DCCA Disciplinary Actions (through November 2016)

Posted on Dec 13, 2016 in Latest News

HONOLULU – The state Department of Commerce and Consumer Affairs (DCCA) and the state Boards and Commissions released a summary of disciplinary actions through the month of October 2016 taken on individuals and entities with professional and vocational licenses in Hawaii.  These disciplinary actions include dispositions based upon either the results of contested case hearings or settlement agreements submitted by the parties.  Respondents enter into settlement agreements as a compromise of claims and to conserve on the expenses of proceeding with an administrative hearing.

The DCCA and the Boards and Commissions are responsible for ensuring those with professional and vocational licenses are performing up to the standards prescribed by state law.

CONTRACTORS LICENSE BOARD

Respondent:        James Hunt Construction Co., Inc., and Matthew M. Barry (Maui)

Case Number:      CLB 2016-277-L                                                                                    

Sanction:              $20,000 fine                                                                                              

Effective Date:     11-18-16

In October 2015 and June 2016, Respondents allegedly entered into contracts for construction projects but failed to have the RME in residence in the State during the time the license of the contracting entity was in effect or during the period the projects were under construction. James Hunt Construction Co., Inc., was alleged to have violated HAR §16-77-71(a)(4) (RME not in residence) and Matthew M. Barry was alleged to have violated HAR §16-77-71(5)(RME responsible for violation) and HAR §16-77-71(a)(4) (RME not in residence).  (Board approved Settlement Agreement.)

Respondent:        Ron’s Electrical Service, LLC, and Ronald C. Flores

Case Number:      CLB 2016-342-L                                                                                    

Sanction:              $10,000 fine                                                                                              

Effective Date:     11-18-16

Respondents allegedly entered into a contract to provide electrical contracting services for an unlicensed business entity performing building renovation work.  This allegedly included obtaining electrical permits for the work and calling for inspection of the work by the City and County of Honolulu.  Respondents also allegedly entered into a contract with an unlicensed person to perform work that required a license and/or aided and abetted an unlicensed person to evade the requirements of the Hawaii licensing statutes.  These actions allegedly violated HRS §§444-9.3 (Aiding or abetting an unlicensed person to evade HRS Chapter 444) and/or HRS 441-17(17).(Entering into a contract with an unlicensed contractor involving work or activity for the performance of which licensing is required by HRS Chapter 444)  (Board approved Settlement Agreement.)

BOARD OF DENTAL EXAMINERS

Respondent:        Joseph M. Perrino,

Case Number:      DEN 2014-2-L                                                                                        

Sanction:              License revoked                                                                                       

Effective Date:     11-21-16

Respondent pleaded and was found guilty of 18 counts of Theft in the 2nd Degree and 60 counts of medical assistance fraud.  Respondent was sentenced to five years probation, a victim compensation fee of $105.00, a fine of $10,000.00, and restitution in the amount of $23,200.00 to the State of Hawaii and $2,500.00 to the Hawaii Dental Services.  Respondent also did not inform the Board of his judgment of conviction within thirty days of entry of the conviction.  Respondent was found in violation of HRS §§448-17(b)(10) (By false or fraudulent representations, obtaining or seeking to obtain practice or money or any other thing of value), 448-17(b)(12) (Improper, unprofessional, or dishonorable conduct in the practice of dentistry, 436B-16 (Failure to provide written notice within thirty days of a disciplinary action by another jurisdiction), 436B-19 (Professional misconduct, incompetence, gross negligence, or manifest incapacity in the practice of the licensed profession), 436B-17(9) (Conduct or practice contrary to the standards of ethics for the licensed profession), 436B-17(12) (Failure to comply, observe, or adhere to any law in a manner such that the licensing authority deems the applicant or holder to be an unfit or improper person to hold a license), and 436B-17(14) (Criminal conviction of a penal crime directly related to the qualifications, functions, or duties of the licensed profession).  (Board Final Order after contested case hearing.)

HAWAII MEDICAL BOARD

Respondent:  Michael J. Oakes, D.O.                                                                                                                                     

