QuickBooks Hosting, Intuit Integrity, Joanie Mann, CPAasp / InsynQ, Criminal?

Filed in Intuit QuickBooks by on May 12, 2010

I believe Joanie Mann is a very reputable CPA. She also was long-time VP or associate of CPAasp / InsynQ, a leading QuickBooks hosting company, which may be the oldest QuickBooks hosting company. CPAasp / InsynQ also was one of the first two licensed QuickBooks hosting companies. However, it got this license many years after it began QuickBooks hosting. I suspect CPAasp / InsynQ and Joanie Mann got many assurances, from top QuickBooks executives, that the QuickBooks Software License Agreement prohibition, on shared computer use, would not result in their being charged as criminals. I am sure of this not only because of what I know about CPAasp / InsynQ and Joanie Mann, but because of what I know top Intuit executives inducing others in the QuickBooks hosting industry. As a result, Joanie Mann and I had a friendly exchange today on the Joanie Mann Bookkeeping in Bunny Slippers Facebook page


 Mike Block CPA

Hi Joanie Mann: Are you aware that all the execs, of even companies like InsynQ, are guilty of massive criminal and civil copyright violations? Intuit may license QuickBooks hosting companies to use shared computers, but it has no President or  Governor with the legal authority to pardon past crimes.




 Joanie Mann

Not quite sure what your basis for this statement is… can you edify me as to the violations?




 Mike Block CPA

Sure Joanie. Thank you very much for your fast reply. I am not accusing you of wrongdoing, as I know too much about you to suspect you would do anything deliberately wrong.

Despite this, the QuickBooks Software License Agreement has long had an essentially unchanged prohibition on shared computer use. QuickBooks hosting, under Terminal Services QuickBooks, hosting, under Terminal Services and Citrix, entirely relies on the use of such shared computers. Therefore, unlicensed hosting involves massive recurring civil and criminal copyright violations, worthy of RICO Act prosecution. 

I know that CPAasp / InsynQ was one of the first companies licensed for QuickBooks hosting. I also suspect you and CPAasp / InsynQ executives received many personal assurances, from top Intuit executives, that you were not doing anything wrong. I know that because I know many others in the industry that received such assurances, directly and indirectly. However, in view of the QuickBooks Software License Agreement, CPAasp / InsynQ executives remain guilty of all violations committed prior to licensing.

Intuit cannot legally issue pardons for these violations. It also has not changed its license to retroactively exclude liability for these violations, if it could do this. To me, this makes top Intuit executives responsible for inducing these massive copyright violations, so they are criminal co-conspirators.

My  http://www.QuickBooks-Blog.com/ provides many more details on this.


 Joanie Mann

Actually – that’s quite correct. the language has been there for quite some time. The interesting question becomes: if there is any enforcement of that language, could it be selective enforcement? I would think not.

 Mike Block CPA Thank you very much Joanie. I really appreciate your comments and your insight. I could not possibly have so precisely isolated the entire QuickBooks hosting issue in so few words. As you said,

“Actually – that’s quite correct. The [shared computer] language has been
there [in the 
 QuickBooks Software License Agreement] for quite some time.
The interesting question becomes: if there is any enforcement of that
language, could it be selective enforcement? I would think not.”

To me, the answer to your selective enforcement question is ridiculously simple. I totally agree with your conclusion, “I would think not.”

There can be absolutely NO selective enforcement of this language at all, for many reasons. Intuit has long known that there were thousands to hundreds of thousands of daily civil and criminal violations of the language. However, it deliberately let InsynQ and others do this, on a very large scale, for 4,000 or more days, before licensing them. By then, more than a thousand companies were solely involved in these supposed shared computer violations.

Of course, as CPAs, we know that the legal word for this failure to act, when there is knowledge and an implied obligation to do so, is laches. This word may not apply to the overly complex 12,000+ word QuickBooks Software License Agreement, which may apply to users. It may not apply because I believe the QuickBooks SLA expressly says it does not. However, it clearly applies to Intuit’s dealing with the no-Intuit-contract QuickBooks hosting industry.

