Criminal Defense Lawyers

CPA License Criminal Conviction: What to Do During and After Your Case

If you are a certified public accountant who has been charged with or convicted of a crime and you are reading this page, it likely means you have not yet lost your license. If that is so, you are already in a better position than some people.

You can start preparing now to resolve the Board investigation or disciplinary proceeding as favorably as possible.

The first thing to recognize is that you have been through a stressful situation that would rattle anyone. You have spent years earning your CPA credential, and now a criminal matter threatens everything you have worked for. Perhaps you were even caught off guard by how quickly the Board learned of your case.

It’s normal to feel stressed and even traumatized.

We have represented many CPAs who have been in your situation, and many of them are still practicing today with their licenses intact. Here are our answers to many of the common questions they asked us.

What Does It Mean That I’ve Been Charged With a Crime?

A criminal charge means that a prosecutor has determined there is probable cause to believe you committed an offense. This is an important distinction from proof beyond a reasonable doubt, which is the standard required for a criminal conviction.

Under state professional responsibility rules, Boards of Accountancy have authority to discipline CPAs for conduct that reflects adversely on their fitness to practice. Criminal convictions are typically reported to the Board within 30 days of the judgment.

The fact that you have been charged does not necessarily mean you will lose your license. However, it does indicate that the matter is serious and requires your attention. State Boards generally do not revoke licenses automatically but will examine whether the offense is substantially related to accounting practice.

How Does the Board Learn About My Criminal Case?

To understand where the investigation comes from, let’s review some Board notification procedure.

A Board of Accountancy can learn about your criminal case through several channels. The Board can receive notification through your own self-report, through automatic notification from the Department of Justice, or through a third-party complaint. The last method is less common than you might expect.

In many states, the Department of Justice automatically notifies licensing boards when a licensee is convicted of a crime. This usually happens within 30 days of the conviction. Most importantly, this means the Board may already know about your case even if you have not reported it yourself. The Board’s enforcement file can run many dozens of pages for complicated cases.

A Board analyst will conduct an initial review and determine whether formal investigation is warranted. It is an ex parte proceeding—meaning you have no right to be involved at this stage. The analyst’s recommendation is then forwarded to the enforcement committee for further action.

Did I Make a Mistake by Not Reporting Sooner?

If you delayed reporting your conviction to the Board, you may be concerned about the consequences. This is understandable.

It is common for CPAs to wait before self-reporting, hoping the criminal case will resolve favorably. This is often their only chance to see how the case develops before triggering a Board investigation. They do not want to pass up this opportunity.

If you did delay your report beyond the required timeframe, this may have an impact on your case because failure to report is itself a violation. On the other hand, it may not be nearly as bad as you think. What you reported and when, of course, is very important in determiing how it will affect the Board’s view of your case.

You should discuss your reporting timeline with your attorney and assess the likely impact on your case.

Can I Get My Criminal Record Sealed or Expunged?

You may be able to get your record sealed or expunged. Individuals who have completed their sentences have a right under many state laws to petition for expungement. They must meet certain eligibility requirements depending on the offense.

Courts have held that expungement can provide relief from certain collateral consequences of a conviction. It depends on the particular state’s laws and the type of offense involved. If you qualify for expungement, you may be able to limit the damage to your professional reputation.

Of course, Boards of Accountancy are well aware of expungement laws, and most states exempt licensing boards from being bound by expungement orders. Nevertheless, there are more than a few reported cases of expungement being considered favorably by Boards as evidence of rehabilitation, so you should definitely discuss this possibility with your attorney.

What Happens After the Board Opens an Investigation?

The Board’s enforcement staff will review the materials and prepare a summary for the committee. The enforcement analysts will assess the severity of the offense and any aggravating or mitigating factors. If there are multiple violations, the analysts will evaluate each one separately. The evidence can be used to support formal discipline, or simply result in a letter of concern.

If formal charges are brought, you will receive an Accusation or similar charging document.

You may be wondering how long this process takes. In most cases, the investigation phase lasts several months before a decision is made on whether to proceed with formal discipline. If the offense is minor and isolated, you should be able to resolve the matter with minimal consequences.

If you receive a formal Accusation, you may be able to request an administrative hearing to contest the charges. This will depend on your state’s procedures and deadlines. Administrative procedure laws allow people who are facing professional discipline to present evidence and cross-examine witnesses.

Will I Definitely Lose My License?

You will not necessarily lose your license. The first question to ask is: what was the nature of the offense? If the crime was unrelated to accounting or financial matters, perhaps the Board will view it less seriously.

Secondly, even if the offense was serious, you may not face revocation. A Board investigation that has gotten to the point of formal charges is pretty far along, but it may still result in a lesser sanction such as probation or suspension. Perhaps the Board will consider your years of clean practice and strong rehabilitation evidence.

If you are able to retain experienced counsel for your defense, that person may be able to help you negotiate a favorable outcome. At our firm, we have been involved in several Board proceedings where our clients faced serious charges, and they kept their licenses with conditions.

Can I Challenge the Board’s Proposed Discipline?

If the Board proposes to revoke or suspend your license, you can challenge the proposed discipline. Your attorney can do this by filing a Notice of Defense and requesting an administrative hearing.

There are many potential ways to challenge Board discipline. This in itself is a subject that can fill up not one book, but entire sets of books. But here are a few basic examples:

• The conviction is not substantially related to accounting practice
• The Board failed to follow proper procedures in its investigation
• The proposed discipline is disproportionate to the offense
• You have demonstrated significant rehabilitation since the conviction
• The underlying conduct does not reflect on your current fitness to practice
• Mitigating circumstances were not properly considered
• The passage of time since the offense supports a lesser sanction
• Your record of professional service and community involvement warrants leniency

Discipline can be challenged if it is disproportionate. For example, if a CPA with 20 years of unblemished practice receives a first-offense DUI conviction unrelated to client work, revocation may be disproportionate to the offense and the evidence of rehabilitation should support a lesser sanction.

What Should I Do Right Now?

The most important thing you can do is retain experienced professional license defense counsel. An attorney who regularly practices before state Boards of Accountancy will understand the process and can begin protecting your interests immediately.

Here is what we recommend:

First: Do not speak to Board investigators without consulting an attorney. Your statements can be used against you in the administrative proceeding. Everything you say may become part of the record.

Second: Do not attempt to hide or minimize the conviction. This could result in additional charges for dishonesty or failure to cooperate.

Third: Gather all documents related to your criminal case while they are readily available. Note the charges, disposition, sentence, and any rehabilitation steps you have taken. This information may be valuable later.

Fourth: Contact a professional license defense attorney as soon as possible. At our firm, we have helped many clients protect their CPA licenses after criminal convictions. In some cases, we have been able to prevent any formal discipline from being imposed.

If you would like to discuss your situation with us, please call (212) 300-5196. We are available to speak with you about your case.