Civil Division: Consumer Protection and Advocacy Section (1992-1996)

Primary Clients:
Arizona State Banking Department
Arizona Insurance Department
Arizona Real Estate Department in administrative enforcement actions

• Provided legal advice on all aspects of the operations and functions of the Arizona State Banking Department.
  Appeared before Arizona and California state courts, Arizona Court of Appeals and the Ninth Circuit Court of Appeals.
  Argued cases resulting in published opinions involving constitutional and administrative law issues:
  • Morton Roberts v. State, 179 Ariz. 613, 880 P.2d 1159 (App. 1994)
    Milliken & Michaels of Arizona v. Houseworth, 942 F.Supp. 454 (1996)

Most Significant Case:
In the Matter of the Collection Agency Licenses of Milliken & Michaels of Arizona, Inc., et al

Facts:
Largest collection agency in the state was run by two convicted felons who did not disclose true ownership and criminal record. The company was abusing the debtors it was calling and misleading its customers.

Result:
Collection agency agreed to cease collection practices in Arizona
Paid fees and penalties totaling more than $500,000
Published opinion favorable to the state at the United States District Court for the State of Arizona: Milliken & Michaels of Arizona v. Houseworth, 942 F.Supp. 454 (1996)

Newspaper Articles:
                              Inside Tucson business 9/2/96 - “Collection agency must pay fees, cease operations in state”
 

Civil Division: Licensing and Enforcement Section (October 1996-2004)

Client:
Arizona State Board of Accountancy

Significant Cases:

1999: Case No. 96.007: In the Matter of the Certified Public Accountant Certificate issued to Coopers and Lybrand

Facts:
Investigation and action regarding the allegations that Coopers and Lybrand rigged its bid to get the ”Project SLIM” state contract and the auditing and accounting services Coopers and Lybrand provided to Fife Symington and his real estate development companies Camelback Esplanade.

Result:
Accounting Firm agreed to settlement through a Consent Order restricting the accounting activities of two partners. The firm paid a total of $1.1 million to the state’s general fund and to the accountancy board to cover investigation costs.

Newspaper Articles:
               Arizona Republic 6/16/99 - “Coopers to pay state $1.1 million, ends probe involving Symington
Tribune 6/16/99 - “Accounting firm agrees to pay state in Symington case"
         Daily Star 6/16/99 - “Symington deal costs company another million”
Arizona Republic 6/25/99 - “Accounting firm violated standards, reports conclude Case: In the “Symington deal costs company another million”

2000: Case No 95.021-ACY: In the matter of Certified Public Accounting Office Registration No. 2111-B issued to Deloitte & Touche LLP, et al

Facts:
Investigation into the failed audits of Farm and Home Life Insurance Company by Deloitte and Touche and its predecessor, Touche Ross.

Result:
Accounting Firm agreed to settlement through a Consent Order and separate Consent Orders were entered on individual CPAs. The firm paid a total of $800,000 to the state’s general fund and to the accountancy board to cover investigation costs.

2001: Case No. 95.235-ACY: In the Matter of the Certified Public Accounting Firm of Registration No. 964-B Issued to Arthur Andersen LLP

Facts:
Investigation into the failed audits of UDC Homes by Arthur Andersen LLP

Result:
Accounting Firm agreed to settlement through a Consent Order and separate Letters of concern were entered on individual CPAs. All members of the firm were required to take additional education courses. The firm paid a total of $755,000 to the state’s general fund and to the accountancy board to cover investigation costs.

Newspaper Article:
The Arizona Republic, 1/24/01 - “A. Anderson pays $755k in settlement”

2002: Case No. 00A-98230-ACY: In the Matter of the Certified Public Accounting Firm of Registration No. 964-B Issued to Arthur Andersen LLP

Facts:
Investigation into the failed audits of The Baptist Foundation of Arizona by Arthur Andersen, LLP.

Result:
Accounting Firm agreed to settlement through a Consent Order and separate Consent Orders were entered on individual CPAs. The firm surrendered its registration to do business in Arizona. The firm paid a total of $217 million dollars in restitution, with the exception that $640,000 would be paid to the accountancy board to cover investigation costs.

Newspaper Articles:
The Arizona Republic, 12/5/00 - “State sues BFA auditor for $600 million”
The Arizona Republic, 12/13/00 - “BFA auditor failed to note IRA abuses, state alleges”