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When Accountants Face Criminal Charges

Posted by Dmitry Gorin | Jul 19, 2024

Facing criminal charges in California can be daunting for anyone, but the stakes are particularly high for licensed accountants. Accountants are entrusted with the sensitive financial information of businesses and individuals, and in many cases, violating those fiduciary responsibilities can make an accountant criminally liable.

However, financial crimes aren't the only offenses that can jeopardize an accountant's personal and professional future. Many offenses carry severe legal penalties and can also draw scrutiny from the California Board of Accountancy, potentially threatening an accountant's professional license or certification.

When Accountants Face Criminal Charges
Accounts convicted of a crime involving moral turpitude could face discipline or license suspension.

Accountants are subject to the same laws as everyone else, and like other individuals, they can sometimes become entangled in the complexities of the criminal justice system.

However, when an accountant faces criminal charges in California, the repercussions can extend beyond the courtroom and into their professional life, potentially tarnishing their hard-earned reputation.

California accountants convicted of a misdemeanor or felony offense involving moral turpitude or other misconduct warranting discipline may face reproval or a license suspension or revocation.

Moral turpitude crimes commonly involve crimes of domestic violence, theft, or fraud. They could also be denied a license to those with a criminal history who have not rehabilitated themselves and their moral character.

It underscores the urgent need to obtain skilled legal representation from an experienced California criminal defense attorney at the first indication of trouble and avoid conviction if possible. The California Department of Consumer Affairs (DCA) protects consumers by providing a safe and fair marketplace through oversight, enforcement, and licensure of professions.

What Criminal Charges Can Hurt an Accountant's Career?

Theoretically, being charged with or convicted of any crime can negatively impact your accounting career. However, the offenses most likely to jeopardize your licensure include felony offenses and "crimes of moral turpitude."

In simpler terms, crimes of moral turpitude involve dishonesty, fraud, or actions that severely deviate from accepted standards of morality. These crimes are considered more egregious because they reflect poorly on the accused's character and ability to perform their professional duties with integrity.

Being charged with such crimes can be particularly damaging for accountants entrusted with sensitive financial information and fiduciary responsibilities, potentially derailing their careers.

In other words, the term crime involving moral turpitude refers to crimes involving vile or depraved conduct shocking to a reasonable person. Certain crimes involve moral turpitude, such as offenses involving an intent to defraud or severe crimes.

A "conviction" includes a guilty plea or verdict, acceptance of a no-contest plea, or conviction following a no-contest plea after the judgment was entered. Notably, a deferred entry of judgment does not count as a conviction after Assembly Bill 2138 was implemented as long as the criminal case is dismissed.

What are Examples of Crimes of Moral Turpitude?

Several offenses fall under the category of crimes of moral turpitude, including but not limited to:

  • White Collar Crimes: These include embezzlement, insider trading, bribery, and other forms of financial fraud. Because accountants deal with financial matters, being accused of a white-collar crime can be especially damaging.
  • Fraud: Any deceptive practice that results in personal gain at another's expense, such as tax fraud or falsifying financial documents.
  • Domestic Violence: Though it may not seem related to financial misconduct, domestic violence is considered a crime of moral turpitude due to its violent and unethical nature.
  • DUI (Driving Under the Influence): Repeated offenses or DUIs involving aggravating factors can be classified as crimes of moral turpitude.
  • Illegal Possession: Possession of illegal drugs or weapons can also fall under this category, reflecting poorly on an individual's ethical standards.
  • Sex Crimes: This could include attempted lewd acts on a minor or contributing to the delinquency of a minor.

What Are the Consequences of Criminal Charges?

If convicted of any crime, an accountant will face the same possible consequences as any other individual, as California law provides. Possible penalties include the following:

  • Jail or prison time.
  • Fines.
  • Probation.
  • Restitution.
  • Community service.
  • Mandatory counseling or rehabilitation.

However, in addition to these legal consequences, accountants charged with crimes of moral turpitude face significant professional risks.

The California Board of Accountancy (CBA) holds strict standards for maintaining licensure. Being arrested or convicted of such crimes can initiate disciplinary action, which may include:

  • License Suspension: Temporarily preventing the accountant from practicing.
  • License Revocation: Permanently stripping an accountant of their ability to work in their field.
  • Fines: Monetary penalties for violating state regulations.
  • Disciplinary Hearings: Public proceedings that can damage an accountant's reputation even if they retain their license.

The CBA's primary concern is protecting the public. Therefore, any behavior that doubts an accountant's honesty or reliability is taken very seriously. Even if the criminal charges do not result in a conviction or arrest, the CBA has the authority to investigate any allegation that calls the accountant's competency or trustworthiness into question.

What is the Mandatory Self-Reporting Requirement?

While the courts may automatically report a criminal conviction to the CBA, accountants must also self-report any criminal conviction within 30 days.

If you are convicted of a crime and do not report it, you could face additional disciplinary action from the Board even if the criminal offense itself would not have put your license at risk.

What is the Role of a Criminal Defense Attorney?

Given the severe implications of criminal charges for accountants, securing the services of a California criminal defense lawyer is crucial to minimizing the possible fallout. A skilled attorney can assist in several ways:

  • Legal Representation: Ensuring you receive a fair trial and your rights are protected throughout the legal process.
  • Case Evaluation and Strategy Development: Examine the strengths and weaknesses of the case against you and develop a robust defense strategy.
  • Mitigation of Consequences: Even if a conviction is unavoidable, a competent attorney can work to mitigate the consequences. This might involve negotiating for lesser penalties or advocating for alternatives to incarceration, such as probation or community service.
  • Professional License Defense: A good defense attorney typically has a strong referral network, while license defense is a different legal field than criminal defense. If criminal charges are likely to impact your accountant licensure, your attorney can refer you to a professionally licensed attorney who can assist in that area.

Any conviction deemed "substantially related" to an accountant's qualifications, functions, or duties can bring on Board of Accountancy discipline.

This can include license revocation, suspension, or censure. In other words, these convictions constitute "unprofessional conduct." This is why you need to retain professional help to give you the best chance of a favorable outcome. Contact us for more information. Eisner Gorin LLP is in Los Angeles, CA.

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About the Author

Dmitry Gorin

Dmitry Gorin is a licensed attorney, who has been involved in criminal trial work and pretrial litigation since 1994. Before becoming partner in Eisner Gorin LLP, Mr. Gorin was a Senior Deputy District Attorney in Los Angeles Courts for more than ten years. As a criminal tri...

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