CFP Board Censures Improper CFP® Professional Conduct
WASHINGTON, April 24, 2015 /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. Public disciplinary actions taken by CFP Board, in order of increasing severity, include letters of admonition, suspensions and permanent revocations.
This release contains information about disciplinary actions relating to 23 CFP® professionals. Of these actions, there were 3 administrative revocations, 9 suspensions, 4 interim suspensions and 7 letters of admonition.
The basis for each decision can be found in a Disciplinary Action Report below and on CFP Board's website. The public may check on an individual's disciplinary history and certification status with CFP Board at www.CFP.net/verify.
CFP Board's enforcement process is a critical consumer protection. CFP® professionals agree to abide by CFP Board's Standards of Professional Conduct (Standards), which includes the Code of Ethics and Professional Responsibility (Code of Ethics), Rules of Conduct and Financial Planning Practice Standards (Practice Standards). The Standards set 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. 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. CFP Board's Disciplinary Rules and Procedures (Disciplinary Rules) set forth the process for investigating matters and imposing discipline where violations have been found.
The actions in this release result from final decisions of the Disciplinary and Ethics Commission (Commission). The Commission meets three times a year to provide a fair, unbiased review of any matter in which a CFP® professional is alleged to have committed violations of the Standards.
The Commission functions in accordance with the Disciplinary Rules and reviews all matters 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.
STATE |
NAME |
LOCATION |
DISCIPLINE |
Arizona |
Mark E. Rauguth, CFP® |
Mesa |
Public Letter of Admonition |
California |
Darin Gibson |
Irvine |
Public Letter of Admonition |
California |
David L. Gabai |
West Hills |
Interim Suspension |
Florida |
Joseph M. Browne |
Jacksonville Beach |
Administrative Revocation |
Florida |
Jason K. Chepenik, CFP® |
Winter Park |
Public Letter of Admonition |
Florida |
Duncan C. DeWahl, CFP® |
Maitland |
Public Letter of Admonition |
Florida |
Jamie D. Pope |
Winter Park |
Interim Suspension |
Florida |
Ronald W. Vaught |
Melbourne |
Interim Suspension |
Illinois |
Sue Ann Appleby, CFP® |
Belvidere |
Public Letter of Admonition |
Illinois |
Phillip C. Coad, CFP® |
Mount Prospect |
Public Letter of Admonition |
Kentucky |
Scott A. Brooks |
Edgewood |
Suspension |
Kentucky |
Roy Dwane Johnson |
Raceland |
Suspension |
Massachusetts |
Swan S. Shen |
Andover |
Suspension |
Minnesota |
Kevin M. Nevin |
St. Louis Park |
Suspension |
Minnesota |
F. Christopher Piatt |
Bloomington |
Interim Suspension |
Nevada |
Jacqueline H. Thornhill |
Las Vegas |
Suspension |
New York |
Robert A. Magliulo |
Manhasset |
Suspension |
North Carolina |
Don G. Stamas, CFP® |
Charlotte |
Public Letter of Admonition |
North Carolina |
Michael T. Sullivan |
Mooresville |
Administrative Revocation |
Rhode Island |
Charles E. O'Hara, IV |
Newport |
Suspension |
South Carolina |
Brett Fellows |
Mt. Pleasant |
Suspension |
Washington |
Candy J. Lee |
Seattle |
Suspension |
Wisconsin |
Michael A. Zolondek |
Mauston |
Administrative Revocation |
LETTERS OF ADMONITION
ARIZONA
Mark E. Rauguth, CFP® (Mesa): In November 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order stating that this Public Letter of Admonition be issued to Mr. Rauguth. This discipline followed Mr. Rauguth's entry into a settlement agreement with CFP Board in which he consented to CFP Board's findings that he improperly used his broker-dealer's signature guarantee stamp for non-firm customers and failed to maintain photocopies of the guaranteed documents. Mr. Rauguth's conduct resulted in a suspension and fine from the Financial Industry Regulatory Authority, Inc., which he failed to disclose to CFP Board in writing within 30 days as required by Article 13.2 of CFP Board's Disciplinary Rules and Procedures. Mr. Rauguth consented to violations of Rules 201, 406, 606(a), 606(b) and 607 of CFP Board's Code of Ethics and Rules 5.1, 6.1 and 6.5 of CFP Board's Rules of Conduct, providing grounds for discipline pursuant to Articles 3(a), 3(d) and 3(e) of CFP Board's Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. Rauguth with regard to the above-mentioned conduct.