Case Number: MED-2013-12L

Sanction: License revoked

Effective Date: 11-10-16

The Pennsylvania Board of Osteopathic Medicine found Respondent had an opioid dependence and was unsafe to practice medicine unless he participated in a structured treatment and monitoring program.  The suspension of his Pennsylvania license was stayed and Respondent was put on probation conditioned upon enrollment in and compliance with a mentoring program, assessments and evaluations, abstention from drugs and alcohol, submission to biological fluid testing, and a monitored practice.  Respondent did not notify the Board of the Pennsylvania order within thirty days of its issuance and failed to truthfully answer a question about his licensing status on his renewal application for his Hawaii osteopath license.  The Pennsylvania Board subsequently found Respondent had violated the terms and conditions of his probation and ordered that his probation be terminated and his Pennsylvania license by suspended for no less than 3 years.  Respondent failed to report this Pennsylvania order to the Board within thirty days.  Subsequently, Respondent’s California license to practice osteopathic medicine was revoked. Respondent did not notify the Board of the California order within thirty days of its issuance and again failed to truthfully answer questions on his Hawaii license renewal application concerning discipline in other states.  Respondent was found in violation of HRS §§453-8(a)(4) (Being habituated to the excessive use of drugs or alcohol, or being addicted to, dependent on, or a habitual user of a narcotic, barbiturate, amphetamine, hallucinogen, or other drug having similar effects),453-8(a)(5) (Practicing medicine while the ability to practice is impaired by alcohol, drugs, physical disability, or mental instability), 453-8(a)(6) (Procuring a license through fraud, misrepresentation, or deceit), 453-8(a)(9)(Conduct or practice contrary to recognized standards of the medical profession), 453-8(a)(11) (Disciplinary action by another state), 453-8(a)(14) (Failure to report to the Board, in writing, any disciplinary decision against the licensee in another jurisdiction within thirty days after the disciplinary decision is issued), and 436B-19(17) (Violations of the licensing laws or any rule or order of the Board).  (Board Final Order after contested case hearing.)

Respondent:        Linda E.S. Stiles, formerly known as Sasha E. Myers, M.D.

Case Number:      MED-2016-81-L                                                                                     

Sanction:              $500 fine

Effective Date:     11-10-16

The Kentucky Medical Board allegedly entered an agreed order imposing a fine on the

Respondent.  Respondent allegedly failed to timely disclose this disciplinary action to the Hawaii

Medical Board.  Respondent was alleged to have violated HRS §453-8(a)(11) (Disciplinary action of another state), and HRS §453-8(a)(14) (Failure to report to the Board, in writing, any disciplinary decision issued against the licensee in another jurisdiction within thirty days after the disciplinary decision is issued).  (Board Approved Settlement Agreement.)

MOTOR VEHICLE INDUSTRY LICENSING BOARD

Respondent:        Qui’s Company, Inc., dba Autobiz

Case Number:      MVI 2016-7-L

Sanction:              $5,000 fine

Effective Date:     10-18-16

Respondent allegedly employed an unlicensed motor vehicle salesperson in 2015 who engaged in the sale of motor vehicles while working for Respondent.  Respondent was alleged to have violated HRS §§437-15 (Holder of license under HRS Chapter 437 may be responsible for the conduct of holder’s agents and employees in transactions regarding motor vehicles), 437-28(a)(2) (Failure to comply with, observe, or adhere to any provision relating to the sale, taxing, or licensing of motor vehicles), and 437-28(a)(15) (Employing, utilizing or attempting or proposing to employ or utilize any person not licensed under HRS Chapter 437 who is required to be licensed).  (Board Approved Settlement Agreement.)

Respondent:        Robert K. Tashiro, individually and dba as Kailua Service Station

Case Number:      ARP 2014-59-L

Sanction:              $6,000 fine

Effective Date:     11-17-16

During the period of July 1, 2013 to March 23, 2016, Respondents allegedly engaged in activities of a mechanic for compensation without a valid mechanic’s license.  During the period of July 1, 2013 to March 23, 2016, Respondents also allegedly engaged in activities of a repair dealer for compensation without a valid repair dealer’s license.  Respondents were both alleged to have violated HRS §§437B-7 (License required for motor vehicle mechanic and motor vehicle repair dealer), 437B-11(6) (Failure to comply with HRS Chapter 437), and 436B-19(17) (Violating the applicable licensing laws).  (Board Approved Settlement Agreement.)

BOARD OF NURSING

Respondent:        Marzie A. Valdez     (Island of Hawaii)

Case Number:      RNS 2010-25-L

Sanction:              License suspended for 24 months; $500 fine; obtain Board approval of three continuing education courses within thirty days: complete the aforesaid courses within ninety days of receiving the Board’s approval; complete an additional two training courses within ninety days before the end of Respondent’s suspension; and notify current and future employers of this matter.

Effective Date:     11-3-16

The Department of Human Services (“DHS”) found that Respondent had physically and psychologically abused a sixty-five year old resident of an extended care facility, thereby causing mental or emotional distress. This finding was affirmed by a DHS hearings officer, the Circuit Court of the Third Circuit, and the Intermediate Court of Appeals.  Respondent was found to have violated HRS §§ 457-12(a)(3) (Unfitness or incompetence by reason of negligence, habits or other causes), 457-12(a)(6) (Unprofessional conduct), and 457-12(a)(7) (Willful or repeated violation of any portion of HRS Chapter 457 or any rule adopted by the Nursing Board).  (Board’s Final Order after contested case hearing.)

