Welland accountant fined $25,000 by CPA Ontario

Eight separate allegations against Jeffery Spicer laid out in report

A Welland accountant manipulated cheques from eight separate clients and misappropriated funds totalling more than $335,000, the Professional Conduct Committee of CPA (Chartered Professional Accountants) Ontario says in a document finding professional misconduct against the man.

The 17-page report, found on CPA Ontario’s website, lays out eight allegations against Jeffery Spicer from 2015 to 2019 including borrowing money from a client and failing to conduct himself in a manner “which will maintain the good reputation of the profession and its ability to serve the public interest” while engaged in providing tax and accounting services.

Niagara Regional Police Const. Phil Gavin said there was no police investigation into Spicer and no charges laid.

“If members of the public feel that they are a victim of a crime they can contact our dispatch to report it for investigation,” he said in an email.

Spicer held a certified general accountant designation for 44 years, received a chartered professional accountant designation in 2014 and was the sole practitioner at his Welland office at 250 Division St.

In March 2019 the associate director of forensic accounting at Royal Bank of Canada filed a complaint with CPA Ontario regarding Spicer.

“This complaint brought the events that gave rise to the allegations to the attention of the CPA Ontario,” the document said.

Spicer represented himself at a hearing held on Aug. 10, and a written release of the decision was made in September.

An overview of the hearing said Spicer admitted to all of the allegations of professional misconduct, confirmed that he was waiving his right to counsel and that he made the admissions voluntarily

“At the relevant times, and for a number of years beforehand, Spicer maintained two bank accounts at the branch of the RBC in downtown Welland: one was a business account, and the other was his personal account. He had a long-term relationship and familiarity with the staff at that branch,” the report said.

It said the accountant was able to deposit a total of $335,394 from clients, without their authorization, into his accounts in one of three ways: by altering/amending the face of seven cheques totalling $105,298.16 to show himself as the payee; depositing another 12 cheques, totalling $112,673, into his business account even though he was not shown as the payee on the face of the cheque; and depositing nine cheques totalling $117,422 into his business account made payable to him on the understanding by clients — MH Ltd. and K Inc. — that he would immediately forward payments to Canada Revenue Agency as payment for corporate taxes.

“Spicer’s clients were not aware of, and did not authorize, his actions,” the report said.

CPA Ontario’s professional conduct committee and its panel said considering all of the evidence, and Spicer’s admission, it found he had conducted himself in a manner that did not maintain the good reputation of the profession and its ability to serve the public and committed professional misconduct.

Spicer was given a written reprimand, a fine of $25,000 payable within two years, and had his CPA Ontario membership revoked, notice of which had to be made in the Welland Tribune and paid for by himself.

He was also made to pay costs of $14,000 to CPA Ontario.