Aluisi

NOT FOR PUBLICATION 2 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA 5 In re: Case No. 18-14586-A-

JAMES RICHARD JORGENSEN and LAURA MAE JORGENSEN,

9 Debtors.

11 DONALD G. ALUISI Adv. No. 19-01026-A and KAREN ALUISI,

MEMORANDUM

Plaintiffs,

NEA-

V.

JAMES RICHARD JORGENSEN,

Defendant.

18 Argued and submitted on November 12, 2019 19 at Fresno, California 20 Honorable Fredrick E. Clement, Bankruptcy Judge Presiding

22 Appearances: Kurt F. Vote, Wanger Jones Helsley PC for plaintiffs Donald G. Aluisi and Karen Aluisi; Nicholas E. Aniotzbehere, Yarra Law Group for defendant James Richard Jorgensen 25

27 Malpractice becomes fraud when an accountant knowingly conceals his own error. Former clients sued their accountant for two counts of fraud. Count I alleges that the accountant understated the clients’ tax basis on their state income tax returns. It also hints discovery from his reduction of the correct…