XAVIER BECERRA Attorney General of California DAVID E. BRICE N Supervising Deputy Attorney General

3 SUMMER D. HARO Deputy Attorney General State Bar No. 245482

1300 1 Stre 5 P.O. Box 944255

Sacramento, CA 94244-2550 6 Telephone: (916) 210-7510

Facsimile: (916) 327-8643 7 E-mail: Summer.Haro@doj.ca.gov

Attorneys for Complainant

BEFORE THE 9 PROFESSIONAL FIDUCIARIES BUREAU

DEPARTMENT OF CONSUMER AFFAIRS 10 STATE OF CALIFORNIA

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In the Matter of the Accusation Against: Case No. 2015-45 12

MARY FRANCES GALLAGHER 13 P.O. Box 3166

Modesto, CA 95353 ACCUSATION 14

Professional Fiduciary License No. PF 469 15

Respondent. 16

17 Complainant alleges:

18 PARTIES

19 1 . Rebecca May ("Complainant") brings this Accusation solely in her official capacity as

20 the Bureau Chief of the Professional Fiduciaries Bureau, Department of Consumer Affairs

21 ("Bureau").

22 2. On or about October 5, 2010, the Bureau issued Professional Fiduciary License

23 Number PF 469 to Mary Frances Gallagher ("Respondent"). The Professional Fiduciary License

24 was in full force and effect at all times relevant to the charges brought herein and will expire on

25 August 31, 2018, unless renewed.

26 JURISDICTION

27 3. This Accusation is brought before the Bureau under the authority of the following

28 laws. All section references are to the Business and Professions Code unless otherwise indicated.

( MARY FRANCES GALLAGHER) ACCUSATION

4. Code section 22, subdivision (a), states:

N "Board" as used in any provision of this Code, refers to the board in which the administration of the provision is vested, and unless otherwise expressly provided,

w shall include "bureau," "commission," "committee," "department," "division," "examining committee," "program," and "agency."

A

5. Code section 477 states:

As used in this division:

(a) "Bureau" includes "bureau," "commission," "committee," "department," "division," "examining committee," "program," and "agency."

( b ) "License" includes certificate, registration or other means to engage in a business or profession regulated by this code.

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11 6. Code section 118, subdivision (b) states:

12 The suspension, expiration, or forfeiture by operation of law of a license issued by a board in the department, or its suspension, forfeiture, or cancellation by order of

13 the board or by order of a court of law, or its surrender without the written consent of the board, shall not, during any period in which it may be renewed, restored, reissued,

14 or reinstated, deprive the board of its authority to institute or continue a disciplinary proceeding against the licensee upon any ground provided by law or to enter an order

15 suspending or revoking the license or otherwise taking disciplinary action against the licensee on any such ground.

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17 STATUTORY PROVISIONS

18 7. Section 6560 of the Code states:

19 "A licensee shall keep complete and accurate records of client accounts, and shall

20 make those records available for audit by the bureau."

21 8. Section 6580 of the Code states in pertinent part:

22 (a) The bureau may upon its own, and shall, upon the receipt of a complaint from any person, investigate the actions of any professional fiduciary,

23 including a person with a license that either restricts or prohibits the practice of that person as a professional fiduciary, including, but not limited to, a license that is

24 retired, inactive, canceled, or suspended. The bureau shall review a professional fiduciary's alleged violation of statute, regulation, or the Professional Fiduciaries Code

25 of Ethics and any other complaint referred to it by the public, a public agency, or the department, and may impose sanctions upon a finding of a violation or a breach of

26 fiduciary duty.

27 (b) Sanctions shall include any of the following:

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( MARY FRANCES GALLAGHER) ACCUSATION|

(1) Administrative citations and fines as provided in Section 125.9 for a violation of this chapter, the Professional Fiduciaries Code of Ethics, or any regulation adopted under this chapter.

N (2) License suspension, probation, or revocation.

w . . .

9. Section 6584 of the Code states in pertinent part:

A license issued under this chapter may be suspended, revoked, denied, or other disciplinary action may be imposed for one or more of the following causes:

. . .

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(f ) Failure to pay a civil penalty relating to the licensee's professional fiduciary duties.

. . .

10 (h) Violation of this chapter or of the applicable provisions of Division 4 (commencing with Section 1400), Division 4.5 (commencing with Section 4000), Division 4.7 (commencing with Section 4600), or Division 5 (commencing with

12 Section 5000) of the Probate Code or of any of the statutes, rules, or regulations pertaining to duties or functions of a professional fiduciary.

10. California Code of Regulations, title 16, section 4608, states: 14

15 The failure of a licensee to comply with a citation containing an assessment of

administrative fine, an order of abatement or both an administrative fine and an order

16 of abatement after the citation is final and has been served in accordance with the provisions of Section 1 1505(c) of the Government Code shall constitute a ground for

17 revocation or suspension of a license.

