears violated Article IIIP-1 of the Code of Ethics as he failed to cooperate with other accountants through his refusal to respond to their requests for information,
  • Mr. Pears violated Rule IIR-10 of the Code of Ethics as he failed to respond in a timely, complete and appropriate manner to communication received from CMA Alberta,
  • Mr. Pears violated Article IP-1 of the Code of Ethics as he did not act in a professional manner as demonstrated by the above conclusions.

SANCTIONS:

  1. Should Mr., Pears successfully appeal the current cancellation of his registration under the RAPA, dated May 26. 2011, his registration under the RAPA should be cancelled immediately.
  2. Mr. Pears is to pay CMA Alberta a fine in the amount of $10,000 by no later than December 31, 2011.
  3. Mr. Pears is to pay the costs of this Hearing by no later than 90 days after he has been officially informed of the amount of these costs by CMA Alberta (costs determined to be $5,853.45).

PUBLICATION: Notice of this finding of unprofessional conduct and the amount of the fine and costs to be published on the CMA Alberta Website.

REFERENCE: Discipline Tribunal decision regarding Mr. Darrell Hoffman, CMA

FACTS: The member agreed to a Sanction Agreement on January 12, 2010. One of the sanctions from this hearing involved notice to his employer of the suspension of his membership in CMA Alberta. Mr. Hoffman indicated to the Sanction Agreement Panel that his employer was HD, when in fact he was also employed by A.

Mr. Hoffman did not respond to correspondence from CMA Alberta regarding this matter within the required time frame.

UNPROFESSIONAL CONDUCT: The member was found guilty of unprofessional conduct as per Article IP-3 and Rule IIR-1 of the Code of Professional Conduct in that he misrepresented the facts concerning his employment to the Sanction Agreement Panel.

The member was also found guilty of unprofessional conduct as per Rule IIR-10 of the Code of Professional Conduct in that he did not respond to correspondence from CMA Alberta within the required time frame.

SANCTIONS:

  1. Mr. Darrell Hoffman must attend Module #3 of the Strategic Leadership Program, entitled Ethical Scenarios and the Code of Conduct being offered in February of 2012,
  2. suspension of his membership in CMA Alberta from May 1, 2011 to July 31, 2011,
  3. payment of $1,000 of the costs of the Discipline Hearing, failure to pay this amount will result in continued suspension of Mr. Hoffman’s membership in CMA Alberta until it is paid in full.

PUBLICATION: Publication of suspension naming Darrell Hoffman for unprofessional conduct on the CMA Alberta website and the CMA Connects Magazine.

REFERENCE: Discipline Tribunal Decision regarding Mr. Gary Pears

FACTS: The member agreed to a Sanction Agreement on June 4, 2010 and did not comply with the third condition of this agreement, which displayed a general disregard for the process.

UNPROFESSIONAL CONDUCT: The member was found guilty of unprofessional conduct as per Section 91 (1) (g) of the Regulated Accounting Profession Act.

SANCTIONS:
  1. Mr. Pears registration as a CMA was immediately cancelled,
  2. a fine in the amount of $5,000, which must be paid prior to August 26, 2011,
  3. payment of the costs of the Discipline Hearing, which must be paid within 90 days of service regarding these costs,
  4. Notice of Mr. Pears’ registration to be made available to the public, by request.
PUBLICATION: Notice of cancellation of Mr. Pears’ registration to be published on the CMA Alberta website and in the Edmonton Journal.

REFERENCE: Discipline Tribunal Decision

FACTS: The member was providing professional accounting services with respect to a voluntary disclosure, and for reasons set out in the judgment, it was incumbent upon the member to utilize a letter of engagement that outlined the services the member was to provide as a basic step in risk management should a later misunderstanding occur. The Discipline Tribunal felt that this should be a basic standard for a competent professional, as failure to do so can lead to serious allegations of incompetence.

UNPROFESSIONAL CONDUCT: The member was found guilty of unprofessional conduct as per Article IP-2 of the CMA Alberta Code of Ethics.

SANCTIONS:

  1. payment of $5,000 towards the costs of the Discipline Tribunal Hearing within 60 days of being invoiced for these costs by CMA Alberta,
  2. completion of the ICAA course entitled “Professional Risk Management: A Practical Perspective” by no later than December 31, 2011.

Failure to complete sanctions #1 and #2 above will result in the immediate revocation of membership in CMA Alberta

PUBLICATION: Summary of decision and sanction reported to CMA general membership on the CMA website.

REFERENCE: Sanction Agreement with Mr. Frederick Yam, CMA

FACTS: The member is in public practice and he received three consecutive “non-comply” ratings resulting from practice reviews conducted on his firm’s review engagement client files.

UNPROFESSIONAL CONDUCT: The member admitted to unprofessional conduct as per Article IP-2 of the CMA Alberta Code of Ethics in that he received a “non-comply” rating in three consecutive practice reviews.

