Internal Revenue Bulletin:  2008-22 

June 2, 2008 

Announcement 2008-52

Announcement of Disciplinary Sanctions From the Office of Professional Responsibility


Table of Contents

The Office of Professional Responsibility (OPR) announces recent disciplinary sanctions involving attorneys, certified public accountants, enrolled agents, enrolled actuaries, enrolled retirement plan agents, and appraisers. These individuals are subject to the regulations governing practice before the Internal Revenue Service (IRS), which are set out in Title 31, Code of Federal Regulations, Part 10, and which are published in pamphlet form as Treasury Department Circular No. 230. The regulations prescribe the duties and restrictions relating to such practice and prescribe the disciplinary sanctions for violating the regulations.

The disciplinary sanctions to be imposed for violation of the regulations are:

Disbarred from practice before the IRS—An individual who is disbarred is not eligible to represent taxpayers before the IRS.

Suspended from practice before the IRS—An individual who is suspended is not eligible to represent taxpayers before the IRS during the term of the suspension.

Censured in practice before the IRS—Censure is a public reprimand. Unlike disbarment or suspension, censure does not affect an individual’s eligibility to represent taxpayers before the IRS, but OPR may subject the individual’s future representations to conditions designed to promote high standards of conduct.

Monetary penalty—A monetary penalty be imposed on an individual who engages in conduct subject to sanction or on an employer, firm, or entity if the individual was acting on its behalf and if it knew, or reasonably should have known, of the individual’s conduct.

Disqualification of appraiser—An appraiser who is disqualified is barred from presenting evidence or testimony in any administrative proceeding before the Department of the Treasury or the IRS.

Under the regulations, attorneys, certified public accountants, enrolled agents, enrolled actuaries, and enrolled retirement plan agents may not assist, or accept assistance from, individuals who are suspended or disbarred with respect to matters constituting practice (i.e., representation) before the IRS, and they may not aid or abet suspended or disbarred individuals to practice before the IRS.

Disciplinary sanctions are described in these terms:

Disbarred by decision after hearing, Suspended by decision after hearing, Censured by decision after hearing, Monetary penalty imposed after hearing, and Disqualified after hearing—An administrative law judge (ALJ) conducted an evidentiary hearing upon OPR’s complaint alleging violation of the regulations and issued a decision imposing one of these sanctions. After 30 days from the issuance of the decision, in the absence of an appeal, the ALJ’s decision became the final agency decision.

Disbarred by default decision, Suspended by default decision, Censured by default decision, Monetary penalty imposed by default decision, and Disqualified by default decision—An ALJ, after finding that no answer to OPR’s complaint had been filed, granted OPR’s motion for a default judgment and issued a decision imposing one of these sanctions.

Disbarment by decision on appeal, Suspended by decision on appeal, Censured by decision on appeal, Monetary penalty imposed by decision on appeal, and Disqualified by decision on appeal—The decision of the ALJ was appealed to the agency appeal authority, acting as the delegate of the Secretary of the Treasury, and the appeal authority issued a decision imposing one of these sanctions.

Disbarred by consent, Suspended by consent, Censured by consent, Monetary penalty imposed by consent, and Disqualified by consent—In lieu of a disciplinary proceeding being instituted or continued, an individual offered a consent to one of these sanctions and OPR accepted the offer. Typically, an offer of consent will provide for: suspension for an indefinite term; conditions that the individual must observe during the suspension; and the individual’s opportunity, after a stated number of months, to file with OPR a petition for reinstatement affirming compliance with the terms of the consent and affirming current eligibility to practice (i.e., an active professional license or active enrolled agent status). An enrolled agent or an enrolled retirement plan agent may also offer to resign in order to avoid a disciplinary proceeding.

Suspended by decision in expedited proceeding, Suspended by default decision in expedited proceeding, Suspended by consent in expedited proceeding—OPR instituted an expedited proceeding for suspension (based on certain limited grounds, including loss of a professional license and criminal convictions).

