Like many, Christopher Acarregui sought to capitalize on demand for Central Oregon real estate at the height of the bubble.

Like some, the Bend certified public accountant had unconventional methods.

Acarregui sold stakes in real estate investment ventures across the Northwest to at least 14 clients of his accounting business. State records show he pocketed some of that investment money and failed to adequately inform his clients of their differing interests in the projects, both violations under Oregon administrative rules governing accountants’ professional conduct, integrity and objectivity.

In October, Acarregui’s public accountancy license was revoked after an unprecedented, costly four-year Oregon Board of Accountancy investigation. He was ordered to pay $60,000 in penalties as a condition of the settlement, although the total penalty for the 40 documented violations of Oregon law and administrative rules came to $200,000, according to the final order revoking his license.

“The conduct described … constitutes multiple and separate violations of the Oregon Laws and Administrative Rules applicable to the practice of public accountancy as set forth above,” the final order states. Acarregui’s case racked up nearly $200,000 in legal fees for the board, according to state records provided to The Bulletin.

Acarregui had practiced as a public accountant at three Bend firms since 1996, according to the final order. Each firm was registered in his name, according to the Oregon Secretary of State’s business records. His license was first granted in 1989.

Acarregui created at least seven limited liability corporations, selling membership interests to at least 14 of his clients. He failed to properly disclose that his interest in the investments and his clients’ interests in the investment ventures differed: the responsibilities of a certified public accountant, whose goal is to provide objective, reliable services, and a salesman, who is trying to close a deal, are often in direct opposition.

And Acarregui promised more than he could deliver, investing in real estate properties across the Northwest that didn’t offer nearly the return he was banking on.

Acarregui’s attorney, Frank Lagesen of Portland, declined to comment on the case or final order. Listed numbers for Acarregui were disconnected and attempts to reach him for comment were unsuccessful. An education notice published in The Bulletin in January 2014 stated Acarregui had earned an MBA from Clarion University in Clarion, Pennsylvania.

“This was very serious conduct, and it warranted a very high level of civil penalties,” said Martin Pittioni, executive director of the Oregon Board of Accountancy, who said the length and depth of the investigation were exceptional . “We’ve never had a case like this.” The board had to go before the Oregon Legislature to request emergency funds to carry out the litigation.

Two Bend businessmen who invested with Acarregui, Scott Bundy and Graham Hausler, in total paid $100,000 in earnest money for a property in Idaho, Silver Mountain Estates.

The deal did not close and Bundy and Hausler requested Acarregui transfer the refund of that money — some $85,000 — to another of Acarregui’s investment companies. Instead, Acarregui and his partner each deposited half of that money into their personal bank accounts, according to the final order . Neither Hausler nor Bundy returned calls for comment.

Acarregui borrowed money from clients, and is paying Gary Jacquot, of Bend, $1,000 a month to make up a $126,000 debt, according to the final order. He has not repaid a $225,000 loan made to him by Larry Solie, formerly of Bend.

Acarregui also falsely represented that two licensed public accountants, Geoff Wall and Robert Irving, were members of his accounting firm, though they simply shared office space with Acarregui in Bend. Their names appeared on the firm’s letterhead and were included in the firm’s application for renewal in 2007. Neither Wall nor Irving returned calls for comment.

Among Acarregui’s clients was Marie Tyvoll, of Portland. She and Acarregui were junior high school classmates in Salem; he provided accounting services to her, including preparation of her individual income tax returns and tax planning advice.

In 2005, Acarregui planned to purchase 41 acres of property in Redmond, which became known as the Maple Road property.

He wanted to sell the contract to purchase the property to a third party before the closing date of the original purchase contract. He told Tyvoll, who was going to sell her house in Seattle, she could receive up to twice an initial investment of $200,000 in the property, plus 4 percent — her percentage interest in the limited liability corporation set up for the investment venture — of any remaining profits.

She invested the money. None of it materialized as profit. Acarregui neglected to inform Tyvoll or any of his investors that he had been unable to sell the property until January 2009, even though the due date to sell was June 2008 .

“He devastated me financially,” Tyvoll said Friday. Currently an entrepreneur who works with startups, she said that after the investment fell through, she moved in with her parents; she has no retirement savings.

At the time of the investment, Acarregui had ensured her that her investment would be paid back in full, Tyvoll said Friday. “I gave it to Chris because he promised unequivocally that I would get the money back,” she wrote in an email. “It was almost all the money I had at the time so I couldn’t afford to lose it under any circumstances, which he of course knew.”

Furthermore, Acarregui did not report “any portion of the sale of the Seattle property on Tyvoll’s tax return,” the final order states. He also didn’t include that the house had been used in part as a rental property. Acarregui did not seek legal counsel and didn’t offer or take steps to refund or repay Tyvoll the $200,000 she had invested, according to the final order revoking Acarregui’s license.

In April 2009, Tyvoll filed suit against Acarregui in Multnomah County. The case was then transferred to Deschutes County, where it was settled. Acarregui’s insurance carrier paid Tyvoll about $82,500, $11,000 of which he claims to have paid personally, according to the final order. Oregon administrative rules require accountants to notify the board of any litigation pending against them within 45 days of the lawsuit’s filing. Acarregui neglected to meet this deadline.

As a condition of the settlement, the board required that Acarregui provide notice to all clients, including those transferred or sold to Caleb Stoddart, a certified public accountant in Bend. Stoddart did not return a call for comment Friday.

For Pittioni, who became executive director of the accountancy board in 2012, the case has been active throughout his tenure. Usually, Pittioni said, the board is able to reach settlements with accountants who violate rules fairly easily. Not so for Acarregui: He did not settle with the board until three days into his trial, when Pittioni said the former accountant “realized (the board) had evidence and it was not OK.”

“He is removed from the profession, and that’s about as serious an outcome as it gets,” Pittioni said. “It’s just very unfortunate that it had to take that level of litigation to get there.”

— Reporter: 541-383-0376,

cwithycombe@bendbulletin.com

Editor’s note: This story has been corrected. In the original version, the article stated Acarregui was required to transfer or sell his clients to Caleb Stoddart. Acarregui was merely required to provide notice to those clients. The Bulletin regrets the error.