CFP Board Censures Improper CFP® Professional Conduct

WASHINGTON, Aug. 28, 2012 /PRNewswire-USNewswire/ -- Certified Financial Planner Board of Standards, Inc. (CFP Board) announced today public disciplinary actions against the following individuals' right to use the CFP^® certification marks, effective immediately or on the date noted in each case. This release contains disciplinary actions relating to 19 CFP^® professionals. The 19 disciplinary actions include 8 revocations, 4 suspensions, 3 interim suspensions and 4 letters of admonition. 

Public disciplinary actions taken by CFP Board, in order of increasing severity, include letters of admonition, suspensions and permanent revocations. The basis for each decision can be found in a Disciplinary Action Report below and on CFP Board's Web site. The public may check on an individual's disciplinary history and certification status with CFP Board at www.CFP.net/verify.

CFP Board's Standards of Professional Conduct, which includes the Code of Ethics and Professional Responsibility, Rules of Conduct and Financial Planning Practice Standards, sets forth the ethical standards for financial planners who hold the CFP^® certification. CFP Board enforces its ethical standards by investigating incidents of alleged unethical behavior, and following the procedures established in CFP Board's Disciplinary Rules and Procedures. In cases where violations are found, CFP Board may impose discipline ranging from a private censure or public letter of admonition to the suspension or revocation of the right to use the CFP^® marks. The Disciplinary Rules and Procedures set forth a fair process for investigating matters and imposing discipline where necessary.

CFP Board's enforcement process is a critical consumer protection. CFP^® professionals agree to abide by CFP Board's Standards of Professional Conduct, which sets forth their ethical responsibilities to the public, clients and employers. CFP^® professionals agree to act fairly and diligently when providing clients with financial planning advice and services, putting the clients' interests first.

These actions result from final decisions of CFP Board's Disciplinary and Ethics Commission ("Commission"). The Commission meets three times a year and reviews all cases on a case-by-case basis, taking into account the details specific to an individual case. While CFP Board has attempted to capture the details relevant to each decision, the summary nature of these releases may omit certain details affecting the decision. Accordingly, the decisions and/or rationale described in the releases may not apply to other cases reviewed by the Commission or reflect the Commission's future interpretation or application of the Standards of Professional Conduct.

LETTERS OF ADMONITION

CALIFORNIA

David B. Hooks, CFP^® (Camarillo): In June 2012, following a hearing by CFP Board's Disciplinary and Ethics Commission ("Commission"), CFP Board issued a Letter of Admonition to David B. Hooks.  This discipline followed the Commission's determination that Mr. Hooks: 1) altered the date on a check writing form and represented it to his firm as an originally signed and dated document; and 2) had co-trustee clients sign a blank wire transfer form, in violation of firm policy, Financial Industry Regulatory Authority, Inc. ("FINRA" formerly known as the National Association of Securities Dealers "NASD") Rule 2010 and NASD Rule 3110(a). The Commission determined that Mr. Hooks' conduct violated Rules 4.3, 4.4, 5.1 and 6.5 of CFP Board's Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures.  Accordingly, the Commission admonished Mr. Hooks with regard to the above-mentioned conduct. 

OHIO

Paul T. McCormack, CFP^® (Beachwood): In June 2012, following a hearing by CFP Board's Disciplinary and Ethics Commission ("Commission"), CFP Board issued a Letter of Admonition to Paul T. McCormack.  This discipline followed the Commission's determination that Mr. McCormack signed a client's initials on an annuity replacement notice on two occasions.  The Commission determined that Mr. McCormack's conduct violated Rules 4.1, 4.3, 4.4, 5.1 and 6.5 of CFP Board's Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures.  Accordingly, the Commission admonished Mr. McCormack with regard to the above-mentioned conduct. 

SOUTH CAROLINA

Emmet Martin, CFP^® (Greenville):  In June 2012, following a hearing by CFP Board's Disciplinary and Ethics Commission ("Commission"), CFP Board issued a Letter of Admonition to Emmet Martin.  This discipline followed the Commission's determination that Mr. Martin: 1) failed to disclose outside business activities to his firm; 2) sold fixed-indexed annuities outside of his firm, in violation of firm policy and Financial Industry Regulatory Authority, Inc. Rule 2010; and 3) allowed two employees under his supervision to sell fixed-indexed annuities outside of his firm.  The Commission determined that Mr. Martin's conduct violated Rules 4.3, 4.4, 4.6, 5.1 and 6.5 of CFP Board's Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures.  Accordingly, the Commission admonished Mr. Martin with regard to the above-mentioned conduct. 