BOARD OF PUBLIC ACCOUNTANCY

Respondent:        Ronald G. Kadey      (Kauai)                                                                   

Case Number:      ACC 2014-19-L

Sanction:              Complete continuing education courses as required by the Board and submit satisfactory proof of such completion; $500 fine

Effective Date:     11-15-16

Respondent allegedly submitted a license renewal application in December of 2013 attesting to having earned a minimum of four continuing professional education hours in the preceding 24 months.  Respondent was allegedly unable to obtain proof of having completed all of the aforesaid continuing professional education hours in the 24 months preceding Respondent’s license renewal.  Respondent was alleged to have violated HRS §§436B-19(2) (Making untruthful or improbable statements), 436B-19(17) (Violating the licensing laws or any rule or order of the licensing authority), 466-9(b)(1) ((Fraud or deceit in obtaining a license or permit), 466-9(b)3) (Failure to maintain compliance with the requirements for issuance of a license), and HAR §16-71-(2)(a) (License of a certified public accountant and a public accountant shall be renewed biennially by submitting an application, paying a renewal fee, and attesting that the applicant has completed at least four hours of continuing professional education in ethics or professional conduct).  (Board Approved Settlement Agreement.)

Respondent:        Andrew M. Langtry     (Island of Hawaii)                                               

Case Number:      ACC 2016-5-L

Sanction:              $500 fine

Effective Date:     11-15-16

In November of 2014, Respondent was convicted of one count of operating a vehicle under the influence of an intoxicant.  On his December 2015 license renewal application, Respondent allegedly answered “no” in response to the question which asked if Respondent had been convicted in the past 2 years of a crime in which the conviction had not been annulled or expunged.  Respondent was alleged to have violated HRS §§436B-19(2) (Making untruthful or improbable statements) and 436B-19(5) (Procuring a license through misrepresentation).  (Board Approved Settlement Agreement.)

Respondent:        Christopher L. Schellman                                                                      

Case Number:      ACC 2016-6-L

Sanction:              $1,000 fine

Effective Date:     11-15-15

Respondent was subject to discipline by the Florida Board of Accountancy based on allegations public accounting services were not provide through a licensed audit firm.  As a result, the Florida Board of Accountancy allegedly fined Respondent $1,000.  Respondent allegedly failed to report the discipline to the Hawaii Board of Public Accountancy within thirty days as required by Hawaii law.  Respondent was alleged to have violated HRS §§466-9(b)(2) (Disciplinary action in another state) and 436B-19(15) (Failure to timely report disciplinary action.) (Board Approved Settlement Agreement.)

 

REAL ESTATE COMMISSION

Respondent:        James P. Brennan

Case Number:      REC 2016-36-L

Sanction:              $1,250 fine

Effective Date:     11-23-16

In 2015, Respondent allegedly handled a short term rental transaction which included advertising the property on Craigslist, executing a 30-day rental agreement with the tenants, and collecting a security deposit and rent from them.  Six weeks later, the tenancy ended, and the Respondent returned the security deposit to the tenants.  The funds for the transaction allegedly were deposited in and disbursed from the Respondent’s personal bank account.  The Respondent’s broker was allegedly unaware of the transaction, and the transaction was not processed through the brokerage firm.  Respondent allegedly violated HRS §§436B-19(7) (Professional misconduct), 467-14(b) (A licensee, being a real estate salesperson, acts or attempts to act as a real estate broker), and 467-14(13) (Violating HRS Chapter 467 or the rules adopted pursuant thereto). Respondent also allegedly violated HAR §§16-99-4(g)(Failure to deliver trust property to a principal broker or broker in charge by the next business day following receipt) and 16-99-4(i)(Handling trust properties in any way without the express written authorization of the salesperson’s principal broker or broker in charge) (Board Approved Settlement Agreement.)

Respondent:        Sarah R. McClendon

Case Number:      REC 2014-169-L

Sanction:              Voluntary revocation of license.

Effective Date:     11-23-16

Respondent allegedly engaged in real estate activity as a broker prior to obtaining her real estate broker’s license, managed properties while she was a real estate salesperson without the knowledge of her supervising broker, used her personal bank account for client trust funds, and failed to provide written rental agreements for rentals.  Respondent allegedly violated HRS§§467-14(5) (Accepting compensation from a person other than the real estate salesperson’s employer or the real estate broker with whom the real estate salesperson associates), 467-14(6) (Acting or attempting to act as a real estate broker), 467-14(8) (Any other conduct constituting fraudulent or dishonest dealings), 467-14(20) (Failure to maintain a reputation for or record of competency, honesty, truthfulness, financial integrity, and fair dealing), and 436B-17 (Professional misconduct, incompetence, gross negligence, or manifest incapacity in the practice of the licensed profession).  (Board Approved Settlement Agreement.)

Copies of the decisions are available online at: cca.hawaii.gov/oah/oah_decisions/.

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Media Contact:

William Nhieu

Communications Officer

Department of Commerce and Consumer Affairs

Email: Wnhieu@dcca.hawaii.gov

Office: (808) 586-7582

Cell: (808) 389-2788