Accounting for Past Mistakes

By Olin Ericksen
Staff Writer

September 27 -- School Board candidate Barry A. Snell -- an accountant who has made improving the district's "fiscal stability" a key campaign issue -- is on probation with the California State Board of Accountancy for failing to keep his license up to date and bouncing a check for the subsequent fine, the Lookout News has learned.

Snell -- who has received numerous endorsements, including those of Santa Monicans for Renters’ Rights and the Chamber of Commerce -- was issued an initial citation in June 2000 for practicing as a Certified Public Accountant (CPA) with an expired license for not keeping up with his continuing education requirements, according to State officials and Snell.

As a result, he was issued a $2,500 fine in December of 2001 and ordered to suspend his practice until his license was renewed.

Snell also was instructed to complete 80 hours of continuing education, notify the board in writing of any change of address and pay $3,500 in hearing costs, according to state records.

Snell cut a check for $2,500, which then bounced because of insufficient funds in the account, leading to a third, and more serious, encounter with the board of accountancy, according to State officials and Snell.

“While on probation, Mr. Snell violated the terms of his probation in that he failed to obey all federal, state, and local laws, including those rules relating to the practice of public accountancy in California,” states the report on the state board of accountancy’s website. “He also failed to maintain an active license and failed to make scheduled cost reimbursement payments.”

As part of a subsequent stipulated settlement, Snell picked up a second term of probation, beginning in December 2004 and ending December 2007. As part of that agreement, Snell agreed to the states’ version of what happened, including “knowingly and willfully” writing a bad check and other violations, according to State records.

Snell – who has practiced as an accountant for 25 years -- disputes the fact that he knew he was writing a bad check and said the entire issue stemmed from a simple mistake in failing to keep up with continuing education that grew into a larger issue.

“It was just an error, and I’m disappointed it happened, but it was a simple mistake,” he said. “Yes, as a CPA I’m responsible for keeping up with all my requirements to keep my license active, but it was an oversight.”

The check was issued when he was moving offices and it came out of the wrong account, Snell said.

“I did not knowingly write a bad check,” he said. “I disagree and dispute the statement of facts,” he told the Lookout News Wednesday.

State officials did not dispute Snells’ accounting of events, but said he signed a statement that acknowledged the state’s statement of facts, including that he failed to complete any of the other conditions assigned to him as part of his first terms of probation in 2001.

In addition to the bounced check, Snell failed to “cease and desist his practice as a CPA until his license was renewed, to provide the CBA written notice of his change of address and to provide evidence of completing the 80-hour renewal requirement,” according to State officials.

The State contends Snell “did not comply with any of these orders contained in the citation.”

Snell said he was unaware he had signed a statement acknowledging the State’s contentions.

“This is the first time that I was aware that I signed something to that effect,” he said. “I just wanted to get it behind me, and it was purely an administrative violation.”

While the offense is not an “egregious” violation, the State does not take Snell’s infractions lightly, State officials said.

“It’s not like he’s stolen money or anything like that,” said Greg Newington, chief of enforcement for the division of the Certified Board of Accountancy for California.

“However we file accusations in the neighborhood of 25 to 40 every year…so he made that subset, which is significant considering we have about 70,000 CPA’s we monitor in California.”

After an initial inquiry, if the State finds something wrong, it will issue a “accusation” and move forward with a hearing to investigate the circumstances, according to State guidelines.

Newington further characterized such “accusations” as a “fairly uncommon occurrence.”

With a year left of probation, his fines paid, hid license up to date and no subsequent infractions, Snell has been practicing for the past two years without any intervention by the State.

Snell said he had not made his probation public after choosing to run for four open seats on the School Board, because “he was not asked about it.”

“It wasn’t anything I was trying to hide,” he said. “All of this was handled, I thought…. It was an honest mistake.”

“I didn’t really think that this was going to be a problem, and it is basically public record,” he added

The father of three children in the local school system and a leader in several African-American rights’ groups, including the NAACP, Snell said he believes the event should not impact his run for School Board and does not reflect on his competency in handling fiscal issues for the district.

“This should not matter, because this has nothing to do with any of my work as a CPA in managing money,” he said.

On Wednesday, Snell sent out an email to his SMRR running mates after learning the violations would be made public.

“I hope this infraction does not have any affect (sic) on you supporting me or on your own campaign,” Snell wrote.

SMRR Co chair Dennis Zane said the powerful tenants’ group would stand behind Snell after endorsing him at the group’s August 6 convention. (see story)

“He might not handle his personal accounts well,” said former mayor Zane, but “it does not go to the issue of his trustworthiness. We all get busy and miss deadlines.”

SMRR backed Snell, Zane said, because he is a role model committed to children.

As for Snell, he said he is happy to have the issue out in the open.

“Actually, I’m glad that someone is asking me the question, and now everyone knows,” he said.