Moreover, top Intuit executives did not merely sit idly by for up to 13 years. Instead they repeatedly and very actively, directly and indirectlively, encouraged these violations. They did this with all of the QuickBooks hosting companies and with their users, by how they treated all they contacted. You, your colleages, I, and many in the industry, as well as our consultants and users could testify entensively about this active encouragement. However, we should not even need to do this. The QuickBooks website is loaded with cases showing how Intuit personnel fully documented their continuing support of this now-to-be-effectively retroactively banned shared terminal server use.

Your selective enforcement question, however, relates to much more than you may have intended. The QuickBooks Software License Agreement is a contract between Intuit and QuickBooks users. Terminal server companies are not parties to this contract, unless it becomes part of their Commercial licenses. Intuit is now, however, seeking to impose the shared computer use term, in the QuickBooks SLA, as a way to force a thousand or more QuickBooks hosting companies out of business, or into extremely burdensome Commerical contracts. The shared computer use, however, relates to criminal copyright violations. Therefore, the retroactive imposiition of this criminal penalty effectively violates our Constitutional penalty against ex-post facto laws.

If we agree Intuit cannot enforce a criminal prohibition retroactively, then we also should agree that they cannot impose it where they encouraged an entire industry and its users to violate it. Likewise, I most respectively submit that we should totally agree that they can no longer enforce it at all. However, even if we are wrong or disagree about this, Intuit Integrity should make its top Intuit executives agree that they are the most guilty criminal co-conspirators of all.

Now you can see why I said I could not possibly have so precisely isolated the entire QuickBooks hosting issue, in so few words, as you did. 

– – – – – – – – – –

Now we must see if there is any Intuit integrity left. There is no Intuit integrity in criminalizing an entire industry, along with all its executives and users, while criminalizing top Intuit leaders, for the sake of a few dollars. I long ago tried to save Intuit integrity by telling our Intuit friends the fastest and easiest way to raise far more revenue, without criminalizing their friends, or putting thousands out of business and killing 50,000 jobs.   

This is the Intuit integrity that made me fall in love with a company and its leaders, for the only time in my life. This is the Intuit integrity that made me spend thousands of unpaid hours, helping QuickBooks users and our Intuit friends. This is the Intuit Integrity, and the Do Right approach, which inspired these noble 1993 words:

Intuit Mission, and Operating Values:

1. Integrity Without Compromise. 

Intuit is built on integrity. In all we do, we maintain the highest standards, never approaching what could be considered questionable behavior. On this. we never compromise. Having integrity means more to us than simply the absence of deception. It means we are completely forthright in all our dealings… Integrity builds trust. Only through trust do successful, long-term working relationships flourish.

2. Do Right by All Our Customers.
Doing right means acting with the best interests of the other party in mind. We commit ourselves not only to meeting expectations, but to exceeding them. 

– – – – – – – – – –


I am not fighting for money, but for the inspiring Intuit integrity that has long been revolutionizing our lives. I am not fighting to save a few dollars on QuickBooks hosting, but so that this inspiring Intuit integrity will keep revolutionizing our lives, long after I am gone. I am fighting for Intuit integrity by spending far more in billable time each day, on articles like this, than I spend on a year of QuickBooks hosting. I am fighting for what should be tens of millions of current and future Intuit product users, who will badly need Intuit integrity, though very few will ever hear about it.

Most of all, I am fighting for Intuit integrity so I do not have to keep hurting our Intuit friends, who normally do so much for the small businesses that create substantially all the net new U.S. jobs. What they have seen so far is not even a pin prick, compared to what they may soon force me to do, if they do not again practice Intuit integrity Without Compromise.

I am especially fighting for the Intuit Integrity Without Compromise of my best Intuit friend. I could never dream of doing his job, but he made a bad mistake by limiting my access to him when he became CEO.

By the way, Intuit has this number to report illegal or unethical activity 877-379-3939.
Use this copyright site http://www.justice.gov/criminal/cybercrime/reporting.htm, but please also Comment below.











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