SANCTIONS:

  1. immediately cease to perform review engagements, including those already in progress,
  2. a fine in the amount of $2,000.00,
  3. payment of the costs of the Sanction Agreement Hearing,
  4. provide a properly executed statutory declaration to CMA Alberta indicating that he has resigned from all review engagements, with the provision that he may apply to provide review engagements in the future,
  5. failure to complete sanctions #1 to #4 above, by December 31, 2010 will result in the immediately suspension of Mr. Yam’s membership in CMA Alberta.

REFERENCE: Discipline Tribunal Hearing with Harry Ziel

FACTS:The member entered into a Sanction Agreement with the Complaints Inquiry Committee of CMA Alberta on June 18, 2009. It was determined by a Discipline Tribunal Panel that the member had breached certain portions of his Sanction Agreement being undertakings #1, #5, #6 and #7 of this agreement. The member continued to provide audit engagement services to his clients after he had received another “non-comply” rating for work performed on audit engagement files. Mr. Ziel failed to properly engage the services of a mentor with respect to his audit engagement files by having the mentor review and approve, in writing, all audit engagement files prior to the release of the associated financial statements. Through Mr. Ziel’s failure to enlist the services of a mentor he was unable to meet the requirement to implement all recommendations of the mentor. Finally, Mr. Ziel failed to complete the required professional development courses prior to December 31, 2009. During the Discipline Tribunal Hearing the member admitted to these breaches.

UNPROFESSIONAL CONDUCT: Mr. Ziel was found guilty of unprofessional conduct as per Section 91 of the Regulated Accounting Profession Act in that he failed to abide by the commitments and undertakings made in the Sanction Agreement contained in paragraphs #1, #5, #6 and #7.

SANCTIONS:

  1. Immediate suspension of Mr. Ziel’s membership in CMA Alberta until May 6, 2011 subject to the following conditions:
    • that he attend and complete the following professional development courses prior to May 5, 2011:
      • ICAA - Communicating Skillfully in Critical Situations: The Key to Successful Relationships
      • ICAA – Professional Risk Management: A Practical Perspective
      • ICAA – Quality Assurance
      • ICAA – Audit and Review Engagements: Required Communications
      • that during the period of his suspension Mr. Ziel will not be able to use the CMA designation to gain employment or solicit clients
    • that after his reinstatement Mr. Ziel refrain from using his CMA designation in the practice of public accounting until he has applied for and received approval from the Practice Review Committee to engage in the practice of public accounting in accordance with CMA Alberta’s Bylaws.
  2. Payment of the costs of the Discipline Tribunal Hearing within 45 days of invoicing from CMA Alberta.
  3. A fine in the amount of $15,000 to be paid by September 30, 2010
Failure to comply with any of these conditions within the time period provided will result in the cancellation of registration under this act.

PUBLICATION: Publication of the decision in summary form.

REFERENCE: Sanction Agreement with Gary Pears

FACTS: The member was acting as the manager of a condominium association. There was a disagreement with the Board of Directors of this condominium association and the member resigned his position as manager. After his resignation Mr. Pears refused to return certain records belonging to the condominium association and he did not respond to queries from the auditor for the condominium association in a timely manner. Furthermore, Mr. Pears also did not respond to correspondence which he had received from CMA Alberta in a timely manner. It was also determined that Mr. Pears was in a conflict of interest position pertaining to the manner in which he was declaring the income that he had derived from his position as the manager of the condominium association. Mr. Pears admitted to all of these accusations at his Sanction Agreement Hearing.

UNPROFESSIONAL CONDUCT: Mr. Pears admitted to unprofessional conduct as per Articles IP-2, IIP-1 and VIP-1 of the Code of Ethics and the Rules of Professional Conduct.

SANCTIONS:
  1. A fine in the amount of $5,000 due by July 15, 2010
  2. Payment of the costs of the Sanction Agreement Hearing by July 15, 2010
  3. Engagement Letters between Mr. Pears and his remaining condominium association clients are to be signed and agreed to, with a copy of same to be provided to CMA Alberta by July 15, 2010
PUBLICATION: The general membership of CMA Alberta is to be advised of the fine imposed upon him by through this agreement.

REFERENCE: Sanction Agreement with John W. Marshall

FACTS: The member was offering accounting services (compilation engagements) to the public; however he was not registered with CMA Alberta as a public accounting firm. Mr. Marshall also had not responded to correspondence which he had received from CMA Alberta in a timely manner. Mr. Marshall admitted to both of these accusations at his Sanction Agreement Hearing.

UNPROFESSIONAL CONDUCT: Mr. Marshall admitted to unprofessional conduct as per Articles IP-1, IP-2, IIP-1, VIIIR-3 and VIIIR-4 of the Code of Ethics and the Rules of Professional Conduct.

SANCTIONS:
  1. Immediate resignation of Mr. Marshall’s membership in CMA Alberta
  2. Agreement to not apply for reinstatement as a CMA
  3. A fine in the amount of $2,000 due by May 31, 2011
PUBLICATION: The resignation of Mr. Marshall to be reported to the general membership of CMA Alberta.

REFERENCE: Sanction Agreement with Mr. Darrell Hoffman, CMA

FACTS: The member admitted to completing an audit engagement for remuneration without being properly qualified and registered with CMA Alberta to provide such services. Mr. Hoffman also admitted that he had not cooperated with CMA Alberta and the investigator throughout the complaint resolution process.

