At a hearing of the Disciplinary Tribunal of the Institute of Chartered Accountants of New Zealand held on the 23rd day of July 2003, the tribunal recorded that John James Penny, of Auckland, pleaded guilty to the following charges and admitted the following particulars:
THAT in terms of the Institute of Chartered Accountants of New Zealand Act 1996 and the Rules made thereunder, and in particular Rule 21.30:
? the member has been adjudicated bankrupt;
? the member has been guilty of conduct unbecoming an accountant;
? the member has breached the Code of Ethics of the Institute (FP5, EP8).
IN THAT:
? on or about the 12th day of June 2002, the member was adjudicated bankrupt;
? in accordance with a judgement of the District Court dated the 15th day of January 2003 and as a matter of fact, the member was involved as a chartered accountant, and as a consultant and associate in an organisation. As a result of an equity interest advertised in the New Zealand Herald and by the member's actions and the member's employee's actions, members of the public have obtained judgement against the member for the loss of their interest of $61,917.38 resultant upon a breach by the member of the Securities Act which in turn rendered the sale invalid and of no effect.
The tribunal found the member guilty as charged and the particulars proven.
Orders of the Tribunal:
(a) Pursuant to Rule 21.31 (a) of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that John James Penny be removed from the institute's Register.
(b) Pursuant to Rule 21.33 of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that John James Penny pay to the institute the sum of $5,360.00 (inclusive of G.S.T.) in respect of the costs and expenses of the hearing before the disciplinary tribunal and the investigation by the professional conduct committee.
In reaching its decision, the tribunal considered that, given the judgement against the member involving serious breaches of the Securities Act, it would not be in the interests of the public nor the profession for the member to remain as a member of the institute.
In accordance with Rule 21.35 of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal directed that the decision be published in the
New Zealand Herald, the New Zealand Gazette and
the Chartered Accountants Journal of New Zealand with mention of the member's name and locality.
Right of Appeal:
Pursuant to Rule 21.41 of the Rules of the Institute of Chartered Accountants of New Zealand which were in force at the time of the original notice of complaint, the member may, not later than 14 days after the notification of this tribunal to the member of the exercise of its powers, appeal in writing to the appeals council of the Institute against the decision.
No decision other than the direction as to publicity shall take effect while the member remains entitled to appeal or while any such appeal by the member awaits determination by the appeals council.
Dated this 25th day of July 2003.
A. N. FRANKHAM, Tribunal Chairman.