CFP Board Imposes Public Sanctions on 17 Individuals

WASHINGTON, July 5, 2022 /PRNewswire/ -- Certified Financial Planner Board of Standards, Inc. (CFP Board) announced today public sanctions against 17 current or former CFP® professionals or candidates for CFP® certification, effective immediately or on the date noted in each case. Public sanctions taken by CFP Board, in order of increasing severity, include Public Censures, Suspensions, Temporary Bars, Permanent Bars and Revocations of the right to use the CFP® marks.

CFP Board's Enforcement Process

As part of their certification, CFP® professionals make a commitment to CFP Board to abide by CFP Board's Code of Ethics and Standards of Conduct (Code and Standards) or its predecessor, the Standards of Professional Conduct (Standards), which included the Code of Ethics and Professional Responsibility, Rules of Conduct and Financial Planning Practice Standards. Individuals on the pathway to CFP® certification make a commitment to abide by CFP Board's Pathway to CFP® Certification Agreement (Pathway Agreement). 

CFP Board's Procedural Rules set forth the process for investigating matters and imposing sanctions where violations have been found.

CFP Board enforces its ethical standards by investigating alleged violations and, where there is probable cause to believe there are grounds for sanction, presents a Complaint containing the alleged violations to CFP Board's Disciplinary and Ethics Commission (Commission). The Commission meets at least six times a year to review any matter in which CFP Board has alleged that a CFP® professional has violated CFP Board's Code and Standards or its predecessor Standards, or an individual pursuing initial CFP® certification has violated the Pathway Agreement. The Commission functions in accordance with the Procedural Rules and reviews all matters on a case-by-case basis, considering the details specific to an individual case. If the Commission determines there are grounds for sanction, then it may impose a sanction. Commission orders may be appealed by a Respondent or CFP Board pursuant to the Procedural Rules.

In certain circumstances, such as when a CFP® professional is in default due to failure to acknowledge receipt of a Notice of Investigation or file an Answer, CFP Board staff must deliver an Administrative Order of Suspension, Temporary Bar, Revocation or Permanent Bar. Administrative Orders are subject to appeal.

More information on CFP Board's enforcement process can be found at CFP.net/enforcement. In addition, at CFP.net/verify, CFP Board provides the public with:

• An Individual's CFP Board disciplinary history and CFP® certification status.
• Links to other sources of information about CFP® professionals that may be more recent or that may contain information that has not led to CFP Board discipline and does not appear on CFP Board's website. This information may include customer disputes, disciplinary actions taken by a regulator or employer, certain criminal matters and certain financial matters (such as bankruptcy proceedings and unpaid judgments or liens). 
• Links to the Financial Industry Regulatory Authority's (FINRA's) BrokerCheck and the U.S. Securities and Exchange Commission's (SEC's) Investment Adviser Public Disclosure databases for individuals who are subject to FINRA or SEC oversight. 

The Public Sanctions on 17 Individuals

A short summary of each sanction can be found below.

PUBLIC CENSURE

FLORIDA

Jennifer Todd Nash, CFP® (Tallahassee, Florida): In April 2022, the Disciplinary and Ethics Commission (Commission) and Ms. Nash entered into a Consent Order in which Ms. Nash agreed that CFP Board would issue a Public Censure. In the Consent Order, Ms. Nash consented to findings that she failed to timely pay taxes to the Internal Revenue Service (IRS) for eight years between 2010 and 2018, resulting in the IRS filing six federal tax liens totaling approximately $573,000. The Commission determined that Ms. Nash's conduct violated Rule 6.5 of the Rules of Conduct, which provides that a certificant shall not engage in conduct that reflects adversely on her integrity or fitness as a certificant, upon the CFP® marks or upon the profession. Because Ms. Nash had not yet established an installment agreement with the IRS, Ms. Nash agreed to perform additional remedial work in addition to the Public Censure. Ms. Nash is required to certify to CFP Board every six months for three years her progress towards resolution of the tax liens. Any failure to comply with the certification requirement shall be considered a default, as defined by Article 11.4 of the Procedural Rules, with Ms. Nash subject to an Administrative Order of Suspension for one year and one day. Accordingly, the Commission issued to Ms. Nash a Public Censure.

