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Brewer PAC treasurer Robert Hockensmith was censured He's on probation with accountancy board by Yvonne Wingett Sanchez - Jul. 4, 2012 10:10 PM The Republic | azcentral.com The treasurer of Gov. Jan Brewer's political-action committee is on probation with the Arizona State Board of Accountancy, and the Arizona Corporation Commission revoked his registration as a security salesman in 2009, public records show. The commission also fined him $200,000. The corporation commissioners determined that accountant Robert Hockensmith violated state laws and engaged in dishonest or unethical practices. Records show Hockensmith was accused of selling unregistered securities and accepted personal loans from customers to purchase the securities himself. Among the findings, the commissioners determined Hockensmith directly or indirectly defrauded his clients, misrepresented that the securities were unregistered, and failed to disclose the risks related to the purchase of the securities. Records show Hockensmith, then a Glendale resident, reportedly sold the unregistered securities to customers of his CPA firm. Those customers invested about $8 million in the securities through his efforts and lost about $6 million. Some of those customers invested their life savings, the documents state. Following the findings, the Arizona State Board of Accountancy, which licenses accountants, in October 2010 placed Hockensmith on probation for three years. Hockensmith can continue to work as an accountant, but the board is monitoring him. His probation is scheduled to end next year. Hockensmith did not respond to calls seeking comment; he and his secretary referred calls and e-mails to Paul Senseman, spokesman for Brewer's committee, Jan PAC. Senseman said the committee is "not familiar with anything that may be of concern" related to Hockensmith. When asked why Hockensmith was named treasurer, Senseman said he did not know. "I think he's been an accountant for a number of years," Senseman added. "I think it's just someone who's done bookkeeping in that arena for quite some time. We're not aware of any particular challenges or problems. He does the bookkeeping for the filing, and there haven't been any questions or complaints or doubts about those filings that I've heard of or seen." Brewer's office spokesman, Matthew Benson, referred calls to the PAC. Brewer created the PAC in 2011 partly to fight illegal immigration and the federal health-care mandate. Brewer has used the U.S. Supreme Court's ruling on Senate Bill 1070 and the highly publicized finger-pointing incident with President Barack Obama to raise money. On Facebook and Twitter, she asks supporters to donate funds to combat Obama's "war on Arizona." Senseman said the PAC has had "robust" activity within the last few weeks. The PAC will soon file updated paperwork with the Federal Election Commission. Jan PAC had raised $21,912 since it was formed, according to January filings with the FEC. |