SECURITIES EXCHANGE ACT OF 1934
Release No. 51084 / January 27, 2005

ACCOUNTING AND AUDITING ENFORCEMENT
Release No. 2178 / January 27, 2005

ADMINISTRATIVE PROCEEDING
File No. 3-11802


In the Matter of

MICHAEL C. MULLEN, CPA,

Respondent.



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ORDER OF FORTHWITH SUSPENSION PURSUANT TO RULE 102(e) OF THE COMMISSION'S RULES OF PRACTICE

I.

The Securities and Exchange Commission deems it appropriate to issue an order of forthwith suspension of Michael C. Mullen ("Mullen") pursuant to Rule 102(e)(2) of the Commission's Rules of Practice [17 C.F.R. § 200.102(e)(2)].1

II.

The Commission finds that:

1. Mullen is a certified public accountant licensed in the State of Washington. While Mullen was employed by Ernst & Young, he was assigned to the audit team for NextCard, Inc., a public company. Mullen worked as a manager on a quarterly review of NextCard's second quarter 2001 financial statement and the annual audits for 2001 and 2002.

2. On April 29, 2004, Mullen entered a plea of guilty in a pending criminal case, admitting that, on or about June 27, 2003, he was interviewed by an agent of the Federal Bureau of Investigation concerning purported alterations of Ernst & Young working papers for an audit of NextCard. Mullen admitted that he falsely stated to the agent that he had not made any changes to the Ernst & Young working papers for audits and reviews of NextCard's financial statements. Mullen further admitted that, at the time he spoke to the agent, he recalled making changes to the working papers for Ernst & Young's review of NextCard's first quarter 2001 financial statements.

3. On October 20, 2004, a judgment of conviction was entered against Mullen in United States v. Michael C. Mullen, et al, No. CR 04-152 JSW, in the United States District Court for the Northern District of California, finding him guilty of one count of concealing and covering up a material fact in violation of 18 U.S.C. § 1001(1). As a result of this conviction, Mullen was sentenced to one year probation and ordered to pay a $100 special assessment.

III.

In view of the foregoing, the Commission finds that Mullen has been convicted of a felony within the meaning of Rule 102(e)(2) of the Commission's Rules of Practice.

Accordingly, IT IS ORDERED, that Michael C. Mullen is forthwith suspended from appearing or practicing before the Commission.

By the Commission.

Jonathan G. Katz
Secretary


Endnotes