CALIFORNIA
Darin L. Gibson, CFP® (Irvine): In December 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order stating that this Public Letter of Admonition be issued to Mr. Gibson, a former CFP® professional. This discipline followed the Commission's determination that Mr. Gibson failed to mutually agree with a client upon the services to be provided when he provided material elements of financial planning but entered into an agreement that indicated Mr. Gibson would provide only investment analysis. The Commission determined that Mr. Gibson's conduct violated Rule 1.3 of CFP Board's Rules of Conduct and Practice Standard 100-1, providing grounds for discipline pursuant to Articles 3(a) and 3(b) of CFP Board's Disciplinary Rules and Procedures. Mr. Gibson's certification is currently lapsed, however, the Commission admonished Mr. Gibson with regard to the above-mentioned conduct.
FLORIDA
Jason K. Chepenik, CFP® (Winter Park): In December 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order stating that this Public Letter of Admonition be issued to Mr. Chepenik. This discipline followed Mr. Chepenik's entry into a settlement agreement with CFP Board in which he consented to CFP Board's findings that he: 1) was convicted of DUI in June 2008; 2) failed to disclose the DUI conviction to CFP Board within 10 days in violation of Article 12.2 of CFP Board's Disciplinary Rules and Procedures in effect at that time; 3) failed to disclose his June 2008 DUI conviction on his September 2008 CFP® certification renewal application; 4) during the period from December 2010 through October 2011, engaged in investment advisory business in Florida without being properly registered, in violation of Florida Statutes; 5) failed to disclose Florida's Office of Financial Regulation's Final Order to Florida's Department of Financial Services within 30 days, which resulted in a January 2013 Consent Order requiring him to pay a $1,000 fine; 6) was convicted for Reckless Driving in September 2013; 7) failed to report his September 2013 Reckless Driving conviction to CFP Board within 30 days as required by Article 13.2 of the Disciplinary Rules and Procedures; and 8) failed to disclose his June 2009 DUI conviction on his September 2010 and October 2012 Renewal Applications. Mr. Chepenik consented to violations of Rules 606(b), 607 and 612 of CFP Board's Code of Ethics and Rules 4.3, 4.4, 6.1, 6.2 and 6.5 of CFP Board's Rules of Conduct, providing grounds for discipline pursuant to Articles 3(a), 3(c), 3(e) and 3(g) of CFP Board's Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. Chepenik with regard to the above-mentioned conduct.
Duncan C. DeWahl, CFP® (Maitland): In December 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order stating that this Public Letter of Admonition be issued to Mr. DeWahl. This discipline followed Mr. DeWahl's entry into a settlement agreement with CFP Board in which he consented to CFP Board's findings that he signed the names of six clients on suitability forms and failed to report his Financial Industry Regulatory Authority, Inc. suspension to CFP Board, in violation of Article 13.2 of CFP Board's Disciplinary Rules and Procedures. Mr. DeWahl consented to violations of Rules 1.4, 4.3, 4.4, 5.1 and 6.5 of CFP Board's Rules of Conduct, providing grounds for discipline pursuant to Articles 3(a), 3(d) and 3(e) of CFP Board's Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. DeWahl with regard to the above-mentioned conduct.
ILLINOIS
Sue Ann Appleby, CFP® (Belvidere): In November 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order stating that this Public Letter of Admonition be issued to Ms. Appleby. This discipline followed Ms. Appleby's entry into a settlement agreement with CFP Board in which she consented to CFP Board's findings that she allowed clients to sign incomplete electronic fund transfer forms, in violation of her firm's policy and Financial Industry Regulatory Authority, Inc. Rule 2010. Ms. Appleby consented to violations of Rules 4.3, 4.4, 5.1 and 6.5 of CFP Board's Rules of Conduct, providing grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures. Accordingly, the Commission admonished Ms. Appleby with regard to the above-mentioned conduct.