OPR has authority to disclose the grounds for disciplinary sanctions in these situations: (1) an ALJ or the Secretary’s delegate on appeal has issued a decision on or after September 26, 2007, which was the effective date of amendments to the regulations that permit making such decisions publicly available; (2) the individual has settled a disciplinary case by signing OPR’s “consent to sanction” form, which requires consenting individuals to admit to one or more violations of the regulations and to consent to the disclosure of the individual’s own return information related to the admitted violations (for example, failure to file Federal income tax returns); or (3) OPR has issued a decision in an expedited proceeding for suspension.

Announcements of disciplinary sanctions appear in the Internal Revenue Bulletin at the earliest practicable date. The sanctions announced below are alphabetized first by the names of states and second by the last names of individuals. Unless otherwise indicated, section numbers (e.g., § 10.51) refer to the regulations.

City and State Name Professional Designation Disciplinary Sanction Effective Date(s)
California        
Garden Grove Francis, Kevin Enrolled Agent Suspended by decision on appeal for violation of § 10.20 (failure to promptly submit information requested by IRS), § 10.22 (failure to exercise due diligence in connection with client’s corporate tax return), § 10.23 (failure to promptly dispose of matters pending before IRS), and § 10.51 (giving false information to IRS, attempting to influence official action of IRS by false accusations, and contemptuous conduct consisting of false accusations) February 4, 2008 through August 4, 2009
Sacramento Himmelmann, William E. CPA Suspended by decision in expedited proceeding under § 10.82 (conviction under 31 U.S.C. § 333, misuse of Treasury names and symbols) Indefinite from March 4, 2008
Colorado        
Breckenridge Daniel, III, Royal Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from January 25, 2008
Florida        
Seminole Bedford, Robert N. Enrolled Agent Suspended by default decision in expedited proceeding under § 10.82 (conviction under 18 U.S.C. § 371, conspiracy to defraud United States) Indefinite from February 21, 2008
Malabar Lagano, Albert S. Attorney Suspended by decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from March 6, 2008
Davie Luyendyk, Charles W. Attorney Suspended by default decision in expedited proceeding under § 10.82 (revocation of attorney license in Michigan) Indefinite from January 28, 2008
Key West McCartney, R. Allen Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license in Kentucky) Indefinite from March 7, 2008
Georgia        
Roswell Bailey, Charles E. CPA Censured by consent January 16, 2008
Macon Gonser, Fred L. CPA Suspended by decision in expedited proceeding under § 10.82 (revocation of CPA license) Indefinite from February 8, 2008
Danielsville Shoemaker, Curtis G. Attorney Suspended by default decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from February 18, 2008
Atlanta Turner, Terrill A. Attorney Suspended by consent in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from January 29, 2008
Illinois        
Chicago Della Rose, Stephen J. Attorney Suspended by default decision in expedited proceeding under § 10.82 (conviction under 18 U.S.C. § 1341, mail fraud) Indefinite from January 7, 2008
  Marcus, Alan R. Attorney Disbarred by default decision for violation of § 10.51 (failure to file Federal income tax returns) Indefinite from November 26, 2007
  Zmigrocki, James J. Attorney Suspended by default decision in expedited proceeding under § 10.82 (stricken from attorney license roll) Indefinite from February 1, 2008
Tinley Park Dominick, Warren J. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from January 7, 2008
Springfield Giganti, Francis J. Attorney Suspended by default decision in expedited proceeding under § 10.82 (stricken from attorney license roll) Indefinite from January 18, 2008
Northbrook Vietinghoff, Kurt CPA Censured by consent October 16, 2007
Kansas        
Leawood Schlotzhauer, David E. CPA Suspended by decision in expedited proceeding under § 10.82 (conviction under 18 U.S.C. § 2314, interstate transportation of stolen property) Indefinite from February 20, 2008
Bonner Springs Vendetti, Murray K. CPA Suspended by default decision in expedited proceeding under § 10.82 (suspension and later surrender of CPA license) Indefinite from January 7, 2008
Kentucky        
  McCartney, R. Allen, See Florida      
Louisiana        
Shreveport Jones, Jr., Hersy Attorney Suspended by default decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from February 5, 2008
Baton Rouge Peters, Stephen K. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from January 4, 2008
