diff --git a/server/src/com/cloud/projects/dao/ProjectAccountDao.java b/server/src/com/cloud/projects/dao/ProjectAccountDao.java
index 3e72eee9974..f113d283c39 100644
--- a/server/src/com/cloud/projects/dao/ProjectAccountDao.java
+++ b/server/src/com/cloud/projects/dao/ProjectAccountDao.java
@@ -36,7 +36,9 @@ public interface ProjectAccountDao extends GenericDao<ProjectAccountVO, Long> {
 
     List<Long> listPermittedAccountIds(long accountId);
 
-    List<Long> listAdministratedProjects(long adminAccountId);
+    List<Long> listAdministratedProjectIds(long adminAccountId);
 
     Long countByAccountIdAndRole(long accountId, ProjectAccount.Role role);
+    
+    void removeAccountFromProjects(long accountId);
 }
diff --git a/server/src/com/cloud/projects/dao/ProjectAccountDaoImpl.java b/server/src/com/cloud/projects/dao/ProjectAccountDaoImpl.java
index 1eb28cae1f9..49e31114bb1 100644
--- a/server/src/com/cloud/projects/dao/ProjectAccountDaoImpl.java
+++ b/server/src/com/cloud/projects/dao/ProjectAccountDaoImpl.java
@@ -21,6 +21,8 @@ import java.util.List;
 
 import javax.ejb.Local;
 
+import org.apache.log4j.Logger;
+
 import com.cloud.projects.ProjectAccount;
 import com.cloud.projects.ProjectAccountVO;
 import com.cloud.utils.db.GenericDaoBase;
@@ -36,6 +38,7 @@ public class ProjectAccountDaoImpl extends GenericDaoBase<ProjectAccountVO, Long
     final GenericSearchBuilder<ProjectAccountVO, Long> AdminSearch;
     final GenericSearchBuilder<ProjectAccountVO, Long> ProjectAccountSearch;
     final GenericSearchBuilder<ProjectAccountVO, Long> CountByRoleSearch;
+    public static final Logger s_logger = Logger.getLogger(ProjectAccountDaoImpl.class.getName());
 
     protected ProjectAccountDaoImpl() {
         AllFieldsSearch = createSearchBuilder();
@@ -124,7 +127,7 @@ public class ProjectAccountDaoImpl extends GenericDaoBase<ProjectAccountVO, Long
     }
 
     @Override
-    public List<Long> listAdministratedProjects(long adminAccountId) {
+    public List<Long> listAdministratedProjectIds(long adminAccountId) {
         SearchCriteria<Long> sc = AdminSearch.create();
         sc.setParameters("role", ProjectAccount.Role.Admin);
         sc.setParameters("accountId", adminAccountId);
@@ -138,5 +141,16 @@ public class ProjectAccountDaoImpl extends GenericDaoBase<ProjectAccountVO, Long
         sc.setParameters("role", role);
         return customSearch(sc, null).get(0);
     }
+    
+    @Override
+    public void removeAccountFromProjects(long accountId) {
+        SearchCriteria<ProjectAccountVO> sc = AllFieldsSearch.create();
+        sc.setParameters("accountId", accountId);
+
+        int rowsRemoved = remove(sc);
+        if (rowsRemoved > 0) {
+            s_logger.debug("Removed account id=" + accountId + " from " + rowsRemoved + " projects");
+        }
+    }
 
 }
diff --git a/server/src/com/cloud/user/AccountManagerImpl.java b/server/src/com/cloud/user/AccountManagerImpl.java
index a634c0ebcf4..9773fb5eb18 100755
--- a/server/src/com/cloud/user/AccountManagerImpl.java
+++ b/server/src/com/cloud/user/AccountManagerImpl.java
@@ -445,20 +445,15 @@ public class AccountManagerImpl implements AccountManager, AccountService, Manag
     @Override
     public boolean deleteAccount(AccountVO account, long callerUserId, Account caller) {
         long accountId = account.getId();
-
+        
+        //delete the account record
         if (!_accountDao.remove(accountId)) {
             s_logger.error("Unable to delete account " + accountId);
             return false;
         }
 
-        List<UserVO> users = _userDao.listByAccount(accountId);
-
-        for (UserVO user : users) {
-            _userDao.remove(user.getId());
-        }
-
         if (s_logger.isDebugEnabled()) {
-            s_logger.debug("Remove account " + accountId);
+            s_logger.debug("Removed account " + accountId);
         }
 
         return cleanupAccount(account, callerUserId, caller);
@@ -468,8 +463,20 @@ public class AccountManagerImpl implements AccountManager, AccountService, Manag
     public boolean cleanupAccount(AccountVO account, long callerUserId, Account caller) {
         long accountId = account.getId();
         boolean accountCleanupNeeded = false;
-
+        
         try {
+            //cleanup the users from the account
+            List<UserVO> users = _userDao.listByAccount(accountId);
+            for (UserVO user : users) {
+                if (!_userDao.remove(user.getId())) {
+                    s_logger.error("Unable to delete user: " + user + " as a part of account " + account + " cleanup");
+                    accountCleanupNeeded = true;
+                }
+            }
+            
+            //delete the account from project accounts
+            _projectAccountDao.removeAccountFromProjects(accountId);
+            
             // delete all vm groups belonging to accont
             List<InstanceGroupVO> groups = _vmGroupDao.listByAccountId(accountId);
             for (InstanceGroupVO group : groups) {
@@ -582,7 +589,7 @@ public class AccountManagerImpl implements AccountManager, AccountService, Manag
             }
 
             // delete account specific Virtual vlans (belong to system Public Network) - only when networks are cleaned
-// up
+            // up
             // successfully
             if (networksDeleted) {
                 if (!_configMgr.deleteAccountSpecificVirtualRanges(accountId)) {
@@ -1010,7 +1017,7 @@ public class AccountManagerImpl implements AccountManager, AccountService, Manag
         }
 
         // Account that manages project(s) can't be removed
-        List<Long> managedProjectIds = _projectAccountDao.listAdministratedProjects(accountId);
+        List<Long> managedProjectIds = _projectAccountDao.listAdministratedProjectIds(accountId);
         if (!managedProjectIds.isEmpty()) {
             StringBuilder projectIds = new StringBuilder();
             for (Long projectId : managedProjectIds) {