Professional Misconduct

Litigation Engagements

• On behalf of plaintiffs – the shareholders of a business that was sold – who sued their former public accounting firm and a CPA partner of the firm for professional malpractice regarding allegedly negligent advice the CPA partner gave that the net working capital of the business as of the date of sale and proposed earnout provided for in the stock purchase agreement would not be materially affected if the stock purchase agreement required that the relevant financial statements of the business be compliant with generally accepted accounting principles (GAAP) – in state district court in Texas.

• On behalf of defendant/counter-plaintiff – the subsidiary of an SBIC that is a fixed base operator at a large municipal airport – which was sued by its former CEO and CFO for allegedly promised ownership interests in the company to assess the defendant’s counterclaim allegations that the CEO and CFO failed to put a proper employee expense reimbursement system in place and approved inappropriate and improper expense reimbursements for themselves and other company employees – in federal district court in Texas.

• On behalf of defendant – a law firm – that was sued by a property & casualty insurance carrier over the fees it charged for representing the carrier in an underlying lawsuit in which the carrier provided the performance bond for a botched construction job at the Port of Houston — in federal district court in Texas.

• On behalf of defendant – an energy industry software business – that was sued by its former CFO, a CPA, for wrongful termination in which I assessed the CFO’s actions and activities with respect to the rules of professional conduct for Texas CPAs established by the Texas State Board of Public Accountancy – arbitration conducted in Texas.

• On behalf of defendant – a CPA practicing public accounting – who was sued by an Order of Nuns for professional malpractice for allegedly performing services that were not requested, which resulted in overcharges for his services — in state district court in Texas.

• On behalf of the Texas State Board of Public Accountancy – I investigated allegations of misconduct by a Texas CPA serving in the capacity of an expert witness regarding whether he issued reports without review of the books and records of his client, thus placing him in violation of the State of Texas Public Accountancy Act and/or the Rules of Professional Conduct of the Texas State Board of Public Accountancy.

For professional misconduct cases involving taxation, see Federal and State Taxation.

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