october 19, 2017 . 4 · stipulated surrender of license (case no. pf-2012-23) this proceeding by...

BEFORE THE PROFESSIONAL FIDUCIARIES BUREAU DEPARTMENT OF CONSUMER AFFAIRS

STATE OF CALIFORNIA

In the Matter of the Accusation Against:

DAVID J. KATRA Case No. PF-2012-23 15559 Union Avenue, #183 Los Gatos, CA 95032 OAH No. 2017051388

Professional Fiduciary License No. PF 115

and

SUSAN ELAINE KATRA 15559 Union Avenue, #183 Los Gatos, CA 95032

Professional Fiduciary License No. PF 114

Respondents.

DECISION

The attached Stipulated Surrender of License and Order is hereby accepted and adopted as the Decision of the Director of the Department of Consumer Affairs in the above-entitled matter.

This Decision shall become effective OCTOBER 19, 2017 .

DATED: September 19, 2017 4 RYAN MARCROAT Deputy Director Legal Affairs Division Department of Consumer Affairs

XAVIER BECERRA Attorney General of California FRANK H. PACOE Supervising Deputy Attorney General JONATHAN D. COOPER Deputy Attorney General

4 State Bar No. 141461 455 Golden Gate Avenue, Suite 11000

5 San Francisco, CA 94102-7004 Telephone: (415) 703-1404

6 Facsimile: (415) 703-5480 Attorneys for Complainant

7

BEFORE THE 8 PROFESSIONAL FIDUCIARIES BUREAU

DEPARTMENT OF CONSUMER AFFAIRS STATE OF CALIFORNIA

10 In the Matter of the Accusation Against:

11

DAVID J. KATRA 12 15559 Union Avenue, # 183

Los Gatos, CA 95032 13

Professional Fiduciary License No. PF 115 14

And 15

SUSAN ELAINE KATRA 16 15559 Union Avenue, # 183



Respondents. 19

20

21

Case No. PF-2012-23

OAH No. 2017051388

STIPULATED SURRENDER OF LICENSE AND ORDER

IT IS HEREBY STIPULATED AND AGREED by and between the parties to the above-

22 entitled proceedings that the following matters are true:

23 PARTIES

24 1. Rebecca May (Complainant) is the Bureau Chief of the Professional Fiduciaries

25 Bureau (Bureau). She maintains this action solely in her official capacity and is represented in

26 this matter by Xavier Becerra, Attorney General of the State of California, by Jonathan D.

27 Cooper, Deputy Attorney General.

28 2. Respondent David J. Katra and Susan Elaine Katra (Respondents) are represented in

Stipulated Surrender of License (Case No. PF-2012-23)

this proceeding by attorney Alan R. Jampol, whose address is: 800 Wilshire Blvd., Suite 1400,

Los Angeles, CA, 90017.

3. On or about July 21, 2008, the Professional Fiduciaries Bureau issued Professional

Fiduciary License Number PF 115 to David J. Katra. The Professional Fiduciary License was in

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

6 31, 2017, unless renewed.

4. On or about July 21, 2008, the Professional Fiduciaries Bureau issued Professional

Fiduciary License Number PF 114 to Susan Elaine Katra. The Professional Fiduciary License

9 expired on March 31, 2017.

10 JURISDICTION

11 5. Accusation No. PF-2012-23 was filed before the Bureau, and is currently pending

12 against Respondent. The Accusation and all other statutorily required documents were properly

13 served on Respondents on February 28, 2017. Respondents timely filed their Notice of Defense

14 contesting the Accusation,

15 6. A copy of Accusation No. PF-2012-23 is attached as exhibit A and incorporated

16 herein by reference,

ADVISEMENT AND WAIVERS

18 7. Respondents have carefully read, fully discussed with counsel, and understand the

19 charges and allegations in Accusation No. PF-2012-23. Respondents have also carefully read,

20 fully discussed with counsel, and understand the effects of this Stipulated Surrender of License.

21 8. Respondents are fully aware of their legal rights in this matter, including the right to a

22 hearing on the charges and allegations in the Accusation; the right to confront and cross-examine

23 the witnesses against them; the right to present evidence and to testify on their own behalf; the

24 right to the issuance of subpoenas to compel the attendance of witnesses and the production of

25 documents; the right to reconsideration and court review of an adverse decision; and all other

26 rights accorded by the California Administrative Procedure Act and other applicable laws.