Phillip C. Coad, CFP® (Mount Prospect): In December 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order stating that this Public Letter of Admonition be issued to Mr. Coad. This discipline followed Mr. Coad's entry into a settlement agreement with CFP Board in which he consented to CFP Board's findings that he misrepresented his compensation on CFP Board's "Find a CFP® Professional" search tool. The Terminology Section of CFP Board's Standards of Professional Conduct (Standards) states that compensation is "any non-trivial economic benefit" that a "[CFP® professional] or related-party receives or is entitled to receive for providing professional activities." Further, under the definition of "fee-only" in the Terminology Section, a CFP® professional may describe "his or her practice as 'fee-only' if, and only if, all of the [CFP® professional]'s compensation from all of his or her client work comes exclusively from the clients in the form of fixed, flat, hourly, percentage or performance-based fees." CFP Board's definitions of "compensation" and "fee-only" prohibit a CFP® professional from referring to his or her practice as "fee-only" if any of the compensation received by the CFP® professional and any related-party is comprised of compensation other than the types of fees identified in CFP Board's definition of "fee-only." Mr. Coad's description of his compensation as "fee-only" was incorrect because he was entitled to receive commissions as compensation from insurance sales and his employer was also entitled to receive commissions from the sale of insurance products through its representatives. Mr. Coad removed "fee-only" from his search profile after receiving CFP Board's Notice of Investigation. Mr. Coad consented to violations of Rules 2.1, 2.2(a) and 6.5 of CFP Board's Rules of Conduct, providing grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. Coad with regard to the above-mentioned conduct.
NORTH CAROLINA
Don G. Stamas, CFP® (Charlotte): In November 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order stating that this Public Letter of Admonition be issued to Mr. Stamas. This discipline followed the Mr. Stamas' entry into a settlement agreement with CFP Board in which he consented to CFP Board's findings that he represented his compensation method as "fee-only" on the "Find a CFP® Professional" search tool. The Terminology Section of CFP Board's Standards of Professional Conduct (Standards) states that compensation is "any non-trivial economic benefit" that a "[CFP® professional] or related-party receives or is entitled to receive for providing professional activities." Further, under the definition of "fee-only" in the Terminology Section, a CFP® professional may describe "his or her practice as 'fee-only' if, and only if, all of the [CFP® professional]'s compensation from all of his or her client work comes exclusively from the clients in the form of fixed, flat, hourly, percentage or performance-based fees." CFP Board's definitions of "compensation" and "fee-only" prohibit a CFP® professional from referring to his or her practice as "fee-only" if any of the compensation received by the CFP® professional and any related-party is comprised of compensation other than the types of fees identified in CFP Board's definition of "fee-only." Mr. Stamas's description of his compensation as fee-only was incorrect because he received commissions for selling insurance products. Mr. Stamas removed "fee-only" from his search profile after receiving CFP Board's Notice of Investigation. Mr. Stamas consented to violations of Rules 2.1, 2.2(a) and 6.5 of CFP Board's Rules of Conduct, providing grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. Stamas with regard to the above-mentioned conduct.
INTERIM SUSPENSION
CALIFORNIA
David L. Gabai (West Hills): In March 2015, CFP Board issued Mr. Gabai an automatic interim suspension of his CFP® certification. CFP Board issued an interim suspension after discovering that Mr. Gabai entered into a Letter of Acceptance, Waiver and Consent ("AWC") with the Financial Industry Regulatory Authority, Inc. ("FINRA"). In the AWC, Mr. Gabai accepted and consented to, without admitting or denying, FINRA's findings that he utilized deceptive, fraudulent, and manipulative strategies involving the purchase and sale of a stock of which he held a significant personal stake. Mr. Gabai's conduct was in willful violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, FINRA Rules 2010 and 2020 and NASD Rules 3310 and IM-3310. In the AWC, FINRA permanently barred Mr. Gabai from associating in any capacity with any FINRA member firm. Pursuant to Article 5.7 of the Disciplinary Rules and Procedures, "[a]n interim suspension shall immediately be issued without a hearing when CFP Board Counsel receives evidence of a conviction or a professional discipline in accordance with Article 13.1 for…revocation of a financial professional license (securities, insurance, accounting or bank-related license)." Under the interim suspension order, Mr. Gabai's CFP® certification is suspended pending CFP Board's completed investigation and possible further disciplinary proceedings. The interim suspension order became effective on March 9, 2015.
