State licensing regulators have petitioned for sanctions against the license of a Bountiful accountant accused of unprofessional conduct.

Lynne Kay Mercer, a partner in the firm Mercer & Pierce, was investigated by the federal Securities and Exchange Commission for an audit he conducted on Hiex Development USA Inc., a petition issued by the state Division of Occupational and Professional Licensing said.Investigators turned up improper valuation of assets, improper capitalization of costs of reorganizations, inadequate and inaccurrate disclosures, and failure to comply with Generally Accepted Auditing Standards.

In April 1989, the SEC denied Mercer's privilege to practice before the federal agency, the petition said.

In its petition, the state seeks sanctions against Mercer's license because he lost his SEC privileges and was found to have engaged in conduct discreditable to the accounting profession.