ILLINOIS

Robert Lyman, CFP® (Barrington, Illinois): In April 2022, the Disciplinary and Ethics Commission (Commission) and Mr. Lyman entered into a Consent Order in which Mr. Lyman agreed that CFP Board would issue a Public Censure. In the Consent Order, Mr. Lyman consented to findings that he failed to manage his personal finances, in violation of Rule 6.5 of the Rules of Conduct, when he failed to pay his federal taxes for tax years 2011 through 2018, resulting in a debt of $246,393 to the Internal Revenue Service (IRS). As a result of this tax debt, the IRS filed several liens against Mr. Lyman. Mr. Lyman entered into an installment agreement with the IRS in June 2020 and is current with that agreement. Mr. Lyman agreed to perform additional remedial work in addition to the Public Censure. Mr. Lyman is required to certify to CFP Board every year for three years his progress towards resolution of the tax liens. Any failure to comply with the certification requirement shall be considered a default, as defined by Article 11.4 of the Procedural Rules, with Mr. Lyman subject to an Administrative Order of Suspension for one year and one day. The Commission issued to Mr. Lyman a Public Censure.

TEMPORARY BAR

ARIZONA

Brent W. Barnes (Chandler, Arizona): In May 2022, CFP Board issued an administrative order temporarily barring Mr. Barnes from applying for or obtaining the CFP® certification marks for one year and one day. This sanction followed Mr. Barnes' failure to acknowledge receipt of CFP Board's Notice of Investigation, as required by Article 1.1 of the Procedural Rules. CFP Board sought to investigate a 2018 consent order with the California Department of Business Oversight in which Mr. Barnes agreed to cease and desist from making unsuitable recommendations and taking performance fees. Mr. Barnes' conduct may have violated Rule 4.3 of the Rules of Conduct, which requires a CFP® professional to comply with the laws, rules and regulations governing professional services. Mr. Barnes has been deemed in default, and CFP Board issued an Administrative Order of Temporary Bar. Mr. Barnes' administrative temporary bar was effective as of June 13, 2022.

KANSAS

Gregory Hanshew (Emporia, Kansas): In March 2022, CFP Board issued an administrative order temporarily barring Mr. Hanshew from applying for or obtaining the CFP® certification marks for one year and one day. This sanction followed Mr. Hanshew's failure to acknowledge receipt of CFP Board's Notice of Investigation, as required by Article 1.1 of the Procedural Rules. CFP Board sought to investigate two civil judgment liens filed against Mr. Hanshew, a 2016 employment separation under allegations of misconduct and a 2019 arrest for obstructing a peace officer. Mr. Hanshew's conduct may have violated Rules 5.1 and 6.5 of the Rules of Conduct. Under Article 4.1.a. of the Procedural Rules, Mr. Hanshew has been deemed in default, and CFP Board issued an Administrative Order of Temporary Bar. Mr. Hanshew's administrative temporary bar was effective as of April 25, 2022.

PENNSYLVANIA

David Paul Carson (Lancaster, Pennsylvania): In April 2022, CFP Board issued an administrative order temporarily barring Mr. Carson from applying for or obtaining the CFP® certification marks for one year and one day. This sanction followed Mr. Carson's relinquishment of his certification and his failure to acknowledge receipt of CFP Board's Notice of Investigation, as required by Article 1.1 of the Procedural Rules. CFP Board sought to investigate a $65,023 federal tax lien filed against Mr. Carson. Mr. Carson's conduct may have violated Standard E.2 of the Code of Ethics and Standards of Conduct, which provides that a CFP® professional may not engage in conduct that reflects adversely on the CFP® professional, the CFP® marks or the profession. Under Article 4.1.a. of the Procedural Rules, Mr. Carson has been deemed in default, and CFP Board issued an Administrative Order of Temporary Bar. Mr. Carson's administrative temporary bar was effective as of May 10, 2022.

TEXAS

Gregory P. Morgan (Coppell, Texas): In April 2022, CFP Board issued an administrative order temporarily barring Mr. Morgan from applying for or obtaining the CFP® certification marks for one year and one day. This sanction followed Mr. Morgan's failure to acknowledge receipt of CFP Board's Notice of Investigation, as required by Article 1.1 of the Procedural Rules. CFP Board sought to investigate the circumstances surrounding Mr. Morgan's termination by his firm in April 2021. Mr. Morgan's conduct may have violated Standard A.2 of the Code of Ethics and Standards of Conduct. Under Article 4.1.a. of the Procedural Rules, Mr. Morgan has been deemed in default, and CFP Board issued an Administrative Order of Temporary Bar. Mr. Morgan's administrative temporary bar was effective as of May 3, 2022.

SUSPENSION

ARIZONA

Robert F. Keats (Phoenix, Arizona): In May 2022, CFP Board issued an administrative order suspending Mr. Keats' right to use the CFP® certification marks for one year and one day. This sanction followed Mr. Keats' failure to acknowledge receipt of CFP Board's Notice of Investigation, as required by Article 1.1 of the Procedural Rules. CFP Board sought to investigate the facts and circumstances surrounding a civil suit filed against Mr. Keats by a customer on November 9, 2021. Mr. Keats' conduct may have violated Standard E.2 of the Code of Ethics and Standards of Conduct, which provides that a CFP® professional may not engage in conduct that reflects adversely on his or her integrity or fitness as a certificant, on the CFP® marks or on the profession. Under Article 4.1.a. of the Procedural Rules, Mr. Keats has been deemed in default, and CFP Board issued an Administrative Order of Suspension. Mr. Keats' administrative suspension was effective as of June 14, 2022.