27 9. . Respondents voluntarily, knowingly, and intelligently waive and give up each and

28 every right set forth above.

2


CULPABILITY

N 10. Respondents understand and agree that the charges and allegations in Accusation No.

PF-2012-23, if proven at a hearing, constitute cause for imposing discipline upon their

Professional Fiduciary Licenses.

11. For the purpose of resolving the Accusation without the expense and uncertainty of

further proceedings, Respondents hereby give up their right to contest those charges.

12. Respondents agree to be bound by the discipline imposed on their Professional

Fiduciary Licenses as set forth in the Order below. Respondents understand that by signing this

stipulation they enable the Bureau to issue an order accepting the surrender of their Professional

10 Fiduciary Licenses without further process.

11 CONTINGENCY

12 13. This stipulation shall be subject to approval by the Professional Fiduciaries Bureau.

13 Respondents understand and agree that counsel for Complainant and the staff of the Professional

14 Fiduciaries Bureau may communicate directly with the Bureau regarding this stipulation and

15 settlement, without notice to or participation by Respondents or their counsel. By signing the

16 stipulation, Respondents understand and agree that they may not withdraw their agreement or

17 seek to rescind the stipulation prior to the time the Bureau considers and acts upon it. If the

18 Bureau fails to adopt this stipulation as its Decision and Order, the Stipulated Settlement and

19 Disciplinary Order shall be of no force or effect, except for this paragraph, it shall be inadmissible

20 in any legal action between the parties, and the Bureau shall not be disqualified from further

21 action by having considered this matter.

22 14. The parties understand and agree that Portable Document Format (PDF) and facsimile

23 copies of this Stipulated Settlement and Disciplinary Order, including PDF and facsimile

24 signatures thereto, shall have the same force and effect as the originals.

25 15. This Stipulated Settlement and Disciplinary Order is intended by the parties to be an

26 integrated writing representing the complete, final, and exclusive embodiment of their agreement.

27 It supersedes any and all prior or contemporaneous agreements, understandings, discussions,

28 negotiations, and commitments (written or oral). This Stipulated Settlement and Disciplinary

3


5

10

15

20

25

Order may not be altered, amended, modified, supplemented, or otherwise changed except by a

writing executed by an authorized representative of each of the parties.

WO 16. In consideration of the foregoing admissions and stipulations, the parties agree that

the Bureau may, without further notice or formal proceeding, issue and enter the following Order:

ORDER

6 IT IS HEREBY ORDERED that Professional Fiduciary License No. PF 115, issued to

David J. Katra, and Professional Fiduciary License Number PF 114, issued to Susan Elaine Katra,

are surrendered and accepted by the Professional Fiduciaries Bureau.

1. The surrender of Respondents' Professional Fiduciary Licenses and the acceptance of

the surrendered licenses by the Bureau shall constitute the imposition of discipline against

11 Respondents. This stipulation constitutes a record of the discipline and shall become a part of

12 Respondents' license history with the Professional Fiduciaries Bureau.

13 2. Respondents shall lose all rights and privileges as a professional fiduciary in

14 California as of the effective date of the Bureau's Decision and Order.

3. Respondents shall cause to be delivered to the Bureau their pocket licenses and, if one

16 was issued, their wall certificates on or before the effective date of the Decision and Order.

17 4. If either Respondent ever files an application for licensure or a petition for

18 reinstatement in the State of California, the Bureau shall treat it as a petition for reinstatement.

19 Said Respondent must comply with all the laws, regulations and procedures for reinstatement of a

revoked license in effect at the time the petition is filed, and all of the charges and allegations

21 contained in Accusation No, PF-2012-23 shall be deemed to be true, correct and admitted by said

22 Respondent when the Bureau determines whether to grant or deny the petition.

23 5. Respondent shall pay the agency its costs of investigation and enforcement in the

24 amount of $9,442.00 prior to issuance of a new or reinstated license.