FLORIDA
Jamie D. Pope (Winter Park): In November 2014, CFP Board issued Mr. Pope an automatic interim suspension of his right to use the CFP® certification marks. CFP Board issued an interim suspension after discovering that the Financial Industry Regulatory Authority, Inc. (FINRA) and Mr. Pope entered into Letter of Acceptance, Waiver and Consent, permanently barring him from associating with any FINRA member firm in any capacity. The FINRA bar resulted from Mr. Pope's receipt of approximately $60,000 from a client for the purpose of investing in Mr. Pope's outside business activities. Rather than using the funds for the client's intended purpose, Mr. Pope used a portion of the funds for his own use and benefit. Pursuant to Article 5.7 of the Disciplinary Rules and Procedures, "[a]n interim suspension shall immediately be issued without a hearing when CFP Board Counsel receives evidence of a conviction or a professional discipline in accordance with Article 13.1 for…revocation of a financial professional license (securities, insurance, accounting or bank-related license)." Under the interim suspension order, Mr. Pope's right to use the CFP® marks is suspended pending CFP Board's completed investigation and possible further disciplinary proceedings. The interim suspension order became effective on November 13, 2014.
Ronald W. Vaught (Melbourne): In November 2014, CFP Board issued Mr. Vaught an automatic interim suspension of his right to use the CFP® certification marks. CFP Board issued an interim suspension after discovering that the Financial Industry Regulatory Authority, Inc. (FINRA) permanently barred Mr. Vaught from acting in all capacities for any FINRA member. Mr. Vaught consented to findings that he: 1) failed to notify his firm that a client had named him successor trustee and beneficiary of a client's trust; 2) failed to notify and receive approval from his firm prior to acting as trustee of the trust; 3) falsified an Automated Clearing House transfer request form, which allowed him to transfer all of the trust's assets to his checking account; and 4) improperly used a client's funds. Pursuant to Article 5.7 of the Disciplinary Rules and Procedures, "[a]n interim suspension shall immediately be issued without a hearing when CFP Board Counsel receives evidence of a conviction or a professional discipline in accordance with Article 13.1 for…revocation of a financial professional license (securities, insurance, accounting or bank-related license)." Under the interim suspension order, Mr. Vaught's right to use the CFP® marks is suspended pending CFP Board's completed investigation and possible further disciplinary proceedings. The interim suspension order became effective on November 25, 2014.
MINNESOTA
F. Christopher Piatt (Bloomington): In November 2014, CFP Board issued Mr. Piatt an automatic interim suspension of his right to use the CFP® certification marks. CFP Board issued an interim suspension after discovering that Mr. Piatt had consented to a permanent bar from association in any capacity with any Financial Industry Regulatory Authority, Inc. (FINRA) member. The FINRA bar stemmed from Mr. Piatt's completion of a continuing education course on behalf of another registered representative and his subsequent misstatements to FINRA and his firm in which he denied having completed the continuing education course on behalf of another registered representative. Pursuant to Article 5.7 of the Disciplinary Rules and Procedures, "[a]n interim suspension shall immediately be issued without a hearing when CFP Board Counsel receives evidence of a conviction or a professional discipline in accordance with Article 13.1 for…revocation of a financial professional license (securities, insurance, accounting or bank-related license)." Under the interim suspension order, Mr. Piatt's right to use the CFP® certification marks is suspended pending CFP Board's completed investigation. The interim suspension order became effective on November 3, 2014.
SUSPENSION
KENTUCKY
Scott A. Brooks (Edgewood): In December 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order suspending Mr. Brooks' right to use the CFP® certification marks for one year and one day. This discipline followed the Commission's findings that Mr. Brooks failed to 1) file federal income tax returns or pay federal income taxes for a 10-year period from 2000 through 2009, resulting in tax liens totaling nearly $1 million; 2) file state income tax returns or pay state income taxes from 2000 through 2008, resulting in a state tax lien in excess of $100,000; and 3) make timely updates to his Form U4 to report his federal and state tax liens, resulting in a 40-day suspension from associating with any Financial Industry Regulatory Authority, Inc. member firm in any capacity and a $5,000 fine. Mr. Brooks consented to violations of Rule 607 of CFP Board's Code of Ethics and 6.5 of CFP Board's Rules of Conduct, providing grounds for discipline under Articles 3(a) and 3(d) of CFP Board's Disciplinary Rules and Procedures. Mr. Brooks' suspension is effective from January 5, 2015 until January 6, 2016.