Bossier City Spradling, II, James W. Attorney Suspended by default decision in expedited proceeding under § 10.82 (attorney disbarment in Massachusetts) Indefinite from January 14, 2008
Maryland        
Timonium Brandes, Frederic M. Attorney Suspended by default decision in expedited proceeding under § 10.82 (attorney disbarment in New York) Indefinite from January 3, 2008
Freeland Quillen, Jr., James P. Attorney Suspended by default decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from January 14, 2008
Laytonsville Schneider, Fritz H. Attorney Suspended by default decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from January 14, 2008
Blue Springs Steelman, Sr., Thomas W. CPA Suspended by default decision in expedited proceeding under § 10.82 (revocation of CPA license in Missouri) Indefinite from January 14, 2008
Massachusetts        
Pittsfield Alexander, Kathleen Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from January 14, 2008
Norwell Hilson, Robert P. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from January 14, 2008
Wellesley Kleinfeld, Burton H. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from January 14, 2008
  Nadolny, John R., See New Hampshire      
Dorchester Ragan, Kathryn S. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from January 14, 2008
  Sprading, II, James W., See Louisiana      
Michigan        
  Luyendyk, Charles W., See Florida      
Minnesota        
Maple Grove Holker, Kenneth M. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from January 4, 2008
  Roxbury, Linda S. CPA Suspended by default decision in expedited proceeding under § 10.82 (revocation of CPA license) Indefinite from January 3, 2008
Eden Prairie Nelson, Dewey M. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from January 14, 2008
  Sundby, Elizabeth J., See North Dakota      
Missouri        
Eureka Fingal-Griffin, Christi S. Attorney Suspended by decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from February 8, 2008
St. Louis LaTourette, III, Brainerd W. Attorney Suspended by default decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from January 4, 2008
  Steelman, Sr., Thomas W., See Maryland      
Aurora Welch, Lance D. CPA Suspended by default decision in expedited proceeding under § 10.82 (revocation of CPA license) Indefinite from January 14, 2008
Nevada        
Las Vegas Jones, Robert A. Attorney Suspended by decision on appeal for violation of § 10.22 (failure to exercise due diligence in preparing, approving, and filing documents), § 10.30 (public communication containing false statements and claim), and § 10.51 (giving false or misleading information to IRS and aiding and abetting others to practice before IRS during period of ineligibility) February 12, 2008 through February 11, 2010
  Sexton, Jr., James C. Attorney Suspended by default decision in expedited proceeding under § 10.82 (conviction under 18 U.S.C. § 1341, mail fraud, aiding and abetting, causing an act to be done; 18 U.S.C. § 1956(h), conspiracy to money launder) Indefinite from January 28, 2008
New Hampshire        
Rye Nadolny, John R. Attorney Suspended by default decision in expedited proceeding under § 10.82 (conviction under 18 U.S.C. § 1001(a)(1), false statement; attorney disbarment in Massachusetts) Indefinite from March 7, 2008
New Jersey        
Edison Bothe, Robert W. CPA Suspended by decision in expedited proceeding under § 10.82 (conviction under 26 U.S.C. § 7203, failure to make an income tax return to IRS) Indefinite from January 14, 2008
  Katz, Alex, See Pennsylvania      
Cherry Hill Zander, Ben Attorney Suspended by default decision in expedited proceeding under § 10.82 (conviction under 18 U.S.C. § 3, accessory after the fact to mail fraud) Indefinite from January 14, 2008
New Mexico        
Albuquerque Chan, Sean, a/k/a Hinman, Sean CPA Suspended by default decision in expedited proceeding under § 10.82 (conviction under 26 U.S.C. § 7206(2), fraud and false statements) Indefinite from March 7, 2008
Gallup Griego, Robert P. CPA Suspended by default decision in expedited proceeding under § 10.82 (revocation of CPA license) Indefinite from March 7, 2008
New York        
Franklin Square Blum, Harold CPA Disbarred by decision on appeal for violation of § 10.51 (failure to file Federal income tax returns) Indefinite from February 21, 2008
  Brandes, Frederic M., See Maryland      
New York Chasky, Barry L. Attorney Suspended by default decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from January 14, 2008
Valley College Gould, Warren M. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from January 14, 2008
  Joyce, William M., See Oregon      
Long Beach Kuschner, Herbert M. Attorney Suspended by decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from January 3, 2008
