Adjudicative Tribunal Decisions – August 2023
The adjudicative committees of CPA Ontario are an independent tribunal that hears and decides disciplinary and regulatory matters referred to it by CPA Ontario and appeals from those matters. The most recent discipline decisions, settlement agreements, good character decisions, and appeal decisions can be found below.
Discipline decisions
James Wilson (1984, Stouffville)
[suspended CPA, CA]
Rule:
Rule 206.1 – Failure to perform professional services in accordance with generally accepted standards of practice of the profession
Conduct:
Between December 1, 2019 and March 22, 2022, the member failed to perform their professional services in accordance with generally accepted standards of practice of the profession while auditing the financial statements of a number of clients.
Finding:
On January 26, 2023, the member was found to have committed professional misconduct by breaching Rule 206.1 of the CPA Ontario Code of Professional Conduct.
Sanction:
Reprimand
$7,500 fine
Prohibited from holding a Public Accounting Licence
Practice restriction
Notice to all members of CPA Ontario, the Public Accounting Standards Committee, and all provincial CPA bodies
Newspaper publication
Costs: $15,000;
Monica E. Banman, CPA, CMA (1990, Hamilton)
Rule:
Rule 202.1 – Failure to perform professional services with integrity and due care
Conduct:
Between June 1, 2009 and June 30, 2018, the member failed to perform their professional services with integrity and due care in that they filed on behalf of their spouse personal tax returns which relied upon charitable donation receipts that did not comply with Canada Revenue Agency guidelines.
Finding:
On February 23, 2023, the member was found to have committed professional misconduct by breaching Rule 202.1 of the CPA Ontario Code of Professional Conduct.
Sanction:
Reprimand
$20,000 fine
Requirement to attend and complete specified professional development courses
Notice to all members of CPA Ontario and all provincial CPA bodies
Costs: $30,000
Paul W. Easterbrook (2014, Mississauga)
[suspended CPA, CA]
Rule:
Rule 201.1 – Maintenance of the good reputation of the profession
Conduct:
In or about May 2022, the member failed to conduct themself in a manner which will maintain the good reputation of the profession and serve the public interest in that they sent unprofessional and sexually suggestive electronic messages to a former student of a CPA Ontario Professional Education Program course for which they were the facilitator.
Finding:
On May 4, 2023, the member was found to have committed professional misconduct by breaching Rule 201.1 of the CPA Ontario Code of Professional Conduct.
Sanction:
Reprimand
$7,500 fine
6 month suspension
Member shall refrain from acting as a facilitator in the CPA Professional Education Program (PEP)
Notice to all members of CPA Ontario and all provincial CPA bodies
Costs: $14,807.67
Christopher L. Cook, CPA, CA (2009, Ilderton)
Rule:
Rule 104.2 – Failure to cooperate with the regulatory process of CPA Ontario
Conduct:
Between August 2, 2022 and January 11, 2023, the member failed to cooperate with the regulatory process of CPA Ontario by failing to reply promptly in writing to communications from the Standards Enforcement department of CPA Ontario, to which a written reply was specifically required.
Finding:
On May 18, 2023, the member was found to have committed professional misconduct by breaching Rule 104.2 of the CPA Ontario Code of Professional Conduct.
Sanction:
Reprimand
$5,000 fine
Notice to all members of CPA Ontario and all provincial CPA bodies
Costs: $2,200
John E. A. Ian Middleton, CPA, CA (1974 [QC], 1986 [ON], Whitby)
Rule:
Rule 104.2 – Failure to cooperate with the regulatory process of CPA Ontario
Conduct:
Between September 28, 2022 and January 11, 2023, the member failed to cooperate with the regulatory process of CPA Ontario by failing to reply promptly in writing to communications from the Standards Enforcement department of CPA Ontario, to which a written reply was specifically required.
Finding:
On May 16, 2023, the member was found to have committed professional misconduct by breaching Rule 104.2 of the CPA Ontario Code of Professional Conduct.
Sanction:
Cooperation with the Professional Conduct Committee
Reprimand
$5,000 fine
Notice to all members of CPA Ontario and all provincial CPA bodies
Costs: $3,200
Gongshu (Grace) Huang, CPA, CGA (2005, Oakville)
Rule:
Rule 104.2 – Failure to cooperate with the regulatory process of CPA Ontario
Conduct:
Between May 20, 2022 and January 11, 2023, the member failed to cooperate with the regulatory process of CPA Ontario by failing to reply promptly in writing to communications from the Standards Enforcement department of CPA Ontario, to which a written reply was specifically required.
Finding:
On May 25, 2023, the member was found to have committed professional misconduct by breaching Rule 104.2 of the CPA Ontario Code of Professional Conduct.
Sanction:
Reprimand
$5,000 fine
Notice to all members of CPA Ontario and all provincial CPA bodies
Costs: $3,000
Settlement decisions
David S. Lazar, CPA, CA (1977, Richmond Hill)
(Settlement Agreement)
Conduct:The member failed to perform their professional services in accordance with generally accepted standards of practice of the profession with respect to multiple review engagements.
Terms:
On March 20, 2023, the following settlement terms were approved:
- $7,500 fine
- Practice restriction
- Immediate and irrevocable surrender of Public Accounting Licence
- Notice to all members of CPA Ontario, the Public Accounting Standards Committee, and all provincial CPA bodies
- Newspaper publication of practice restriction
- $7,000 costs
Good character hearings
If the Registrar is not satisfied that an applicant for registration as a student or admission to membership is currently of good character, the matter may be referred to the Admission and Registration Committee for a decision. The Public Accounting Licensing Board may also refer a person seeking a Public Accounting Licence (PAL) for a good character hearing.
Name: A. K.
Reason for referral:
Conviction of simple assault under the Criminal Code and nondisclosure of the conviction while they were registered as a student with CPA Ontario.
Outcome:
On March 16, 2023, the tribunal found the Applicant to be of good character as the misconduct constituted an impulsive, singular, one-time event, not reflective of a pattern of misconduct; the Applicant was remorseful and had engaged in various rehabilitative efforts; and there was a sufficient passage of time since the misconduct. The tribunal directed the Registrar to admit the Applicant as a member of CPA Ontario, upon them providing proof satisfactory to the Registrar of successful completion of a CPA recognized course or courses, acceptable to the Registrar, of not less than a total of seven and a half hours related to the ethical obligations of a Chartered Professional Accountant.
Name: J. F.
Reason for referral:
Found to have committed three academic offenses of unauthorized collaboration in relation to four assignments during an introductory course at the University of Waterloo.
Outcome:
On May 30, 2023, the tribunal found that the Applicant failed to establish that they were of good character at the time of the hearing and their application for registration as a student with CPA Ontario was refused. The tribunal ordered that the Applicant may reapply for registration as a student with CPA Ontario two years from the date of the Order.