At a hearing of the Disciplinary Tribunal of the Institute of Chartered Accountants of New Zealand held on the 8th and 9th days of October 2003, at which the member was present and represented by counsel, the tribunal recorded that Terry Gerard Spekreijse, chartered accountant of Christchurch, pleaded not guilty to the following charges and did not admit 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, Terry Gerard Spekreijse has been guilty of:
? misconduct in a professional capacity; and/or
? conduct unbecoming an accountant; and/or
? breach of the institute's code of ethics, specifically Fundamental Principles 1 and 5 and Ethical Provisions 13 and 43.
IN THAT
? In the course of his practice as a chartered accountant, Terry Gerard Spekreijse:
(a) retained accounting fees belonging to his firm to the value of $108,720.00;
(b) falsified invoices on his firm's letterhead directing his firm's clients to pay him directly for his own personal gain;
(c) transferred client funds from his firm's trust account without authority to do so, including payments to an overseas bank account, on account of another person of $77,694.00;
(d) made six payments via his firm's trust account from a client ledger either to himself via cheques or to another person;
(e) retained for his own personal use fees for the audit of a client for the years 2000-2002 when the audit report was signed on behalf of his firm;
(f) subsequently substituted the audit reports referred to above with replacements signed in his name, when his firm was the appointed auditor; and
(g) misled his firm's clients and misused client funds.
The tribunal found all the particulars to be proven, subject to the following amendments and exceptions:
? With regard to particular (a), the tribunal found that the member retained fees to the value of approximately $128,000.00.
? With regard to particular (c), the tribunal found that the member did not have the authority of his partners, but did not find it proven that he did not have client authority.
? With regard to particular (e), the tribunal found the particular proven in relation to the years 2000-2001 but not proven in relation to the year 2002.
? With regard to particular (g), the tribunal found that the member misled his firm's clients, but did not find that he misused client funds.
Having regard to the proven particulars, the tribunal found Terry Gerard Spekreijse guilty as charged, with the exception of misconduct in a professional capacity and breach of Ethical Provision 43.
Orders of the Tribunal
Following consideration of evidence and submissions, the tribunal made the following orders:
(a) Pursuant to Rule 21.31 (b) of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that Terry Gerard Spekreijse be suspended from the institute for a period of two years.
(b) Pursuant to Rule 21.31 (d) of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that Terry Gerard Spekreijse's certificate of public practice be suspended for a period of two years.
(c) Pursuant to Rule 21.31 (g) of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that Terry Gerard Spekreijse engage an advisor or tutor at his own expense.
(d) Pursuant to Rule 21.33 of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that Terry Gerard Spekreijse pay to the institute the sum of $30,000.00 (plus 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 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 Press, the New Zealand Gazette and the Chartered Accountants Journal of New Zealand with mention of the member's name and locality.
In reaching its decision, the tribunal considered that the penalties must fit with its findings of fact and determination of guilt, however the tribunal noted it was mindful of the professional environment of the member's former firm and the contribution this had made to his offending.
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 him 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 14th day of October 2003.
A. N. FRANKHAM, Tribunal Chairman.