Christopher A Scott

Member’s name: Mr Christopher A Scott
Date of Hearing: 1 September 2016
Division: Queensland
Tribunal: Disciplinary Tribunal

On 1 September 2016 the Disciplinary Tribunal found Mr Christopher A Scott breached:

• Article 39(a)(ii)E of the Constitution in that on 30 October 2015 he declared himself bankrupt by way of Debtors Petition
• Article 39(a)(ii)B.2) of the Constitution in that on three occasions he was guilty of conduct derogatory to or not in the best interests of CPA Australia or its Members in respect of borrowing monies from a client where he had a conflict of interest, as detailed below
• Article 39(a)(ii)A of the Constitution in that he breached By-Law 5.2(b)(ii) in failing to respond to correspondence from Professional Conduct in relation to complaints made about him.

Mr Scott had borrowed $1 million from a client in 2007 and a further $650,000 from that client in 2008, representing to the client that the monies would be invested and repaid with interest on 31 August 2009. The monies were, in fact, transferred into a company in which Mr Scott was the sole director. The monies were lost and liquidators were appointed to Mr Scott’s company in May 2014 with no dividend expected to be available to creditors. There was little or no proof that those monies were ever invested by Mr Scott on behalf of his client.

The unpaid principal and interest owed to the client at the time of the company’s liquidation exceeded $3.38 million.

Mr Scott did not attend the Disciplinary Tribunal Hearing.

Penalty and costs

The Disciplinary Tribunal found the Complaints sustained and imposed the following penalties:

• in relation to his bankruptcy, forfeiture of Membership and not eligible for readmission until the expiration of his bankruptcy
• in relation to his failure to respond to correspondence from Professional Conduct:
  • a severe reprimand and a fine of $10,000
• in relation to borrowing monies from his client in the manner that he did, forfeiture of Membership and not eligible for readmission for twenty (20) years
• should Mr Scott reapply for Membership at the expiration of the period of forfeiture, he will lose his FCPA designation and must first:
  • complete the CPA Program or its equivalent as a non Member
  • have paid all outstanding Membership subscriptions, fines and costs.

Mr Scott was ordered to pay CPA Australia’s costs of $1203.69.