ACCEPTANCE

26 I have carefully read the above Stipulated Surrender of License and have fully discussed it

27 with my attorney, Alan R. Jampol. I understand the stipulation and the effect it will have on my

28 Professional Fiduciary License. I enter into this Stipulated Surrender of License voluntarily,

4


https://9,442.00

knowingly. and intelligently. and agree to be bound by the Decision and Order of the Professional -

Fiduciaries Bureau.

w DATED: 7-13 - 17 SUSAN ELAINE KATRA Respondent

I have carefully read the above Stipulated Surrender of License and have fully discussed it

with my attorney, Alan R. Jampol. I understand the stipulation and the effect it will have on my

Professional Fiduciary License. I enter into this Stipulated Surrender of License voluntarily.

knowingly. and intelligently, and agree to be bound by the Decision and Order of the Professional

Fiduciaries Bureau.

10 DATED:

11 Respondent

12 I have read and fully discussed with Respondent David J. Katra and Susan Elaine Katra the

13 terms and conditions and other matters contained in the above Stipulated Surrender of License. 1

14 approve its form and content.

15 DATED: 1 /26 / 17 ALAN R. JAMPOL 16 Abarney for Respondent

17 ENDORSEMENT

18 The foregoing Stipulated Surrender of License and Order is hereby respectfully submitted

19 for consideration by the Professional Fiduciaries Bureau.

20 Dated: 8/17/17 Respectfully submitted,

21 XAVIER BECERRA

22 Attorney General of California FRANK H. PACON

23 Supervising Deputy Attorney General

24

25 JONATHAN D/COOPER Deputy Attorney General

20 Autornews for Complaining

27

28


Exhibit A

Accusation No. PF-2012-23

XAVIER BECERRA Attorney General of California FRANK H. PACOE Supervising Deputy Attorney General JONATHAN D. COOPER w Deputy Attorney General

4 State Bar No, 141461 455 Golden Gate Avenue, Suite 11000

un San Francisco, CA 94102-7004 Telephone: (415) 703-1404 Facsimile: (415) 703-5480

Attorneys for Complainant

BEFORE THE PROFESSIONAL FIDUCIARIES BUREAU DEPARTMENT OF CONSUMER AFFAIRS

10 STATE OF CALIFORNIA

In the Matter of the Accusation Against:

DAVID J. KATRA 12 15559 Union Avenue, # 183



And 15

SUSAN ELAINE KATRA 16 15359 Union Avenue, # 183



Respondent. 19

20 Complainant alleges:

21

Case No. PF-2012-23

ACCUSATION

PARTIES

22 Tracy A. Montez (Complainant) brings this Accusation solely in her official

23 capacity as the Chief of the Division of Programs and Policy Review, Department of Consumer

24 Affairs.

25 2. On or about July 21, 2008, the Professional Fiduciaries Bureau issued

26 Professional Fiduciary License Number PF 115 to David J. Katra. The Professional Fiduciary

27 License was in full force and effect at all times relevant to the charges brought herein and will

28 expire on October 31, 2017, unless renewed.

ACCUSATION

3. On or about July 21, 2008, the Professional Fiduciaries Bureau issued

Professional Fiduciary License Number PF 114 to Susan Elaine Katra. The Professional N

Fiduciary License was in full force and effect at all times relevant to the charges brought herein

A and will expire on March 31, 2017, unless renewed.

JURISDICTION

This Accusation is brought before the Professional Fiduciaries Bureau (Bureau),

Department of Consumer Affairs, under the authority of the following laws. All section

references are to the Business and Professions Code ("Code") unless otherwise indicated.

C STATUTORY AND REGULATORY PROVISIONS

10 5. Section 6580 of the Code states:

11 (a) The bureau may upon its own, and shall, upon the receipt of a complaint from any

12 person, investigate the actions of any professional fiduciary. The bureau shall review a

13 professional fiduciary's alleged violation of statute, regulation, or the Professional Fiduciaries

14 Code of Ethics and any other complaint referred to it by the public, a public agency, or the

15 department, and may impose sanctions upon a finding of a violation or a breach of fiduciary duty.

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

17 (1) Administrative citations and fines as provided in Section 125.9 for a violation of this

18 chapter, the Professional Fiduciaries Code of Ethics, or any regulation adopted under this chapter,

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

20 (c) The bureau shall provide on the Internet information regarding any sanctions imposed

21 by the bureau on licensees, including, but not limited to, information regarding citations, fines,

22 suspensions, and revocations of licenses or other related enforcement action taken by the bureau

relative to the licensee.