Roy Dwane Johnson (Raceland): In December 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order concerning Mr. Johnson, a former CFP® professional, suspending his right to use the CFP® certification marks for four years. This discipline followed the Commission's findings that Mr. Johnson misappropriated funds and submitted false records to his member firm regarding business expense reimbursement claims for personal expenditures over a period of more than five years. The Commission determined that Mr. Johnson's conduct violated Rules 102, 406 and 607 of CFP Board's Code of Ethics and Rules 5.1 and 6.5 of CFP Board's Rules of Conduct, providing grounds for discipline under Articles 3(a) and 3(d) of CFP Board's Disciplinary Rules and Procedures. Mr. Johnson's suspension is effective from January 5, 2015 until January 5, 2019.
MASSACHUSETTS
Swan S. Shen (Andover): In November 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order suspending Ms. Shen's right to use the CFP® certification marks for six months. This discipline followed Ms. Shen's entry into a settlement agreement with CFP Board in which she consented to CFP Board's findings that she: 1) altered a client's variable annuity checklist by adding fees to the signed form, whiting out the date, inserting a new date, and submitting the form to her firm representing the form as a newly executed, re-signed form (Altering a customer's signed document was a violation of her firm's policy and Ms. Shen was assessed a fine of $500 and issued a Letter of Concern.); 2) copied and pasted non-genuine signatures of four separate customers on three documents without the customers' knowledge or consent and presented the documents as originals for processing; and 3) created consolidated customer statements which were then provided to certain clients without firm pre-approval. Ms. Shen consented to violations of Rules 102, 201, 406, 606(b) and 607 of CFP Board's Code of Ethics and Rules 4.3, 4.4, 5.1 and 6.5 of CFP Board's Rules of Conduct, providing grounds for discipline pursuant to Articles 3(a) and 3(d) of CFP Board's Disciplinary Rules and Procedures. Ms. Shen's suspension is effective from November 20, 2014 to May 20, 2015.
MINNESOTA
Kevin M. Nevin (St. Louis Park): In November 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order concerning Mr. Nevin, a former CFP® professional, suspending his right to use the CFP® certification marks for one year. This discipline followed Mr. Nevin's entry into a settlement agreement with CFP Board in which he consented to CFP Board's finding that he failed to give his firm prior written notice of his clients' intended investments in three private placements. As a consequence, the firm never approved Mr. Nevin's participation in those transactions, did not record any of the transactions on its books and records and did not supervise his activity with respect to the transactions. Mr. Nevin violated National Association of Securities Dealers (now known as the Financial Industry Regulatory Authority, Inc., or FINRA) Conduct Rules 3040 and 2110 and FINRA suspended him for six months as a result of this misconduct. Mr. Nevin consented to violations of Rules 201, 406, 606(a), 606(b) and 607 of CFP Board's Code of Ethics, providing grounds for discipline pursuant to Articles 3(a), 3(d) and 3(e) of CFP Board's Disciplinary Rules and Procedures. Mr. Nevin's suspension is effective from November 20, 2014 to November 20, 2015.
NEVADA
Jacqueline H. Thornhill (Las Vegas): In November 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order suspending Ms. Thornhill's right to use the CFP® certification marks for three months. This discipline followed Ms. Thornhill's entry into a settlement agreement with CFP Board in which she consented to CFP Board's findings regarding a 2013 letter of Acceptance, Waiver and Consent ("AWC") from the Financial Industry Regulatory Authority, Inc. ("FINRA"). The FINRA AWC resulted in a 90-day suspension and stemmed from Ms. Thornhill's participation in private securities transactions for compensation without providing prior written notice to and obtaining prior approval from her firm, in violation of FINRA rules. Ms. Thornhill also failed to report the FINRA suspension to CFP Board within 30 days, in violation of Article 13.2 of CFP Board's Disciplinary Rules and Procedures. Ms. Thornhill consented to violations of Rules 5.1, 6.1 and 6.5 of CFP Board's Rules of Conduct, which provided grounds for discipline pursuant to Articles 3(a), 3(d) and 3(e) of CFP Board's Disciplinary Rules and Procedures. Ms. Thornhill's suspension is effective from November 20, 2014 until February 20, 2015.