TEXAS

Lee A. Przybyla, CFP^® (San Antonio): In June 2012, following a hearing by CFP Board's Disciplinary and Ethics Commission ("Commission"), CFP Board issued a Letter of Admonition to Lee A. Przybyla.  This discipline followed the Commission's determination that Ms. Przybyla filed for Chapter 7 Bankruptcy in 1995 and 2009, demonstrating an inability to manage her personal finances. The Commission determined that Ms. Przybyla's conduct violated Rule 6.5 of CFP Board's Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures.  Accordingly, the Commission admonished Ms. Przybyla with regard to the above-mentioned conduct. 

INTERIM SUSPENSIONS

ALABAMA

Henry E. Walker, Jr. (Helena): In June 2012, CFP Board issued Henry E. Walker, Jr. an interim suspension of his right to use the CFP^® certification marks.  CFP Board discovered that Mr. Walker entered into a Letter of Acceptance, Waiver and Consent with the Financial Industry Regulatory Authority, Inc. ("FINRA") in April 2012 wherein he consented to a permanent bar from association with any FINRA member in any capacity.  Pursuant to Article 5.7 of the Disciplinary Rules and Procedures, CFP Board issued an Automatic Interim Suspension because FINRA permanently barred Mr. Walker from association with any FINRA member in any capacity.  Under the interim suspension order, Mr. Walker's right to use the CFP^® certification marks is suspended pending CFP Board's completed investigation, and possible further disciplinary proceedings.  The interim suspension order became effective on June 1, 2012. 

UTAH

Gregory N. Peterson (Orem):  In August 2012, CFP Board issued Gregory N. Peterson an interim suspension of his right to use the CFP^® certification marks.  CFP Board initiated the interim suspension proceedings after the State of Utah charged Mr. Peterson with twenty-three felony counts and two misdemeanor counts in the 3^rd District Court for the County of Salt Lake, State of Utah in July 2012.  The crimes alleged are Counts 1 and 13: Aggravated Kidnapping; Count 2: Forcible Sodomy; Counts 3-5, 14-16 and 24: Object Rape; Counts 6-8: Rape; Counts 9-11, 17-20, 23 and 25: Forcible Sexual Abuse; Count 12: Assault; Count 21: Burglary; and Count 22: Sexual Battery.  Mr. Peterson failed to respond to CFP Board's Order to Show Cause within 20 calendar days of the date of service, as required by Article 5.3 of CFP Board's Disciplinary Rules and Procedures ("Disciplinary Rules").  Accordingly, pursuant to Article 5.4 of the Disciplinary Rules, the allegations set forth in the Order to Show Cause were deemed admitted, and CFP Board issued an interim suspension order to Mr. Peterson.  Under the interim suspension order, Mr. Peterson's right to use the CFP^® certification marks is suspended pending CFP Board's completed investigation, and possible further disciplinary proceedings. The interim suspension order became effective on August 10, 2012. 

VIRGINIA

John R. Graves (Fredericksburg): In June 2012, CFP Board issued John R. Graves an interim suspension of his right to use the CFP^® certification marks.  CFP Board discovered that Mr. Graves was convicted of ten criminal counts of wire fraud, mail fraud, conspiracy to commit wire and mail fraud, Investment Advisor Act fraud, and false statements in the United States District Court for the Eastern District of Virginia, Richmond Division.  Each count may subject Mr. Graves to more than one year imprisonment and is considered a felony.  Pursuant to Article 5.7 of the Disciplinary Rules and Procedures, CFP Board issued an Automatic Interim Suspension because it found that Mr. Graves had been convicted of a felony.  Under the interim suspension order, Mr. Graves' right to use the CFP^® certification marks is suspended pending CFP Board's completed investigation, and possible further disciplinary proceedings.  The interim suspension order became effective on June 1, 2012. 

SUSPENSIONS

CALIFORNIA

Fielder J. Mattox (Cardiff): In June 2012, following a hearing by CFP Board's Disciplinary and Ethics Commission ("Commission"), CFP Board issued an order suspending Fielder J. Mattox's right to use the CFP^® certification marks for one year.  The suspension followed the Commission's determination that Mr. Mattox: 1) filed for Chapter 7 Bankruptcy in 2010; 2) failed to ensure that all documents related to his clients were complete prior to obtaining the client's signature, as required by firm policy; and 3) failed to ensure that his assistant processed client documents in accordance with firm policy.  The Commission determined that Mr. Mattox's conduct violated Rules 4.4, 4.6, 5.1 and 6.5 of CFP Board's Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures ("Disciplinary Rules"). In accordance with Article 4.3 of the Disciplinary Rules, the Commission suspended Mr. Mattox's right to use the CFP^® certification marks for one year.  Mr. Mattox's suspension is effective from August 20, 2012, to August 20, 2013.