24 6. Section 6584 of the Code states, in pertinent part:

25 A license issued under this chapter may be suspended, revoked, denied, or other

26 disciplinary action may be imposed for one or more of the following causes:

27

-28 (d) Fraud, dishonesty, corruption, willful violation of duty, gross negligence or

2

ACCUSATION

incompetence in practice, or unprofessional conduct in, or related to, the practice of a professional

fiduciary. For purposes of this section, umprofessional conduct includes, but is not limited to, acts N

contrary to professional standards concerning any provision of law substantially related to the

duties of a professional fiduciary.

(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 Section 5000) of the Probate Code or of any

9 of the statutes, rules, or regulations pertaining to duties or functions of a professional fiduciary.

10

11 7. California Code of Regulations, title 16, section 4470, states:

12 (a) A licensee's fiduciary duties recognized under this Article are based upon the fiduciary

13 relationship established with the consumer as follows:

14 (1) A licensee's relationship to a conservatee when acting as a court appointed

15 conservator;

16 (2) A licensee's relationship to a ward when acting as a court appointed guardian;

17 (3) A licensee's relationship to a principal when acting under a durable power of attorney;

18 and.

19 (4) A licensee's relationship to a beneficiary when acting as a trustee.

20 (b) The licensee shall comply with all local, state, and federal laws, regulations, and

21 requirements developed by the courts and the Judicial Council as a minimum guide for the

22 fulfillment of the fiduciary duties recognized under this Article,

23 (c) The licenses shall protect all rights of the consumer that relate to licenseo's fiduciary

24 duties to the consumer.

25 (d) The licensee shall refrain from representing the consumer in areas outside the scope of

26 legal authority.

27 (e) The licensee shall seek competent professional advice whenever appropriate for the

28 benefit of the consumer,

ACCUSATION

(f) Consistent with the licensee's fiduciary duties, the licensee shall provide or arrange for

. N services to the consumer, to the extent they are appropriate and reasonable based upon the needs

W of the consumer, that are in the best interest of the consumer.

(g) Notwithstanding any other provision of law, any expense incurred by the licensee for

the delivery of services that are provided to, or arranged for, the consumer by the licensee,

including attorney fees or fees to the licensee for services, shall be considered reasonable if

approved by the court.

8. California Code of Regulations, title 16, section 4482, states:

10 (a) The licensee shall protect the assets of the estate.

10 (b) The licensee shall pursue claims against others when it reasonably appears to be in the

11 best interest of the consumer or the estate to do so.

12 (c) The licensee shall defend against actions or claims against the estate when it

13 reasonably appears to be in the best interest of the consumer or the estate to do so.

14 (d) The licensce may incur expenses that are appropriate to the estate, in relation to the

15 assets, overall investment strategy, purpose, and other relevant information and circumstances

16 when investing and managing estate assets.

17 (e) Consistent with the licensee's fiduciary duties, the licensee shall manage the assets of

18 the estate in the best interest of the consumer.

19 (f) The licensee shall manage the estate with prudence, care and judgment, maintaining

20 detailed fiduciary records as required by law.

21 COST RECOVERY

22 9 . Section 125.3 of the Code provides, in pertinent part, that a Board may request the

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

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

25 enforcement of the case,

26

27

28

ACCUSATION

FACTUAL SUMMARY

10. On or about May 26, 2010, Respondents David and Susan Katra were appointed to N

be temporary conservators for P.S.' Respondents were appointed as general conservators for

P.S. on or about July 27, 2010. Respondents served as conservators for P.S. until on or about . .A

November 30, 2011, at which time they were replaced by a new conservator. Respondents failed un

to act appropriately as conservators for P.S. The circumstances are as follows:

Construction/Remodel Issues:

11. During the term of their appointment, Respondents undertook to renovate a house

owned by P.S. The house (hereinafter "the Blom property") was located on Blom Drive in San - 10

10 Jose, California, The Katras committed the following acts of misconduct with regard to the Blom

11 property:

12 a. Rather than hire a licensed contractor to undertake this large and complex

13 renovation, Respondent David Katra acted as a general contractor on the job. David Katra

14 was not and is not a licensed contractor, and he lacked the knowledge and skill to act as a

15 general contractor. His actions in acting as a general contractor constituted unlawful

16 unlicensed contracting pursuant to Code section 7028(a).

17 b. Respondents engaged unlicensed contractors to work on the Blom property.

18 C. Respondents failed to obtain and maintain workers' compensation coverage for the

19 unlicensed individuals that Respondents hired to work on the project.

20 d. Respondents failed to obtain necessary permits for the renovations to the Blom

21 property. When questioned by the Probate Court Investigator about permits, David Katra

22 stated, untruthfully, that permits were not required for the renovation.

23 e. Much of the work performed in the renovation of the Blom property was of poor

24 quality and failed to comport with trade standards for workmanship. The successor

25 conservator was required to correct these defects, thereby incurring additional costs and

26 P.S.'s name is withheld in order to maintain P.S.'s privacy.

27 2 All acts alleged to have been committed by either of the respondents shall be considered

to have been committed or allowed by both of them. 28

5

ACCUSATION

delaying the disposition of the property.

Tucson Property:

12. During the term of their appointment, Respondents were responsible for another of

P.S:'s properties, located on Tucson Avenue in San Jose, California. Respondents failed to

exercise proper control over, and failed to accurately report their actions regarding, the Tuscon

property, as follows:

Respondents failed to adequately enter and inspect the property in order to

ascertain whether the property was compliant with safety regulations.

b. Respondent allowed P.S.'s son to collect $1,800,00 per month in rents from the

10 tenants at the Tucson property. Over a 14-month period, each month P.S.'s son collected

11 the rent, paid the mortgage out of the proceeds, and kept the remainder for himself, In

12 their reports and other documents filed with the Court, Respondents failed to disclose the

13 existence of this rental income and failed to disclose the fact that the money was not going

14 into P.S.'s estate.

15 In their reports and other documents filed with the Court, Respondents falsely

16 represented that they paid the mortgage for the Tucson property over a 14-month period.

17 False Statements:

18 13. On or about September, 2011 and October, 2011, Respondents submitted petitions

19 to the Court for approval of fees. The petitions contained false statements, as set forth

'20 hereinabove. In addition, the petitions contained false assertions that David Katra had engaged in

21 meetings with contractors.

22

23

24 FIRST CAUSE FOR DISCIPLINE

25 (Gross Negligence/Incompetence/Willful Violation of Duty)

26 14. Respondents are subject to disciplinary action pursuant to Code section 6580(a)

27 and 6584(d) in that Respondents acted with gross negligence, incompetence and/or in willful

28 violation of duty, as set forth above in paragraphs 10-13.

ACCUSATION

SECOND CAUSE FOR DISCIPLINE

(Fraud, Dishonesty)

15, Respondents are subject to disciplinary action pursuant to Code section 6580(a)

and 6584(d) in that Respondents committed acts of fraud and/or dishonesty, as set forth above in

paragraphs 10-13.

6 THIRD CAUSE FOR DISCIPLINE

(Failure to Comply with Professional Standards)

16. Respondents are subject to disciplinary action pursuant to Code section 6580(8)

and 6584, subsections (d) and (h), and pursuant to California Code of Regulations, title 16,

10 section 4470 and 4482, in that Respondents failed to comply with professional standards

substantially related to the duties of a professional fiduciary, as set forth above in paragraphs 10-

12 13

13 FOURTH CAUSE FOR DISCIPLINE

14 (Unprofessional Conduct)

15 17. Respondents are subject to disciplinary action pursuant to Code section 6580(a)

16 and 6584(d) in that Respondents committed acts of unprofessional conduct, as set forth above in

17 paragraphs 10-13.

18

19

20 PRAYER

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

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

23 1. Revoking or suspending Professional Fiduciary License Number PF 115, issued to

24 David J. Katra;

25 2. Revoking or suspending Professional Fiduciary License Number PF 114, issued to

26 Susan Elaine Katra;

27 3. Ordering Respondents to pay the Professional Fiduciaries Bureau the reasonable

28 costs of the investigation and enforcement of this case; and,

7

ACCUSATION

4. Taking such other and further action as deemed necessary and proper.

N

DATED: 2/23/ 2017 Thay C. montes W Tracy A. Montez, Chief

Division of Programs and Policy Review Department of Consumer Affairs, State of California Complainant

19

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ACCUSATION

october 19, 2017 . 4 · stipulated surrender of license (case no. pf-2012-23) this proceeding by...

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