NEW YORK
Robert A. Magliulo (Manhasset): In November 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order suspending Mr. Magliulo's right to use the CFP® certification marks for six months. This discipline followed Mr. Magliulo's entry into a settlement agreement with CFP Board in which he consented to CFP Board's finding that he improperly instructed his sales assistant to complete an online continuing education program on his behalf, in violation of Financial Industry Regulatory Authority, Inc. Rule 2010 and which resulted in Mr. Magliulo's firm terminating his employment. Mr. Magliulo consented to violations of Rules 5.1, 6.2 and 6.5 of CFP Board's Rules of Conduct, providing grounds for discipline pursuant to Articles 3(a) and 3(d) of CFP Board's Disciplinary Rules and Procedures. Mr. Magliulo's suspension is effective from November 20, 2014 to May 20, 2015.
RHODE ISLAND
Charles E. O'Hara (Newport): In November 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order suspending Mr. O'Hara's right to use the CFP® certification marks for one year and one day. This discipline followed Mr. O'Hara's entry into a settlement agreement with CFP Board in which he consented to CFP Board's finding that he: 1) recommended and sold $400,000 in REITs and partnership interests to a client; 2) solicited personal loans from clients; 3) borrowed $14,650 from clients in 2008, in violation of his firm's policies and procedures and National Association of Securities Dealers Conduct Rules 2370 and 2110; and 4) failed to request permission from his firm to borrow money from a client or disclose the loan to the firm. Mr. O'Hara consented to violations of Rules 201, 406 and 607 of CFP Board's Code of Ethics and 6.5 of CFP Board's Rules of Conduct, providing grounds for discipline pursuant to Articles 3(a) and 3(d) of CFP Board's Disciplinary Rules and Procedures. Mr. O'Hara's suspension is effective from November 20, 2014 to November 21, 2015.
SOUTH CAROLINA
Brett Fellows (Mt. Pleasant): In December 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order suspending Mr. Fellows' right to use the CFP® certification marks for one year and one day. This discipline followed Mr. Fellows' entry into a settlement agreement with CFP Board in which he consented to CFP Board's findings that he sent misleading letters to 55 clients indicating that the reason for them to sign and return enclosed forms was purely administrative, when in actuality he was requesting that the clients sign and return the forms to transfer their accounts to Mr. Fellows' new broker-dealer. Mr. Fellows did not have his firm's approval to send these letters. Mr. Fellow's consented to violations of Rules 1.4, 2.1, 2.2(c), 2.2(e), 4.1, 4.3, 4.4, 5.1 and 6.5 of CFP Board's Rules of Conduct, providing grounds for discipline pursuant to Article 3(a) of CFP Board's Disciplinary Rules and Procedures. Mr. Fellows' suspension is effective from December 10, 2014 to December 11, 2015.
WASHINGTON
Candy J. Lee (Seattle): In November 2014, following a review by CFP Board's Disciplinary and Ethics Commission, CFP Board issued an order concerning Ms. Lee, a former CFP® professional, suspending her right to use the CFP® certification marks for nine months. This discipline followed Ms. Lee's entry into a settlement agreement with CFP Board in which she consented to CFP Board's findings that she sold "C" shares to her clients not because they were suitable, but as a method of ensuring that she was paid for her advisory services, and failed to 1) enter into written advisory agreements with her "C" share advisory clients; 2) provide written disclosures required by Part 2 of Form ADV to her "C" share advisory clients; and 3) provide a complete description of the share class options and fees of mutual funds to her "C" share advisory clients; 4) ensure that salespersons were making suitable "C" share investment recommendations; 5) enforce the RIA Manual requirement of a written advisory agreement for the clients using "C" shares as an advisory fee; and 6) enforce the requirement of delivery of appropriate disclosure documents. Ms. Lee consented to violations of Rules 102, 201, 401(a), 406, 606(a), 606(b) and 607 of CFP Board's Code of Ethics and Rules 1.4, 2.1, 2.2(a), 4.1, 4.3, 4.4, 4.6, 5.1 and 6.5 of CFP Board's Rules of Conduct, providing grounds for discipline pursuant to Articles 3(a), 3(d) and 3(e) of CFP Board's Disciplinary Rules and Procedures. Ms. Lee's suspension is effective from November 20, 2014 to August 20, 2015.