FLORIDA

Michael Hanke (Lutz): In December 2011, following a hearing by CFP Board's Disciplinary and Ethics Commission ("Commission"), CFP Board issued an order suspending Mr. Hanke's right to use the CFP^® certification marks for one year. The suspension followed the Commission's determination that Mr. Hanke: 1) sent email correspondence from his personal email account to clients on two separate occasions in which he guaranteed their account against loss, in violation of National Association of Securities Dealers ("NASD", now known as the Financial Industry Regulatory Authority, Inc. "FINRA") NASD Conduct Rules 2330(e) and 2110; 2) entered into a FINRA Acceptance, Waiver and Consent wherein he consented to a $2,500 fine and a 10-day suspension; 3) was barred from applying for registration as a sales person for a period of two years by the State of Illinois; and 4) failed to disclose the FINRA suspension to CFP Board within 10 calendar days. The Commission determined that Mr. Hanke's conduct violated Rules 201, 606(a), 606(b) and 607 of CFP Board's Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Articles 3(a), 3(d) and 3(e) of CFP Board's Disciplinary Rules and Procedures ("Disciplinary Rules").  In accordance with Article 4.3 of the Disciplinary Rules, the Commission suspended Mr. Hanke's right to use the CFP^® certification marks for one year.  Mr. Hanke's suspension is effective from December 14, 2011 to December 14, 2012.

PENNSYLVANIA

Gary J. Siano (Downingtown):  In June 2012, following a hearing by CFP Board's Disciplinary and Ethics Commission ("Commission"), CFP Board issued an order suspending Gary J. Siano's right to use the CFP^® certification marks for one year and one day.  The suspension followed the Commission's determination that Mr. Siano: 1) signed a client's name on account documents without proper authorization, which resulted in termination by his employer; and 2) failed to disclose that he was a respondent in a National Association of Securities Dealers arbitration on two CFP Board Renewal Applications. The Commission determined that Mr. Siano's conduct violated Rules 102, 201, 406, 606(a), 606(b), 607, and 612 of CFP Board's Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Articles 3(a) and 3(g) of CFP Board's Disciplinary Rules and Procedures ("Disciplinary Rules").  In accordance with Article 4.3 of the Disciplinary Rules, the Commission suspended Mr. Siano's right to use the CFP^® certification marks for one year and one day, pursuant to.  Mr. Siano's suspension is effective from August 20, 2012, to August 21, 2013.

TEXAS

Brian W. Armstrong (Cleburne): In June 2012, following a hearing by CFP Board's Disciplinary and Ethics Commission ("Commission"), CFP Board issued an order suspending Brian W. Armstrong's right to use the CFP^® certification marks for two years.  This discipline followed the Commission's determination that Mr. Armstrong: 1) sent anonymous letters to his former employer's clients falsely identifying himself as a former compliance officer with his former employer's broker-dealer; 2) denied, under oath, any involvement in writing the anonymous letters during deposition testimony, but later admitted that he answered falsely under oath and knew the answers were false when he provided the original testimony; and 3) violated the terms of a court order, resulting in a contempt of court order, three-day jail term and $500 fine.  The Commission determined that Mr. Armstrong's conduct violated Rules 102, 201, 602, 606(b) and 607 of CFP Board's Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures ("Disciplinary Rules").  In accordance with Article 4.3 of the Disciplinary Rules, the Commission suspended Mr. Armstrong's right to use the CFP^® certification marks for two years.  Mr. Armstrong's suspension is effective from August 20, 2012, to August 20, 2014.

REVOCATIONS

CALIFORNIA

Michael R. Frager (La Jolla):  In June 2012, following a hearing by CFP Board's Disciplinary and Ethics Commission ("Commission"), CFP Board issued an order permanently revoking Michael R. Frager's right to use the CFP^® certification marks. This discipline followed the Commission's determination that Mr. Frager filed for Chapter 7 Bankruptcy in 1995 and 2011. The Commission determined that Mr. Frager's conduct violated Rule 607 of CFP Board's Code of Ethics and Professional Responsibility and Rule 6.5 of the Rules of Conduct, providing grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures ("Disciplinary Rules").  In accordance with Article 4.4 of the Disciplinary Rules, the Commission permanently revoked Mr. Frager's right to use the CFP^® certification marks. 

