Zachary Kinshella: Financial Fraud Case

Introduction

In the world of accounting, integrity is not merely a professional virtue—it is the very foundation upon which the entire industry rests. When that integrity is compromised, the consequences can be career-ending. Such was the case of Zachary Kinshella, a member of the Chartered Professional Accountants (CPA) of Alberta, whose unethical actions in 2018 led to his permanent removal from the profession.

On January 7, 2019, the Complaints Inquiry Committee (CIC) of CPA Alberta approved a formal Sanction Agreement under Section 74 of the Chartered Professional Accountants Act. In this agreement, Kinshella admitted to acts of unprofessional conduct involving misappropriation of funds, falsified expense claims, and an attempt to redirect vendor payments for personal gain.

This case stands as a cautionary tale for accounting professionals across Canada—a reminder that ethical lapses, no matter how small or seemingly inconsequential, can destroy reputations and erode public confidence in the accounting profession.

The Background of the Case

Before the scandal, Zachary Kinshella was a registered CPA with a promising career. Known for his technical skill and attention to detail, he held positions of trust that required access to sensitive financial systems. His employer relied on him to manage payments, vendor accounts, and reimbursement processes—areas where ethical behavior is paramount.

However, sometime before July 2018, a pattern of deception began to unfold. What started as an attempt to exploit weaknesses in internal controls soon escalated into deliberate acts of fraud and financial manipulation.

By mid-2018, suspicions had arisen that Kinshella had altered financial data to direct payments to his personal bank account. An internal review was initiated, uncovering irregular transactions that could not be justified through legitimate business processes.

The matter was referred to the Complaints Inquiry Committee (CIC), which determined that Kinshella’s conduct constituted a serious breach of professional ethics as outlined in the CPA Code of Conduct.

The Allegations and Admission of Misconduct

The motion to hearing, dated July 18, 2018, outlined two specific allegations of unprofessional conduct. Both were serious in nature and demonstrated clear intent to deceive.

Allegation 1: Attempting to Redirect Vendor Payments

The first and most damaging allegation stated that Kinshella had attempted to change a vendor’s Electronic Funds Transfer (EFT) information—replacing legitimate vendor account details with his own personal bank account number. Following the alteration, he allegedly requested that a previously paid invoice be reprocessed, effectively seeking a duplicate payment to his own account.

In essence, Kinshella was attempting to defraud his employer by disguising personal financial gain as a routine business transaction. The act required deliberate manipulation of accounting systems and violated the trust inherent in his professional role.

Such behavior directly contravenes the Fundamental Principles of the CPA Code of Conduct, particularly:

• Integrity and Due Care: requiring members to be straightforward and honest in all professional relationships.
• Professional Behavior: prohibiting any conduct that discredits the profession.

The fact that the manipulation involved client and vendor information only worsened the severity of the offense.

Allegation 2: Submitting False Expense Claims

The second allegation accused Kinshella of submitting and approving three unapproved personal expense claims, which he caused to be paid to himself. These claims included expenses that had already been reimbursed through legitimate processes, resulting in double payment for the same items.

This practice is classified as expense reimbursement fraud, a common but serious form of occupational theft. What makes this offense particularly damaging is that it is not an accidental oversight—it is premeditated deceit.

Forensic reviews later confirmed that these expense claims lacked required supporting documentation and approval signatures. Some expenses were coded under misleading categories to conceal their nature.

The Sanction Agreement

Rather than proceed to a full public disciplinary hearing—which could have resulted in additional penalties—Zachary Kinshella entered into a Sanction Agreement with CPA Alberta. Under Section 74 of the CPA Act, such agreements allow for expedited resolution when the member admits to misconduct and accepts proposed sanctions.

By signing the agreement, Kinshella formally admitted to both allegations in full and acknowledged that his behavior constituted unprofessional conduct under the Act and the CPA Code of Conduct.

The Complaints Inquiry Committee approved the agreement on January 7, 2019, concluding that the penalties were appropriate given the gravity of the violations.

Sanctions Imposed

Under the terms of the Sanction Agreement, the following disciplinary measures were imposed on Zachary Kinshella:

1. Cancellation of CPA Registration
   • Effective immediately, Kinshella’s registration as a Chartered Professional Accountant was revoked.
   • This sanction means he is no longer authorized to practice accounting or use the CPA designation in any capacity within Alberta—or across Canada under reciprocity agreements.
2. Monetary Penalty – Fine of $2,500
   • Kinshella was ordered to pay a fine of $2,500 within seven months of receiving the official Statement of Costs.
   • The fine serves as both punishment and deterrent, emphasizing that professional misconduct carries financial consequences.
3. Payment of Investigation and Hearing Costs
   • Under Bylaw 1601, he was required to reimburse CPA Alberta for the costs incurred during the investigation and compliance process, also payable within seven months.
4. Mandatory Public Disclosure
   • In accordance with Section 98 of the CPA Act and Bylaw 1550, CPA Alberta mandated public disclosure of the disciplinary action.
   • This ensures transparency and protects the public from unknowingly engaging with a disciplined accountant.
5. Publication of Notice in the Edmonton Journal
   • A notice of cancellation was placed in the Edmonton Journal, notifying the public and professional community of Kinshella’s misconduct.
   • The notice included a statement that further details could be obtained directly from CPA Alberta.

This combination of sanctions—public exposure, financial restitution, and loss of professional status—represents the most severe disciplinary response short of criminal prosecution.

Why the Sanctions Were Severe

While $2,500 might seem modest as a fine, the true punishment lay in the cancellation of registration and the public disclosure of misconduct.

The CPA designation is not just a professional title—it is a symbol of trust. Losing it is equivalent to professional exile. Once a CPA’s registration is canceled for ethical reasons, reinstatement is rare and requires proof of rehabilitation, full repayment, and demonstration of moral integrity over several years.

In disciplinary precedent, sanctions of this magnitude are typically reserved for cases involving:

• Fraudulent intent
• Financial misappropriation
• Deception of clients or employers
• Reputational damage to the profession

Kinshella’s actions met all these criteria. His attempt to divert funds for personal benefit, coupled with falsified expenses, indicated deliberate misconduct rather than negligence.

The Ethics Behind the Case

Professional ethics are the cornerstone of the CPA profession. Members are expected to uphold five fundamental principles:

1. Integrity and Due Care
2. Objectivity
3. Professional Competence
4. Confidentiality
5. Professional Behavior

Kinshella’s actions violated nearly all of them. His deliberate alteration of vendor data demonstrated a lack of integrity and objectivity, his falsified expenses showed a lack of due care, and his exploitation of internal systems damaged the reputation of the profession.

The case also raises questions about corporate oversight and internal controls. How was one employee able to change vendor payment data and approve his own expenses without detection? While Kinshella bears full responsibility, the incident underscores the importance of segregation of duties and audit oversight in all financial systems.

Legal and Professional Implications

Although the sanction agreement handled the matter internally within CPA Alberta, Kinshella’s conduct could also qualify as criminal fraud under the Criminal Code of Canada (Section 380).

However, there is no public record of criminal prosecution, suggesting that either:

• The employer chose not to pursue criminal charges, or
• A settlement was reached privately following restitution.

Even without a criminal conviction, the CPA sanction carries long-term consequences:

• Kinshella’s name remains on the public discipline registry of CPA Alberta, accessible to potential employers and regulators.
• The disciplinary notice, once published in the Edmonton Journal, became part of the public record and searchable online.
• He is barred from reinstatement without approval from CPA Alberta’s Registration Committee, which would require evidence of full repayment, rehabilitation, and good character references.

Broader Lessons for the Accounting Profession

The case of Zachary Kinshella serves as a wake-up call to accountants, employers, and regulators alike. It underscores the fragility of trust in a profession that relies on ethical judgment as much as technical competence.

1. Ethical Failures Often Begin Small

Many frauds start with small acts of rationalization—an unauthorized reimbursement, a temporary “loan” from company funds, or a minor adjustment “to fix an error.” Over time, such behavior escalates. For Kinshella, it culminated in a full attempt to divert vendor payments.

2. Internal Controls Are Not Optional

Organizations must implement strong controls, including:

• Dual authorization for vendor data changes.
• Independent expense claim audits.
• Segregation between payment initiation and approval.

A breakdown in these controls gave Kinshella the opportunity to exploit system weaknesses.

3. Professional Bodies Must Enforce Transparency

CPA Alberta’s public disclosure ensures accountability. By publishing sanctions in a major newspaper and maintaining online access to disciplinary records, the organization reinforces the message that ethical breaches will not be hidden.

4. Reputational Damage Extends Beyond the Individual

Each incident of misconduct harms not only the individual accountant but also public confidence in the entire profession. When one CPA defrauds an employer, clients begin to question all accountants. Transparency and swift disciplinary action are crucial to preserving trust.

Aftermath and Professional Fallout

Following his disbarment, Zachary Kinshella’s name was added to the CPA Alberta disciplinary register under the “Cancelled Members” section. Employers, clients, and regulatory bodies can verify his sanction history with a simple online search.

There is no public record indicating that Kinshella ever reapplied for membership or appealed the decision. Under CPA Alberta regulations, reinstatement after cancellation for dishonesty is rare and requires a minimum of five years, along with compelling evidence of rehabilitation and restitution.

Professionally, such sanctions are career-ending. Without the CPA designation, employment in accounting, finance, or auditing becomes nearly impossible. Even non-regulated roles may be out of reach, as employers conduct background checks that reveal disciplinary history.

CPA Alberta’s Role in Upholding Standards

The Chartered Professional Accountants of Alberta plays a vital role in maintaining the integrity of the profession through enforcement of the CPA Act and its bylaws.

Under Section 98 of the Act, the organization is obligated to:

• Publish disciplinary decisions.
• Notify the public of any cancellations or suspensions.
• Maintain a transparent record for consumer protection.

By acting decisively in the Kinshella case, CPA Alberta reinforced its mandate: to protect the public, not the professional.

Its Complaints Inquiry Committee, composed of senior CPAs and legal advisors, demonstrated that even in cases involving smaller amounts of money, intentional fraud warrants maximum sanction.

Conclusion

The story of Zachary Kinshella is not merely about financial misconduct—it is about the collapse of professional ethics and the consequences of betraying public trust.

In trying to enrich himself through deception, Kinshella lost everything that gave meaning to his career: his professional title, his reputation, and his standing in the accounting community.

His case serves as a permanent reminder that ethical integrity is the accountant’s most valuable asset, and once it is lost, no amount of technical skill can restore it.

Through decisive action, CPA Alberta reaffirmed its commitment to protecting the credibility of the accounting profession. The lesson is clear—fraud, no matter how small, will not be tolerated, and those who betray the trust placed in them will face the full weight of professional justice.

Written by

Nancy Drew

Updated

3 months ago