Ossining Medina, Luis A. Attorney Suspended by decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from February 20, 2008
Bronxville Tavon, Robert Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from January 4, 2008
North Carolina        
Leicester King, Thomas P. CPA Suspended by default decision in expedited proceeding under § 10.82 (revocation of CPA license) Indefinite from February 5, 2008
Winston Salem Myers, William C. Attorney Suspended by default decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from March 7, 2008
North Dakota        
Fargo Sundby, Elizabeth J. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license in Minnesota) Indefinite from January 3, 2008
Ohio        
Sunbury Dye, Lewis W. Attorney Suspended by decision in expedited proceeding under § 10.82 (conviction under 31 U.S.C. § 5331, failure to file Form 8300 with the IRS) Indefinite from January 28, 2008
Oregon        
Portland Joyce, William M. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license in New York) Indefinite from January 14, 2008
Pennsylvania        
Moscow Cobb, Paul J. CPA Suspended by decision in expedited proceeding under § 10.82 (revocation of CPA license) Indefinite from January 25, 2008
Plumsteadville Hauke, Thomas CPA Suspended by decision in expedited proceeding under § 10.82 (conviction under 18 U.S.C. § 371, conspiracy to commit securities fraud) Indefinite from January 25, 2008
Aliquippa Havey, John A. Attorney Suspended by default decision in expedited proceeding under § 10.82 (conviction under 26 U.S.C. § 7201, income tax evasion) Indefinite from January 24, 2008
Tyrone Hiller, Deborah D. CPA Suspended by default decision in expedited proceeding under § 10.82 (revocation of CPA license) Indefinite from March 4, 2008
Rydal Katz, Alex Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license in New Jersey) Indefinite from January 14, 2008
Pittsburgh Musher, Robin Grassel Attorney Suspended by decision in expedited proceeding under § 10.82 (conviction under 18 U.S.C. § 153(a), embezzlement from bankruptcy estate) Indefinite from January 28, 2008
South Carolina        
Pendleton Cureton, Steven R. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from March 4, 2008
Pauline Hanna, Sr., David H. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from March 4, 2008
Mt. Pleasant Prendergast, Sean J. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from March 4, 2008
Hartville Wilmeth, Harriet E. Attorney Suspended by default decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from March 4, 2008
Tennessee        
Monteagle Settles, Thomas E. CPA Disbarred by decision on appeal for violation of § 10.22 (failure to exercise due diligence in preparing, or assisting in preparing, approving, and filing his Federal income tax returns; in preparing, or assisting in preparing, tax returns relating to family living trusts and family limited partnerships; in determining correctness of representations to Treasury or clients), § 10.34 (advising clients on frivolous tax strategy), and § 10.51 (providing false or misleading information on his Federal income tax returns, failure to timely file Federal income tax return, and giving a false opinion) Indefinite from February 7, 2008
Texas        
Midland Schulte, Jr., Eddie CPA Censured by consent February 13, 2008
Vermont        
Rutland Barsanti, Gregory U. CPA Suspended by default decision in expedited proceeding under § 10.82 (revocation of CPA license) Indefinite from March 4, 2008
  Campbell, Elizabeth C. CPA Suspended by default decision in expedited proceeding under § 10.82 (revocation of CPA license) Indefinite from March 7, 2008
Virgin Islands        
St. Thomas Brusch, Stephen A. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from March 7, 2008
Virginia        
Woodbridge Steinberg, Andrew M. Attorney Suspended by default decision in expedited proceeding under § 10.82 (revocation of attorney license) Indefinite from January 24, 2008
Wisconsin        
Waukesha Acker, Amy S. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from March 4, 2008
Madison Chvala, Charles J. Attorney Suspended by default decision in expedited proceeding under § 10.82 (conviction under Wisconsin Statutes § 946.12(3), misconduct in public office and § 11.26(2)(b), limitations on contributions) Indefinite from January 24, 2008
Iron River Schuh, Arthur L. Attorney Suspended by default decision in expedited proceeding under § 10.82 (conviction under 21 U.S.C. §§ 841(a)(1) and (b)(1)(A) and 846, conspiracy to distribute a controlled substance; and 18 U.S.C. § 924(c)(1)(A)(I), possession of a firearm in furtherance of a drug trafficking crime) Indefinite from February 5, 2008
Mazomanie Winch, James T. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from January 24, 2008

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