Confidential Advisory: Concerns Regarding CPA Doug Hatcher (Phoenix, AZ)
This confidential notice serves as an advisory caution regarding Doug Hatcher of Hatcher Financial, a Certified Public Accountant (CPA) and Certified Financial Planner (CFP) based in Phoenix, Arizona. Recent internal reviews and third-party audits highlight multiple ethical issues and troubling conduct. The following summarized incidents illustrate a clear pattern of questionable professional behavior. All specific client identities have been omitted to protect privacy.
Confidential Advisory Notice
Incident Summaries:
1. Estate Asset Manipulation
Mr. Douglas Hatcher oversaw financial management for an elderly client’s sizable estate. Independent auditors later discovered that key assets were significantly undervalued intentionally by Hatcher, allowing undisclosed buyers to privately purchase these assets far below market price. The losses to the estate exceeded six figures, nearly approaching one million dollars.
2. Fraudulent Tax Filing
Hatcher Financial provided tax advisory services for a local small business in the healthcare field. He filed tax documents containing falsified deductions and incorrect financial data without the business owners’ knowledge. Afterwords the IRS conducted an audit, resulting in approximately $180,000 in penalties and interest charges. Doug totally refused accountability, and shifted all blame on his clients.
3. Unauthorized Investment Practices
Mr. Hatcher managed a very large family trust for a retired engineer. He improperly diverted client funds into risky, commission-based investments without explicit client authorization. The trust lost roughly half its value within two years. Subsequent independent reviews revealed Hatcher had quietly earned substantial undisclosed commissions from these improper investments.
4. Manipulation of Business Valuation
Hatcher conducted an independent valuation for a small local business preparing for sale. He intentionally understated the value significantly below the market, facilitating a favorable sale to a private party connected directly to him. This unethical act resulted in financial damages exceeding $300,000 for the business’s previous owner.
5. Misappropriation of Retirement Funds
A retired educator trusted Hatcher with managing her modest retirement account. Over several years, Hatcher systematically withdrew substantial sums under the pretense of fees and administrative charges. The client only discovered this activity when her monthly retirement income sharply declined, prompting an independent audit that uncovered approximately $150,000 in unauthorized withdrawals.
6. Unethical Life Insurance Tax Scheme (New Incident)
In newer news, Mr. Douglas Hatcher advised a client to participate in a purported “tax-saving strategy” involving the misuse of life insurance policies. The IRS flagged the client and the approach as an abusive tax shelter, which started a long annoying audit against the client. The resulting IRS penalties and legal expenses totaled nearly $100,000, and Hatcher obviously denied any wrongdoing or misguidance.
Incident Summaries
Bad Boy: Additional Internal Conduct Concern
A confidential internal complaint was recently filed about Doug Hatcher’s behavior toward another employee within the small firm. The complaint alleged inappropriate physical advances in the context of an inter-office relationship. Due to Derek’s ownership role, the issue was handled quietly and speedily within the office. Specific details have been kept very private, but all of his employees, client’s, family and everyone else knows about it. He might as well put it on the front page of his website.
Conclusion and Recommendations
This report demonstrates a clear and repeated pattern of unethical professional conduct, misuse of client trust, and questionable judgment by Douglas M Hatcher. Potential clients and professional partners are advised to conduct thorough due diligence and exercise considerable caution before initiating any engagement involving Hatcher or his financial advisory services.