18 11. California Code of Regulations, title 16, section 4610, states:

19 (a) The time allowed for abatement of a violation shall begin the first day after

20 the order of abatement has been served or received. If a cited person who has been issued an order of abatement is unable to complete the correction within the time set

21 forth in the citation because of conditions beyond his or her control after the exercise of reasonable diligence, the person cited may request an extension of time from the

22 Bureau in which to complete the correction. Such a request shall be in writing and shall be made within the time set forth for abatement.

23 (b) When an order of abatement is not contested or if the order is appealed and

24 the person cited does not prevail, failure to abate the violation charged within the time specified in the citation shall constitute a violation; and failure to comply with the

25 order of abatement. Failure to timely comply with an order of abatement or failure to pay the fine included in the citation within the time allowed may result in disciplinary

26 action being taken by the Bureau or other appropriate judicial relief being taken against the person cited.

27 111

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( MARY FRANCES GALLAGHER) ACCUSATION|

COST RECOVERY

12. Section 125.3 of the Code provides, in pertinent part, that the Board may request the

administrative law judge to direct a licentiate found to have committed a violation or violations of w

the licensing act to pay a sum not to exceed the reasonable costs of the investigation and

enforcement of the case, with failure of the licentiate to comply subjecting the license to not being

6 renewed or reinstated. If a case settles, recovery of investigation and enforcement costs may be

7 included in a stipulated settlement.

CAUSE FOR DISCIPLINE

9 (Failure to Comply with Citation and Order of Abatement)

10 13. Respondent is subject to disciplinary action under Code sections 6580 and 6584

11 subsections (f) and (h), and California Code of Regulations, title 16, sections 4608 and 4610, in

12 that Respondent failed to comply with a citation and order of abatement after it was final and

13 within the time allotted. The circumstances are as follows:

14 14. On or about October 8, 2015, the Bureau received a written complaint from R.N.

15 alleging that Respondent had committed acts of gross negligence, unprofessional conduct, breach

16 of duty, and abandonment of conservatee by her failure and intentional actions as Conservator of

17 the Person and Estate of S.S.N.

18 15. On or about April 13, 2017, the Bureau sent an e-mail to Respondent informing her

19 that the Bureau had received a complaint regarding the S.S.N. conservatorship, and requested a

20 time to discuss the complaint. On or about April 18, 2017, the Bureau received an e-mail from

21 Respondent's attorney informing the Bureau that he had advised no contact or statements by

22 Respondent until "the matter" concludes.

23 16. On or about April 19, 2017, the Bureau's investigator e-mailed Respondent a letter

24 requesting Respondent's client records regarding the Conservatorship of the Person and Estate of

25 S.S.N., from the date Respondent became conservator until the date of the letter. The requested

26 records were due on May 19, 2017. Respondent did not provide the requested records or a

27 response to the letter.

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( MARY FRANCES GALLAGHER) ACCUSATION

17. On or about May 22, 2017, the Bureau issued Citation and Order of Abatement

number PF-2015-45 ("Citation") to Respondent for violation of Code section 6560 (failure to N

provide client records to the Bureau upon request), and served it on Respondent that same day. w

The Citation ordered that Respondent provide a complete and accurate set of client records for the +

5 S.S.N. conservatorship. The Citation also ordered that Respondent pay a fine of $500.00.

6 Respondent signed for receipt of the Citation on June 6, 2017, but did not file a written request for

7 a hearing to contest the Citation within thirty (30) days of the issuance of the citation. The

Citation became the final order of the Bureau on June 21, 2017.

9 18. Respondent did not provide the Bureau with a complete and accurate set of client

10 records for the S.S.N. conservatorship, and did not pay the $500.00 fine.

11 PRAYER

12 WHEREFORE, Complainant requests that a hearing be held on the matters herein alleged,

13 and that following the hearing, the Professional Fiduciaries Bureau issue a decision:

14 1. Revoking or suspending Professional Fiduciary License Number PF 469, issued to

15 Mary Frances Gallagher;

16 2. Ordering Mary Frances Gallagher to pay the Professional Fiduciaries Bureau the

17 reasonable costs of the investigation and enforcement of this case, pursuant to Professional

18 Fiduciary; and,

19 3. Taking such other and further action as deemed necessary and proper.

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23 DATED: 4/16 /18 Riley REBECCA MAY

24 Bureau Chief Professional Fiduciaries Bureau

25 Department of Consumer Affairs State of California

26 Complainant

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SA2017108246 28 13033664.doc

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( MARY FRANCES GALLAGHER) ACCUSATION |