Blogs | Scam Diego
Accounting Group Disciplines Former City Auditor
By Don Bauder | Posted September 3, 2010, 1:29 p.m.
Last year, the California Board of Accountancy withdrew the license of the former El Cajon-based accounting firm, Calderon Jaham & Osborn. (Sorry to be so late reporting this, but I just learned of it.) The firm had been auditor of the City of San Diego in 2001 and 2002. The Securities and Exchange Commission charged it with making false and misleading statements in connection with City bond offerings that raised $261 million. Also, the accounting firm had said that audits for 2001 and 2002 were in accordance with generally accepted procedures, when they were not, charged the SEC. The Calderon firm also made materially false and misleading statements about the City's pension and healthcare obligations. The firm reached a consent decree with the SEC in late 2007, promising not to break securities laws. In 2003, the firm was bought by Costa Mesa's Caporicci & Larson, which briefly had the City auditing contract. Caporicci, in turn, has been merged into Los Angeles-based Stonefield & Josephson.
At the same time the Calderon firm surrendered its license last year, Thomas J. Saiz (pronounced Size), who headed the firm, was suspended for 30 days and ordered to take 80 hours of continuing education. He then started his own accountancy in La Mesa, but I have not been able to locate him.
Great post Don!
I wonder if this Company had E & O (Errors & Omissions) insurance; if they did then that Company would be financially responsible for their "GOOF UP$...
Just think, getting "caught giving bad info to a entire City and then only getting "Bitch $lapped" with a penalty of "suspended for 30 days and ordered to take 80 hours of continuing education"...
It's no wonder that our Districts, our City, our County, Our State and Our Country are all financially in hot water...
I'm ashamed, that I have not been not more vigilant; how about YOU?!
Maybe we now need Financial Marines to guard our Countries assets!
By Founder 7:06 p.m., Sep 3, 2010 > Report it
I would have to agree that a 30 day suspension as punishment for violating SEC rules appears to be a bit light.
By Burwell 8:03 p.m., Sep 3, 2010 > Report it
Response to post #1: Of course, city officials at the time tried to blame everything on the accounting firm. That didn't wash. But the city officials got cited in documents outlining what happened, and some got indicted, but none really got punished for their role in the pension-related lies that investors were told. Best, Don Bauder
By dbauder 8:46 p.m., Sep 3, 2010 > Report it
Response to post #2: Yes, Saiz went back into the business, so I assume he completed the courses and his suspension. I haven't been able to find him, however. Best, Don Bauder
By dbauder 8:48 p.m., Sep 3, 2010 > Report it
Continuing with #1
"I wonder if this Company had E & O (Errors & Omissions) insurance; if they did then that Company would be financially responsible for their "GOOF UP$..."
Any chance that the City might have a case against Calderon Jaham & Osborn or Saiz's E & O insurer?
By Founder 8:49 a.m., Sep 4, 2010 > Report it
Response to post #5: If so, that's a question that should have been posed eight years ago. Best, Don Bauder
By dbauder 11:45 a.m., Sep 4, 2010 > Report it
who signed off on the order to hire these turkeys ?
any financial connection there?
By MURPHYJUNK 9:54 a.m., Sep 6, 2010 > Report it
Reply #6
If all this happened "eight years ago", why is he "just" getting his license back?
By Founder 10:45 a.m., Sep 6, 2010 > Report it
who signed off on the order to hire these turkeys ?
any financial connection there?
===============
Of course there was a connection related to hiring a tiny little outfit like this-and it was documented in the UT althouhg I do not remember the details of it. A MAJOR accounting firm should have been doing the books (although Arthur Anderson proved big firms can cook the books too).
I am confident 100% of gov emplpoyment/contracting of services, especially at the higher paying/comp levels, are mainly based on politics.
By SurfPuppy619 2:40 p.m., Sep 6, 2010 > Report it
Response to post #7: At the time the firm was chosen, some in local government wanted to keep one of the major accounting firms. But the Calderon firm had given a lot of money to councilmembers, and also it was an Hispanic-owned firm. Of course, I don't know that one of the major firms would have been any better. Look what they have hidden for top clients such as Enron. Best, Don Bauder
By dbauder 8:03 p.m., Sep 6, 2010 > Report it
Response to post #8: I don't know when he got his license back. It may have been as soon as he completed the required education courses. Best, Don Bauder
By dbauder 8:05 p.m., Sep 6, 2010 > Report it
Response to post #9: It wasn't just the former Arthur Andersen cooking the books for big clients. All of the majors (now down to a handful) have dirty hands for their misdeeds. Best, Don Bauder
By dbauder 8:07 p.m., Sep 6, 2010 > Report it
Calderon was also the auditing firm contracted by the San Diego Housing Commission which, at the time, was funded by federal, state and CDBG programs. There's another can of worms that's yet to be opened.
By reddragonfly 8:52 p.m., Sep 8, 2010 > Report it
Response to post #13: I vaguely remember something about that from several years ago. You're right: the can should be opened, even belatedly. Best, Don Bauder
By dbauder 7:57 a.m., Sep 9, 2010 > Report it