Leo Sheppet CPA

Member’s name: Mr Leo Sheppet CPA
Date of Hearing: 23 June 2016
Division: Victoria
Tribunal: Appeals Tribunal

On 16 February 2016, the Disciplinary Tribunal found that Mr Leo Sheppet breached:

• Article 39(a)(ii)A of the Constitution on three occasions, in that he breached section 8.1 of APES 310 – ‘Dealing with Client Monies’ in that he failed to ensure compliance for the years ended 31 March 2012, 2013 and 2014
• Article 39(a)(ii)I of the Constitution in that he failed to provide a sufficient and satisfactory written explanation to Professional Conduct in response to Complaints made about him.

Mr Sheppet attended the Disciplinary Tribunal and admitted the four Complaints.

The Disciplinary Tribunal took into account that Mr Sheppet failed to have his trust account audited for seven years and once audited, each was qualified to a significant degree.

Penalty

The Disciplinary Tribunal found the Complaints sustained and imposed the penalty of forfeiture of Membership for five years and that prior to any application for readmission, Mr Sheppet must first:

• successfully complete a complaint Quality Review at his own cost as a non-Member
• provide to the satisfaction of the General Manager Professional Conduct (GMPC) a trust account audit for the prior year to 31 March, or a closing trust account audit, which must be unqualified. 

Appeal

On 23 June 2016 the Appeals Tribunal set aside the penalty imposed by the Disciplinary Tribunal and imposed the following penalties and costs:

• a severe reprimand on Complaints one to three
• a severe reprimand and a fine of $1000 for failing to respond to correspondence from Professional Conduct, a failure to pay that fine within 60 days of invoice to result in forfeiture of Membership
• that Mr Sheppet successfully complete a compliant Follow up Review by 21 January 2017, a failure to so complete to result in forfeiture of Membership
• that Mr Sheppet provide to the GMPC, by 30 June of each year, an unqualified audit report while his trust account remains open.

Should Mr Sheppet’s membership be forfeited for any of the above reasons, it is a condition of readmission that he first successfully complete a compliant Quality Review as a non-Member at his own cost.

Mr Sheppet was also ordered to pay CPA Australia’s costs of the Disciplinary Tribunal Hearing of $630.73 and $571.55 for the Appeals Hearing, a failure to pay by the due date to result in forfeiture of Membership.