UNPROFESSIONAL CONDUCT: Mr. Hoffman admitted to unprofessional conduct as per Articles IP-1, IP-2 and IP-3 and Rules IIR-10, IIR-11(b), VIIIR-4 and VIIIR-7 of the CMA Alberta Code of Ethics and Rules of Professional Conduct.

SANCTIONS:

  1. Payment of a fine in the amount of $10,000, and
  2. Mr. Hoffman’s membership in CMA Alberta will be suspended for a minimum period of one month. His membership may not be reinstated until such time as the fine imposed under #1 above has been paid in full, however payment of the fine is required by no later than January 12, 2011.

PUBLICATION: Notice of Mr. Hoffman’s suspension shall be made to the general membership and to his current employer.

REFERENCE: Sanction Agreement with Mr. Ken Mercer

FACTS: The member was in public practice until the year 2007, at which time he informed CMA Alberta that he had retired from public practice. Subsequent to this, it came to CMA Alberta’s attention that Mr. Mercer had completed at least two Review Engagements in 2008. During his Sanction Agreement Hearing, Mr. Mercer admitted to completing two Review Engagements and to completing a number of other Compilation Agreements without being properly registered to do so with CMA Alberta. Mr. Mercer also admitted to being in Public Practice without the proper public liability insurance.

UNPROFESSIONAL CONDUCT: Mr. Mercer admitted to unprofessional conduct as per Articles IP-1, IP-2, VIIIP-1 and VIIIP-2 of the CMA Alberta Code of Ethics.

SANCTIONS:

  1. Immediate resignation of Mr. Mercer’s membership in CMA Alberta,
  2. An undertaking to not apply for re-admission as a CMA,
  3. Payment of a $1,000.00 fine, and
  4. Payment of the costs of the Sanction Agreement Hearing in the amount of $2,078.76.

PUBLICATION: Resignation of Mr. Mercer to be reported to the general membership of CMA Alberta and to the public.

REFERENCE: Sanction Agreement with Mr. Dale Sutherland

FACTS: The member was employed as the controller of a Calgary-based company. In this position Mr. Sutherland was ultimately responsible for the computerized system that provided accounting information to the management of his employer. It appears that the accounting information which was provided to management from this system was lacking in a number of areas. Furthermore, there was a discrepancy over a number of company payments made to the benefit of Mr. Sutherland.

UNPROFESSIONAL CONDUCT: Mr. Sutherland admitted to unprofessional conduct as per Article IP-3 of the CMA Alberta Code of Ethics by failing to put the interests of his employer above his own, thereby failing to ensure that the accounting controls that were in place, and ought to have been followed, were in fact adhered to.

SANCTIONS:

  1. immediate resignation of Mr. Sutherland’s membership in CMA Alberta;
  2. an undertaking to not apply for re-admission as a CMA; and
  3. payment of costs in the amount of $2,921.12.

PUBLICATION: Resignation of Mr. Sutherland to be reported to the general membership of CMA Alberta.

REFERENCE: Sanction Agreement with Mr. Harry Ziel, CMA

FACTS: The member is in public practice and he received a “non-comply” rating on his firm’s audit client files resulting from three consecutive practice reviews.

UNPROFESSIONAL CONDUCT: The member admitted to unprofessional conduct as per Article IP-2 of the CMA Alberta Code of Ethics in that he received a “non-comply” rating in three consecutive practice reviews.

SANCTIONS:

  1. If the outcome of the next practice review is a “non-comply” rating, with respect to audits, the member will immediately cease to perform audit engagements, including those already in progress;
  2. A fine in the amount of $1,000;
  3. Payment of costs of the Sanction Agreement Hearing;
  4. The member will not accept any new audit engagements until a practice review confirms his compliance with respect to audits and the member will immediately provide a listing of all current audit clients;
  5. The member must engage the services of a mentor, approved by CMA Alberta, with respect to audits and all audit engagement files must be reviewed and approved by the mentor prior to release of the financial statements;
  6. All recommendations of the mentor must be implemented immediately;
  7. Prior to December 31, 2009, the member must attend professional development courses, relating to audit engagements, totalling a minimum of 14 hours and must provide evidence of attendance at these courses; and
  8. The mentor must be provided with a copy of the sanctions relating to his/her role in relation to this agreement.

REFERENCE: Sanction Agreement

FACTS: The member was acting as the property manager for a condominium association for which there was a formal agreement between the member and the association. In his capacity as property manager the member had access to condominium bank accounts and a debit card in the name of the condominium association.

UNPROFESSIONAL CONDUCT: The member admitted to the following unprofessional conduct:

  1. Withdrawing money from the bank account of the condominium association for personal benefit, which at times exceeded the amount that the member was to receive in property management fees.
  2. Preparing monthly financial statements for the board of directors of the condominium association which did not accurately reflect the current financial position and which were not provided in a timely manner.
  3. Failing to return condominium records in a timely manner.

SANCTIONS: A fine in the amount of $5,000, which is to be paid within 18 months of signing the sanction agreement and competency related courses.

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