Several recent significant cases were summarized for the Boards by Noel Allen, NASBA outside legal counsel, at the Regional Meetings. These included:

  • Conley v. Conley (U.S. Dist. Ct., SD Cal.)- Implication – A State Board is not liable for damages in federal court for continuing to license an incompetent or dishonest CPA.
  • Re Johnson (NC Supreme Court, May 2018) – Implications – How failed peer review can lead to discipline. The court understood the public protection purpose behind enforcement of engagement contract compliance.
  • Millard v. Accountancy Board of Ohio (Ct. Appeals 2017) – No matter what you call it, stealing is a dishonest act.
  • Wiltfong v. California State Board of Accountancy (WD Texas 2018) – Named 130 defendants including AICPA, NASBA, State Boards, universities, major accounting firms and others for violating Sherman Antitrust Act, RICO and various Constitutional provisions and U.S. treaties. Court dismissed on its own motion, citing the plaintiff’s “meritless claims.

    Mr. Allen also noted that in January 2018 the U.S. Attorney General repealed the prior Department of Justice’s Cole Memo, advising “nationwide guidance specific to marijuana enforcement is unnecessary and is rescinded.” Eleven State Boards of Accountancy have adopted some form of benign neglect as to taking disciplinary action against CPAs who are operating within the bounds of state law.

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