FLORIDA

Thomas J. Gregory (Maitland): In December 2011, CFP Board issued an order permanently revoking Mr. Gregory's right to use the CFP^® certification marks.  This discipline followed CFP Board's investigation of allegations that Mr. Gregory: 1) misrepresented that he completed a continuing education ("CE") course when he allowed an individual to improperly assist him in the completion of the course; 2) was terminated by his broker-dealer for misrepresenting that he completed the CE course; 3) entered into a Financial Industry Regulatory Authority, Inc. ("FINRA" formerly known as the National Association of Securities Dealers "NASD") Letter of Acceptance Waiver and Consent wherein he consented to a one-month suspension from association with any FINRA member for a violations of NASD Rule 2110; and 4) failed to notify CFP Board of the change in contact information due to his termination.  CFP Board's Complaint alleged that Mr. Gregory's conduct violated Rules 102, 406, 606(a), 606(b) and 607 of CFP Board's Code of Ethics and Professional Responsibility and Rules 6.3 and 6.5 of the Rules of Conduct, providing grounds for discipline pursuant to Articles 3(a), 3(d), 3(e) and 3(f) of CFP Board's Disciplinary Rules and Procedures ("Disciplinary Rules").  Mr. Gregory failed to file an Answer to CFP Board's Complaint within 20 calendar days of the date of service, as required by Article 7.3 of CFP Board's Disciplinary Rules.  In accordance with Article 7.4 of the Disciplinary Rules, the allegations set forth in the Complaint were deemed admitted, and CFP Board issued an Order of Revocation.

Neal S. Smalbach (Palm Harbor): In June 2012, CFP Board issued an order permanently revoking Neal S. Smalbach's right to use the CFP^® certification marks.  This discipline followed CFP Board's investigation of allegations that Mr. Smalbach: 1) made fraudulent misrepresentations and material omissions when selling preferred shares in a private placement; 2) caused client information forms and private placement subscription agreements to be falsely completed so that customers would appear to be experienced and accredited investors for whom the investments were suitable; 3) caused customers to make unsuitable investments in a private placement; 4) violated ("NASD", formerly known as the Financial Industry Regulatory Authority, Inc. "FINRA") NASD and FINRA rules regarding maintenance of accurate books and records; and 5) impersonated a customer to effect the liquidation and transfer of a customer account, resulting in his termination by his employer. CFP Board's Complaint alleged that Mr. Smalbach's conduct violated Rules 102, 201, 406, 606(a), 606(b), 607, 701 and 704 of CFP Board's Code of Ethics and Professional Responsibility and Rules 4.3 and 6.5 of the Rules of Conduct, providing grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures ("Disciplinary Rules").  Mr. Smalbach failed to file an Answer to CFP Board's Complaint within 20 calendar days of the date of service, as required by Article 7.3 of CFP Board's Disciplinary Rules.  In accordance with Article 7.4 of the Disciplinary Rules, the allegations set forth in the Complaint were deemed admitted, and CFP Board issued an Order of Revocation.

MICHIGAN

Brett M. Plew (Kalamazoo): In June 2012, CFP Board issued an order permanently revoking Brett M. Plew's right to use the CFP^® certification marks.  This discipline followed CFP Board's investigation of allegations that Mr. Plew: 1) failed to follow a client's instructions to liquidate an account; 2) failed to supervise a subordinate with regard to the client's request; 3) made a personal guarantee to recover the client's losses in violation of National Association of Securities Dealers ("NASD", formerly known as the Financial Industry Regulatory Authority, Inc. "FINRA") NASD Rules 2330(e) and 2110; 4) was terminated by his employer; and 5) signed a FINRA Letter of Acceptance, Waiver and Consent wherein he consented to a $5,000 fine and suspension from association with any FINRA member in any capacity for a period of 20 business days.  CFP Board's Complaint alleged that Mr. Plew's conduct violated Rules 201, 406, 606(a), 607 and 705 of CFP Board's Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures ("Disciplinary Rules").  Mr. Plew failed to file an Answer to CFP Board's Complaint within 20 calendar days of the date of service, as required by Article 7.3 of CFP Board's Disciplinary Rules.  In accordance with Article 7.4 of the Disciplinary Rules, the allegations set forth in the Complaint were deemed admitted, and CFP Board issued an Order of Revocation.

