Scott T. Urban has filed a lawsuit against his former accountant, alleging negligence and breach of fiduciary duty in a California court. The complaint was filed on October 11, 2024, by Urban's attorney Pauline R. Reimer in the Superior Court of California, County of Santa Clara, naming Cindy F. Cheng as the defendant.
The case centers around Urban's accusations that Cheng, a certified public accountant practicing in San Jose, failed to properly manage and disclose conflicts of interest related to pension plans associated with Urban Peripherals, Inc., a company co-owned by Urban and his brother Craig. According to the complaint, Cheng provided accounting services to Urban from before 1998 until April 2019. During this time, she allegedly failed to inform him about critical financial matters concerning the company's pension plans and other financial dealings.
Urban claims that Cheng did not disclose her professional relationship with Allied Consultants, Inc., which took over as third-party administrator for the pension plans in 2008. He alleges that Cheng neglected her duties by not informing him about changes affecting his interests in these plans and by failing to provide necessary documentation regarding contributions and account balances.
Urban further accuses Cheng of being involved in conflicts of interest since 2004 by representing only Craig's interests without disclosing this to him or obtaining his consent. The complaint highlights several instances where Cheng allegedly failed to act with due diligence and care expected from a competent accountant.
As part of the relief sought, Urban is asking for actual damages exceeding the court's jurisdictional limits, prejudgment interest, costs incurred during litigation, and reasonable attorneys' fees. He argues that due to Cheng's negligence and breaches of fiduciary duty, he lost his entire participant pension account balances and had to incur significant legal expenses trying to reclaim them.
The legal proceedings are set against a backdrop where Urban previously faced criminal charges related to alleged misappropriation of funds from one of the pension accounts—a charge he vehemently denies—and an ERISA action that was dismissed due to statute limitations issues. The dismissal left unresolved questions about whether proper disclosures were made by Cheng regarding the management of these accounts.
Representing Scott T. Urban is attorney Pauline R. Reimer from Earle & Reimer law firm. As this case unfolds under Case ID: 24CV449317 at the Superior Court of California in Santa Clara County, it remains under scrutiny whether Cindy F. Cheng will be held accountable for her alleged professional misconduct.