REVOCATIONS
FLORIDA
Joseph M. Browne (Jacksonville Beach): In December 2014, CFP Board issued an order permanently revoking Mr. Browne's right to use the CFP® certification marks. This discipline followed Mr. Browne's failure to file an answer to CFP Board's Complaint within the required time period. CFP Board's Complaint alleged that Mr. Browne publicly misrepresented his compensation method as "fee-only" to clients and prospective clients on CFP Board's "Find a CFP® Professional" search tool because he is entitled to receive commissions as compensation for his individual insurance sales and his employer is compensated by commissions from the sale of insurance products. CFP Board's Complaint further alleged that Mr. Browne's conduct violated Rules 2.1, 2.2(a) and 6.5 of CFP Board's Rules of Conduct, providing grounds for discipline under Article 3(a) of the Disciplinary Rules and Procedures. Mr. Browne 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 and Procedures. In accordance with Article 7.4 of the Disciplinary Rules and Procedures, the allegations set forth in the Complaint were deemed admitted, and CFP Board issued an Administrative Order of Revocation. Mr. Browne's revocation was effective as of January 15, 2015.
NORTH CAROLINA
Michael T. Sullivan (Mooresville): In December 2014, CFP Board issued an order permanently revoking Mr. Sullivan's right to use the CFP® certification marks. This discipline followed Mr. Sullivan's failure to file an answer to CFP Board's Complaint within the required time period. CFP Board's Complaint alleged that Mr. Sullivan: 1) recommended and sold variable annuities to his clients that were unsuitable; 2) recommended and sold variable annuities that were not in the best interest of his clients; 3) caused his clients to pay both commissions and assets under management fees on a variable annuity; 4) provided the clients with financial planning services but failed to enter into a written agreement governing the financial planning services; and 5) allowed an investment advisor to make unsuitably risky investments in his financial planning clients' variable annuity. CFP Board's Complaint further alleged that Mr. Sullivan's conduct violated Rules 1.3, 1.4, 4.1, 4.4, 4.5, 4.6, and 6.5 of CFP Board's Rules of Conduct as well as Practice Standard 500-2, providing grounds for discipline under Articles 3(a) and 3(b) of the Disciplinary Rules and Procedures. Mr. Sullivan 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 and Procedures. In accordance with Article 7.4 of the Disciplinary Rules and Procedures, the allegations set forth in the Complaint were deemed admitted, and CFP Board issued an Administrative Order of Revocation. Mr. Sullivan's revocation was effective as of January 15, 2015.
WISCONSIN
Michael A. Zolondek (Mauston): In December 2014, CFP Board issued an order concerning Mr. Zolondek, a former CFP® professional, permanently revoking his right to use the CFP® certification marks. This discipline followed Mr. Zolondek's failure to file an answer to CFP Board's Complaint within the required time period. CFP Board's Complaint alleged that Mr. Zolondek, during the period of January 2008 through December 2008, helped employees or contractors cheat on Life Underwriter Training Course (LUTC) examinations, in violation of Rules 102, 201, 406, 606(a), 606(b), and 607 of the Code of Ethics. CFP Board's Complaint further alleged that during the period of January 2009 through June 2012, Mr. Zolondek: 1) helped employees or contractors cheat on LUTC examinations; 2) instructed at least three employees or contractors to sign and submit Proctor Affirmations for LUTC examinations that they did not proctor; 3) assisted a student over whom he had supervisory responsibility to cheat on an LUTC examination; and 4) failed to disclose the January 2014 revocation of his Wisconsin insurance licenses and the February 2014 Financial Industry Regulatory Authority, Inc. bar within 30 days as required by Article 13.2 of the Disciplinary Rules and Procedures, in violation of Rules 4.6. 5.1, 6.1, and 6.5 of the Rules of Conduct. Mr. Zolondek's conduct provided grounds for discipline under Articles 3(a), 3(d), 3(e) and 3(f) of the Disciplinary Rules and Procedures. Mr. Zolondek 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 and Procedures. In accordance with Article 7.4 of the Disciplinary Rules and Procedures, the allegations set forth in the Complaint were deemed admitted, and CFP Board issued an Administrative Order of Revocation. Mr. Zolondek's revocation was effective as of January 15, 2015.
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 more than 71,000 individuals to use these marks in the U.S.
SOURCE Certified Financial Planner Board of Standards, Inc.
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