FILED Department of Business arid Professional Regulation Deputy Agency Clerk STATE OF FLORIDA ck Og ‘vette Lawson-Proctor DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULAT] pate 49/20/2014 File # DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, Petitioner, Vv. Case No. 2013-044346 CARL W. ELLSPERMANN, Respondent, ADMINISTRATIVE COMPLAINT Petitioner, the Department Of Business and Professional Regulation, files this Administrative Complaint before the Board of Accountancy (Board), against Respondent, CARL W. ELLSPERMANN. 1. Petitioner is the state agency charged with regulating the practice of public accountancy, pursuant to Section 20.165, Florida Statutes, and Chapters 455 and 473, Florida Statutes. 2. At all times material to this Complaint, the Respondent was licensed as a Certified Public Accountant in the State of Florida, having first been issued license number AC 04090 on May 1, 1992. 3. The Respondent's address of record is 1111 N.E. 25% Avenue, Suite 202, Ocala, Florida 34470. MATERIAL FACTS 4, From a period beginning in or about the year 1999 and continuing through or about the year 2012, the Respondent was hired by the Bie Family Irrevocable Trust (“the Trust”) to prepare and file financial information concerning the Trust. 5. For the tax years of 2004, 2010, and 2011, the Respondent erroneously reported on Internal Revenue Service's Schedule K-1 tax forms that Rita Yost (“Ms. Yost”), a beneficiary of the Trust, received distributions from the Trust when in fact Ms. Yost never received any income from the Trust during the aforementioned years. 6. On or about December 11, 2012, the Respondent sent a letter to the trustee stating, “I have concluded that I was in error when I allocated income distributions to [Ms. Yost]. I am enclosing the amended returns for 2011, and 2010.” 7. As a result of the Respondent’s error, Ms. Yost incurred undue federal income tax liability in the amount of $1,992.55. 8. On or about May 3, 2013, the Internal Revenue Service confirmed that the Respondent never reported the amended Schedule K-1 tax forms for the tax years of 2010 and 2011 to the Internal Revenue Service. 9. To date, the Respondent has neither reported the amended Schedule K-1 tax forms to the Internal Revenue Service, nor has he paid any fees to Ms. Yost that she incurred as a result of his error. COUNT ONE 10. The Petitioner realleges and incorporates by reference the allegations set forth in paragraphs one (1) through nine (9) as though fully set forth herein. 11. Section 473.323(1)(g), Florida Statutes (2013), provides that “[C]lommitting an act of fraud or deceit, or of negligence, incompetency, or misconduct, in the practice of public accounting” constitutes grounds for which disciplinary actions may be taken. 12. Based on the facts set forth above, the Respondent violated Section 473.323(1)(g), Florida Statutes (2013), by erroneously preparing and filing Schedule K-1 tax forms with the Internal Revenue Service for tax years 2004, 2010, and 2011, which reflected distributions made from the Trust to Ms. Yost when in fact those distributions were never made, thereby causing Ms. Yost to incur undue tax liability. COUNT TWO 13. The Petitioner realleges and incorporates by reference the allegations set forth in paragraphs one (1) through nine (9) as though fully set forth herein. 14. Section 473.323(1) (h), Florida Statutes (2013), states “violation of any rule adopted pursuant to this chapter or chapter 455” constitutes grounds for which disciplinary actions may be taken. 15. Rule 61H1-22.001(2), Florida Administrative Code, states that, “a certified public accountant shall comply with the following general standards and must justify any departures therefrom: (2) Due professional care. A certified public accountant shall exercise due professional care in the performance of an engagement”. 16. Based on the facts set forth above, the Respondent violated Section 473.323(1) (h), Florida Statutes (2013), through a violation of Rule 61H1-22.001(2), Florida Administrative Code, by not exercising due professional care in the performance of an engagement by erroneously preparing and filing Schedule K-1 tax forms with the Internal Revenue Service for tax years 2004, 2010, and 2011, which reflected distributions made from the Trust to Ms. Yost when in fact those distributions were never made, thereby causing Ms. Yost to incur undue tax liability. WHEREFORE, Petitioner respectfully requests that the Board of Accountancy enter an Order imposing one or more of the following penalties: permanent revocation or suspension of the Respondent’s license, restriction of practice, imposition of an administrative fine, issuance of a reprimand, placement of Respondent on probation, assessment of costs, corrective action and/or any other relief that the Board deems appropriate. Signed this 14° day of October, 2014. KEN LAWSON, Secretary Department of Business and Professional Regulation Cristin Erica White Cristin Erica White Chief Attorney Division of Certified Public Accounting Florida Bar No. 0641340 Department of Business and Professional Regulation Office of the General Counsel 1940 N. Monroe Street, Ste. 42 Tallahassee, FL 32399-2202 (850) 488-0062 Telephone (850) 414-6749 Facsimile PC Found: October 9, 2014 PC Found By: S. Vogel, D. Dennis, F. Puissegur CEW/rdv Case No.: 2013-044346 NOTICE OF RIGHTS Please be advised that mediation under section 120.573, Florida Statutes, is not available for administrative disputes involving this type of agency action. Please be advised that Respondent has the right to request a hearing to be conducted in accordance with sections 120.569 and 120.57, Florida Statutes, to be represented by counsel or other qualified representative, to present evidence and argument, to call and cross-examine witnesses and to have subpoenas and subpoenas duces tecum issued on his or her behalf if a hearing is requested. Any request for an administrative proceeding to challenge or contest the charges contained in the administrative complaint must conform to Rule 28-106.2015, Florida Administrative Code. Rule 28-106.111, Florida Administrative Code, provides in part that if Respondent fails to request a hearing within 21 days of receipt of an agency pleading, Respondent waives the right to request a hearing on the facts alleged. NOTICE REGARDING ASSESSMENT OF COSTS Respondent is placed on notice that Petitioner has incurred costs related to the investigation and prosecution of this matter. Pursuant to section 455.227(3) (a), Florida Statutes, the Board, or the Department when there is no Board, may assess costs related to the investigation and prosecution of the case excluding costs associated with an attorney's time, against Respondent in addition to any other discipline imposed.

Docket for Case No: 15-003291PL