MINNESOTA

Bruce D. Workman (Hamel): In June 2012, CFP Board issued an order permanently revoking Bruce D. Workman's right to use the CFP^® certification marks.  This discipline followed CFP Board's investigation of allegations that Mr. Workman: 1) engaged in outside business activities for compensation and failed to provide prompt written notice to his member firm; 2) recommended that his clients purchase unsuitable private placements; and 3) failed to report his Financial Industry Regulatory Authority, Inc. suspension within 10 days. CFP Board's Complaint alleged that Mr. Workman's conduct violated Rules 201, 202, 406, 606(a), 606(b), 607, and 703 of CFP Board's Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Articles 3(a) and 3(e) of CFP Board's Disciplinary Rules and Procedures ("Disciplinary Rules").  Mr. Workman failed to file an Answer to CFP Board's Complaint within 20 calendar days of the date of service, as required by Article 7.3 of CFP Board's Disciplinary Rules.  In accordance with Article 7.4 of the Disciplinary Rules, the allegations set forth in the Complaint were deemed admitted, and CFP Board issued an Order of Revocation.

NEW JERSEY

Rebecca A. Huntley (West Long Branch):  In June 2012, CFP Board issued an order permanently revoking Rebecca A. Huntley's right to use the CFP^® certification marks.  This discipline followed CFP Board's investigation of allegations that Ms. Huntley: 1) demonstrated an inability to manage her personal finances by filing for Chapter 13 Bankruptcy in 2009 and Chapter 7 Bankruptcy in 2011; and 2) failed to submit a response to CFP Board's Notice of Investigation ("NOI") and 2^nd NOI.  CFP Board's Complaint alleged that Ms. Huntley's conduct violated Rules 6.1 and 6.5 of CFP Board's Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures ("Disciplinary Rules").  Ms. Huntley failed to file an Answer to CFP Board's Complaint within 20 calendar days of the date of service, as required by Article 7.3 of CFP Board's Disciplinary Rules.  In accordance with Article 7.4 of the Disciplinary Rules, the allegations set forth in the Complaint were deemed admitted, and CFP Board issued an Order of Revocation.

TENNESSEE

Gala Gorman (Brentwood):  In June 2012, following a hearing by CFP Board's Disciplinary and Ethics Commission ("Commission"), CFP Board issued an order permanently revoking Gala Gorman's right to use the CFP^® certification marks. This discipline followed CFP Board's investigation of allegations that Ms. Gorman filed for Chapter 7 Bankruptcy in 2004 and Chapter 13 Bankruptcy in 2009.  The Commission determined that Ms. Gorman's conduct violated Rule 607 of CFP Board's Code of Ethics and Professional Responsibility and Rule 6.5 of the Rules of Conduct, providing grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures ("Disciplinary Rules").  In accordance with Article 4.4 of the Disciplinary Rules, the Commission permanently revoked Ms. Gorman's right to use the CFP^® certification marks. 

VIRGINIA

James A. Avery, Jr. (Mechanicsville): In June 2012, following a hearing by CFP Board's Disciplinary and Ethics Commission ("Commission"), CFP Board issued an order permanently revoking James A. Avery, Jr.'s right to use the CFP^® certification marks.  This discipline followed the Commission's determination that Mr. Avery: 1) was the subject of a 2006 IRS Tax Lien; 2) was the subject of a 2004 Insurance License Suspension; 3) filed a 2004 Chapter 13 Bankruptcy; 4) filed a 2002 Chapter 13 Bankruptcy; 5) filed a 1998 Chapter 13 Bankruptcy that was subsequently converted to Chapter 7 Bankruptcy filing; 6) failed to notify CFP Board of a DUI conviction within the required 10 days; and 7) failed to file and answer to CFP Board's Notice of Investigation ("NOI") and 2^nd NOI.  The Commission determined that Mr. Avery's conduct violated Rule 607 of CFP Board's Code of Ethics and Professional Responsibility and Rules 6.1, 6.4 and 6.5 of the Rules of Conduct, providing grounds for discipline pursuant to Articles 3(a), 3(c) and 3(f) of CFP Board's Disciplinary Rules and Procedures ("Disciplinary Rules").  In accordance with Article 4.4 of the Disciplinary Rules, the Commission permanently revoked Mr. Avery's right to use the CFP^® certification marks.

ABOUT CFP BOARD

The mission of Certified Financial Planner Board of Standards, Inc. is to benefit the public by granting the CFP^® certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning. The Board of Directors, in furthering CFP Board's mission, acts on behalf of the public, CFP^® professionals and other stakeholders. CFP Board owns the certification marks CFP^®, Certified Financial Planner™, CFP^® (with plaque design) and CFP^® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.  CFP Board currently authorizes nearly 67,000 individuals to use these marks in the U.S.

SOURCE Certified Financial Planner Board of Standards, Inc.

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED