As professional capital market servants, you regularly purchase goods and services for business reasons. Airfare. […]
Tag: Accountants Behaving Badly
Pretend CPA Is a Real Menace to Society, Says Pretend Doctor
Tamara Tunie – aka the medical examiner in Law & Order SVU – lost well […]
Costa Rican Auditor Admits To Never Actually Auditing
Provident Capital Indemnity Ltd’s former outside auditor admitted in federal court this week to participating in a $670 million fraud in the life settlement bond market, according to the Department of Justice.
56-year-old Jorge Castillo pleaded guilty Monday to one count of conspiracy to commit mail and wire fraud, U.S. Attorney Neil MacBride in Alexandria, Virginia, said in a call with reporters. He could face up to 20 years in prison.
Castillo admitted to conspiring with PCI president Minor Vargas Calvo to prepare false financial statements that reflected contracts PCI held with other reinsurance companies. Castillo admitted to prosecutors that he never audited PCI’s financial statements and that he was aware PCI did not actually enter into the contracts with other reinsurance companies listed on the company’s financials. PCI paid him about $84,000 from 2004 to 2010.
Castillo will be sentenced in a Richmond, VA federal court on May 22.
DOJ: Purported Auditor Of Provident Capital Pleads Guilty In Scheme [WSJ]
Accountant’s Neighbors Disgusted with His Overgrown Bush
It would probably surprise no one that landscaping is hobby that many accountants are fond of. Or maybe it would. Whatever. The meticulousness of making sense of numbers seems to jive well with a finely manicured lawn, trees and bushes that adorn one’s property. Plus, the green thumb matches the eyeshade.
Anyway, putting all that time and energy into natural aesthetics could cause anyone to get a little possessive. If anyone so much as lays a finger on a single tree branch without permission, things could get ugly. To wit:
An accountant who allegedly left a former policeman bleeding and concussed in a brawl over hedge trimming before launching an expensive law suit has defended his response insisting: “It wasn’t just trimmed it was butchered”.
Now if that sounds like a bit of an overreaction, the accountant in question – Anthony Branson – claims that this incident was part of ‘extreme intimidation’ by his neighbors, the Marreros. Intimidation that was ultimately brought to a head:
The next day Mr Marrero, who had been away, sent family to attempt to finish off clipping the hedge, something Mr Branson said further antagonised the situation. He also claims he discovered the gates of the adjoining paddock, where he and his wife Corrinne keep around a dozen alpacas, left open, apparently deliberately.
Trimming a man’s bush without permission could be understandable. But dragging innocent, sometimes overly hairy, camelids into the situation? That just seems uncalled for.
Hedge brawl accountant: ‘It wasn’t just trimmed it was butchered’ [Telegraph]
Threatening to Kill an IRS Employee Over the Phone Is Not Advised
Everybody admires a CPA who is willing to stand up to the IRS for a client. To a point.
A New York CPA went past that point, according to the IRS Office of Professional Responsibility. If the testimony of an IRS agent before an administrative law judge is to be believed, the CPA, George Diehl, is at least guilty of a social faux pas in a conversation with IRS Revenue Officer Miamouna Diakite when she refused to put a 45-day hold on collection of a client account.
From the ALJ opinion:
Diakite stated that Diehl refused to enter into an installment agreement. Diakite testified that he became irate and loud, saying that he had obtained holds on accounts routinely, and asked to speak to Diakite’s supervisor. Diakite told him that, pursuant to IRS procedure, her supervisor would call him within 24 hours. He insisted on talking to her supervisor immediately. Diakite then, also pursuant to protocol, told him that the account was then in “collection status” whereby the IRS “will” levy against Taxpayer 1’s bank account, garnish her salary and obtain liens on her real and personal property.
Diakite testified that Diehl became very upset and said “do you know what I do to people like you. I kill them.” Diakite replied “you don’t mean that, sir” and Diehl replied “I do. I do. I’ll kill you.” Diakite then sat at her desk repeating to herself aloud that Diehl said that he would kill her and he is in New York. She became frightened and then heard a male voice, not Diehl’s, saying “what are you doing?” and the phone was then disconnected.
The opinion never does say who the “male voice” belongs to. Somebody with better manners, perhaps.
The ALJ did believe the agent:
I find that Diehl threatened Diakite. His credibility was shaken by first stating that his words to her was that you are “killing me with your stupidity and then changing that testimony to state that you are “killing me with your bullshit.”
So for all of you aspiring CPAs out there, some lessons:
• Try not to let client tax matters get to a point where you have to argue on a hold for collection.
• Don’t threaten to kill the agents. They don’t like that, and it tends to make it more difficult to get them to help your client.
•Don’t be a pottymouth. That bad language completely blew it with that nice administrative law judge.
(UPDATE) Chicago Area Accountant Charged in Drag-Racing Crash
It really sucks when tragedy is caused by utter stupidity and that’s exactly what we have in the Chicago ‘burbs. Timothy Salvesen, an accountant from Wheaton, was charged with aggravated street racing and leaving the scene of a fatal crash in relation to an incident that occurred back in January.
Killed in the crash were 32-year-old Joseph Paliokaitis of North Aurora, who prosecutors said appeared to be racing with Salvesen as both drove west on Golf Road at speeds that two witnesses estimated at 80 to 90 mph.
The speed limit on that stretch of four-lane road was 55 mph, Assistant State’s Attorney during Salvesen’s bond hearing Tuesday.
As the two westbound lanes merged into one, Paliokaitis apparently lost control of his 2003 Jaguar and rolled into eastbound traffic, striking a 2001 Hyundai Tiburon head-on.
The crash killed its driver, 62-year-old Migdalia Bloch. of Hoffman Estates, who was on her way home from work, McCarthy said.
Salvesen’s attorney said his client, an accountant who has no prior criminal record, will fight the charges that could send him to prison for up to 15 years.
“It’s an unfortunate situation and Tim maintains his innocence,” defense attorney Henry Samuels said.
After poking around a bit, we found a Tim Salvesen on LinkedIn who is a Senior Audit Manager at KPMG and another Tim Salvesen on Facebook who lives in Barlett, IL (a town next to Wheaton) and lists “KPMG” on his networks but we have not confirmed that the “accountant” charged is the “auditor” we found online.
Messages left with a KPMG spokesman, Mr. Samuels, and Tim Salvesen in KPMG’s Chicago office have not been returned.
UPDATE: A couple more reports give us more details that indicate that Salvesen “accountant” is Salvesen “KPMG auditor.” First, the Tribune reports more details of the crash, saying it was “apparently impromptu […]as the men did not know each other.” It also states that Mr. Salvesen is “an ex-Marine” which matches the profile on LinkedIn.
But the mugshot from ABC7 may be the clincher:
This looks a lot like the guy on LinkedIn but now the photo from the profile no longer appears (it’s not just me, DWB confirmed). Regardless, it’s increasingly appears that Salvesen is Salvesen and since no one likes to return our phone calls, we’ll leave it up to you to decide.
37-year-old Wheaton accountant charged in drag-racing crash that killed two [CST]
Man charged with street-racing months after fatal crash [CT]
Accountant charged in drag racing crash that killed 2 [ABC7]
Uncategorized
Autocorrect Claims Randy Accountant as Latest Victim
It’s really the ALLCAPS that makes this awkward text interaction with the accountant embarrassing.
The creepy part about “that was not meant for you” is that it implies that “If anything changes please call MESOHORNY” was meant for some other individual out there. It also likely means that at some point, this accountant used MESOHORNY in a text interaction. We can only imagine in what context.
Keep it classy out there, kids.
[via Damn You, Autocorrect]
Blind Item: Which Accounting Firm Has a Manager Who Recently Scolded a Team of Barnyard Animals?
From the mailbag: “The author is a newly appointed manager and a certified d-bag. His email is serious.”
Hi Guys –
It has come to our attention that there are several people making animal noises around the office. I feel it shouldn’t need to be pointed out that this is not appropriate in the office and can be very uncomfortable/awkward for others. Aside from co-workers, we also have prospects, clients, recruits, etc. walking through the halls on a daily basis. Hearing animal sounds made toward each other does not give a good impression of [a firm who, we are told, is “über-sensitive”] and our abilities to those people. It also does not go unnoticed by partners/senior managers/managers.
Please be mindful of those that could be in your audience. Please see me if you have any concerns or questions.
Thanks,
Okay, team. Lots to discuss here aside from guessing the zoo where these beasts work.
1. I alluded to a noise from a cow, pig, chicken, or maybe even a llama but obviously there is room for other possibilities. Macaws? Beluga whales? Howler monkeys?
2. Are these noises mating calls, expressions of joy, or melancholic song?
3. If our barnyard animals guess is accurate, the firm should ask themselves: why would you hire Goat Boys in the first place?
4. If this some kind of involuntary function, how does one handle this appropriately without running aground of diversity issues?
5. Other thoughts, and obviously guesses to the firm, are welcome at this time.
Embezzling Accountant Will Pay Back Stolen Money and Pay For the Audit That Caught Him
In aren’t you glad these aren’t your internal controls news, former SDN Communications chief accountant Bradley Whitsell of Sioux Falls, SD pleaded guilty to mail fraud on Monday. The U.S. Attorney’s office states that 46-year-old Whitsell used his various oversight positions to embezzle more than $392,000 over a 10 year period beginning in 2000.
According to court documents, Whitsell used company accounts to pay his credit card bills and pay private school tuition. He also wrote checks to himself, redirected electronic payments to cover his expenses, created company checks on his office printer and requested reimbursement for expenses that already were paid by SDN to pay for various personal expenses, including a large landscaping project at his residence and his country club membership.
Whitsell used access to the company’s accounts payable system to change approved vendors’ names with his own, or with those of companies to which he owed money. He would then print out these checks on his office printer and change the names back to the appropriate vendor in the A/P system.
Whitsell could end up in prison for up to 20 years. He initially pleaded not guilty in June to one count each of Mail Fraud and Wire Fraud, each of which could potentially carry a 20 year sentence and a $250,000 fine. U.S. Attorney Brendan Johnson states that Whitsell has agreed to pay back the $392,111.65 and will also cover the $84,000 cost of the audit that uncovered his theft.
SDN CEO Mark Shlanta stated officials started noticing “financial irregularities” connected to Whitsell last year, at which time he was put on administrative leave so the company could conduct a forensic audit and internal investigation. Whitsell resigned before the investigation began (hint: red flag). “It’s been embarrassing for me,” Shlanta said. “I’ve been saddened by the events. Really, I felt betrayed in this past year. Brad was someone I hired and trusted.”
The interesting part of this otherwise droll and useless story is that before the house of cards came crashing down all around him, Whitsell served on the City of Sioux Falls audit committee, not only as a member but as its chair.
Back in June, Sioux Falls Councilor Vernon Brown told one SD blogger that Brad Whitsell received high marks from committee members for his work on the Audit Committee in setting up internal controls for city government. Oh the irony.
Whitsell is currently free on bond and returns to court for sentencing November 7th.
Former SDN accountant pleads guilty to mail fraud [HC]
Former SDN executive admits to mail fraud [AL]
Former IRS Investigator-cum-Accounting Professor Claims He Took Money from 18 Year-old Prostitute ‘To Protect Her,’ Denies Pimp Status
Accounting professors can be a strange lot. This is known. Whether they’re getting ejected from basketball games, taking off their shirts for money or taking their pants for free, there is no shortage of curious behavior.
Then there’s the story of Kemp Shiffer, who was a part-time professor at the University of Nevada-Reno and IRS investigator. Prof Shiffer was arrested on August 3rd when he collected $400 from a 18 year-old prostitute:
The woman told police that before she began prostituting for Kemp Shiffer, he made her “try out” for the job by performing multiple sex acts on him, according to a probable cause affidavit filed in Reno Justice Court to support his Aug. 3 arrest.
After Shiffer took the money from the 18-year-old Eureka, Calif., woman at the Peppermill Resort Casino Spa just before 10 p.m. Aug. 3, detectives of the regional Street Enforcement Team arrested him.
“He spontaneously stated ‘I am not a pimp. I didn’t collect her money as her pimp. I collected it to protect her,’” according to the affidavit filed last week against the 58-year-old.
Apparently this isn’t Shiffer’s first attempt at “protection” as the Reno Gazette-Journal also reports that he quit the IRS after an investigation into his attempt to use “his authority and his badge to secure women to work as prostitutes for him.”
The reader who pointed us to the story simply had this to say, “And he was my favorite accounting professor when I was in school… who knew?”
Hopefully none of your female classmates.
Records: Retired IRS investigator charged with pandering said ‘I am not a pimp’ [RGJ]
Cokehead Accountant Almost Bankrupts His Company By Embezzling His Drug Money
58-year-old Charles Shaffer has been ordered to serve two to four years in prison for stealing nearly $400,000 from his employer to fund a nine-year-long coke habit.
According to testimony, Shaffer stole $381,361 from telecommunications consulting firm Icore Inc. between 2001 and 2010 by writing checks to himself from a medical expense reimbursement employee fund.$381,361 over a nine year period really isn’t that bad of a cocaine habit, unless the guy was buying crap $20 grams from club kids. Think about it… if he was snorting up a really good gram a day at $100 a gram that’s $36,500 a year, but doesn’t take into account high-stress, high-use days like holidays, birthdays, anniversaries and yearly internal audits. Oh wait, obviously they didn’t care about that last one.
“He stole money from Icore, put it up his nose and Icore suffered the consequences,” said Lehigh County Judge Robert L. Steinberg in his decision.
The saddest part of this story (besides the part where the cokehead robs his employer for 9 years and no one seemed to notice) is that Shaffer’s actions very nearly caused the small company, which employs about 15, almost went under had they not had insurance and taken out a loan to stay afloat. “We came pretty close to shutting the doors,” said company VP Paul Kutches in testimony. “(Shaffer) was entrusted to make sure the finances were on the right path.” They were on the right path, alright, straight up his nose. “I would just hope this court imposes a sentence that reminds Mr. Shaffer of stabbing his friends in the back every day,” said Kutches when asked what sort of sentence he’d like to see his former employee receive in this case.
Shaffer started with the company in 1997, however company bank records only go back to 2001. Company officials first contacted investigators in June 2010 when they discovered missing money and Shaffer was arrested the following August. At that time, he signed over his $33,634 company retirement plan and forfeited his $80,000 a year salary.
Now that he’s off the powdered sauce, Shaffer is showing signs of regret for his actions. “There isn’t a day that goes by that I don’t feel remorseful,” he told the judge.
Remember, kids: internal controls are an awesome, awesome thing.
Accountant gets prison for embezzling to buy drugs [Morning Call]
North Carolina Accountant Convicted of Felony Assault and Kidnapping
32-year-old Timothy David Rickman – accused of breaking into the home of ex-girlfriend Michelle Deak in January 2009, stabbing her in the head, burning her arm with a cigarette lighter and choking her, as well as hitting her 8-year-old daughter – has accepted a plea bargain in his bizarre case. Rickman will serve 60 days in jail, with 120 days of electronic monitoring after and 5 years of probation.
If Rickman violates his probation, he could serve at least four years in prison and up to six and a half years.
Rickman’s lawyer Bernard Condlin insists that accepting the plea does not translate into an admission of guilt for his client but states that Rickman takes responsibility for the charges and their consequences (er, isn’t that an admission of guilt?).
We were unable to find a record of Rickman in the North Carolina Board of Accountancy’s database, so it can be assumed he just wasn’t cut out to be a CPA. I guess that means the integrity of the profession isn’t at all dented by this little aggro freak show’s actions?