MICHIGAN

Anthony Agbay (Bloomfield Hills, Michigan): In March 2022, CFP Board issued an administrative order suspending Mr. Agbay's right to use the CFP® certification marks for one year and one day. This sanction followed Mr. Agbay's failure to file an Answer to CFP Board's Complaint within the required time frame. CFP Board alleged that Mr. Agbay refused to respond to CFP Board's requests for information and a Notice of Failure to Cooperate. CFP Board sought to investigate a 2016 federal tax lien filed against Mr. Agbay. CFP Board's Complaint alleged that Mr. Agbay failed to satisfy his Duty of Cooperation, thereby violating Standard E.5 of the Code of Ethics and Standards of Conduct. Mr. Agbay failed to file an Answer to CFP Board's Complaint within 30 calendar days of the date of service, as required by Article 3.2 of the Procedural Rules. Under Article 4.1.b. of the Procedural Rules, Mr. Agbay has been deemed in default, and CFP Board issued an Administrative Order of Suspension. Mr. Agbay's administrative suspension was effective as of April 22, 2022.

NEW YORK

Allan Katz (Staten Island, New York): In May 2022, the Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Katz received a three-month suspension of his right to use the CFP® certification marks. The Commission issued its order after determining that: (1) Mr. Katz violated Rule 4.3 of CFP Board's Rules of Conduct, which provides that a CFP® professional shall be in compliance with applicable regulatory requirements governing professional services provided to the client, when he entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) consenting to findings that he violated FINRA Rule 2010 when he reused a customer's signature page 11 times — with the customer's permission — to expedite transaction processing; (2) Mr. Katz violated Rule 5.1 of the Rules of Conduct, which provides that a certificant who is an employee/agent shall perform professional services with dedication to the lawful objectives of the employer/principal and in accordance with CFP Board's Code of Ethics because his reuse of original signatures violated his firm's policies and procedures; and (3) Mr. Katz violated Standard E.3.c. of CFP Board's Code and Standards, which states that a CFP® professional must provide written notice to CFP Board within thirty (30) calendar days after the CFP® professional, or an entity over which the CFP® professional was a Control Person, has had conduct mentioned adversely in a Finding in a Regulatory Action involving failure to comply with the laws, rules or regulations governing Professional Services. Accordingly, the Commission issued to Mr. Katz a suspension for three months. Mr. Katz's suspension is effective from June 6, 2022, through September 6, 2022.

PENNSYLVANIA

Kenneth S. Raymond (McMurray, Pennsylvania): In April 2022, the Disciplinary and Ethics Commission (Commission) and Mr. Raymond entered into a Consent Order in which Mr. Raymond agreed that CFP Board would issue a three-month suspension of his right to use the CFP® certification marks. In the Consent Order, Mr. Raymond consented to findings that he violated Rule 6.5 of the Rules of Conduct when he was charged with Driving under the Influence in 2010 and convicted of another instance of the same charge in 2016. Mr. Raymond also violated Rule 6.2 of the Rules of Conduct when he failed to report these events to CFP Board and made false and misleading statements regarding his conviction in the Ethics Declaration he completed as part of his Renewal Application in 2017. The Commission issued to Mr. Raymond a suspension for three months. Mr. Raymond's suspension is effective from April 26, 2022, through July 26, 2022.

TENNESSEE

Richard L. Carman (Memphis, Tennessee): In May 2022, CFP Board issued an administrative order suspending Mr. Carman's right to use the CFP® certification marks for one year and one day. This sanction followed Mr. Carman's failure to respond to CFP Board's Notice of Investigation, as required by Article 1.1 of the Procedural Rules. CFP Board sought to investigate: (i) three federal tax liens filed against Mr. Carman, totaling approximately $920,0000; (ii) his July 2021 termination from a firm for exercising improper time and price discretion in client accounts without written authorization; and (iii) his April 2022 termination from another firm for violating its policy related to the disclosure of tax liens. Under Article 4.1.a. of the Procedural Rules, Mr. Carman has been deemed in default, and CFP Board issued an Administrative Order of Suspension. Mr. Carman's administrative suspension was effective as of June 14, 2022.

PERMANENT BAR

COLORADO

Brandon Self (Colorado Springs, Colorado): In May 2022, CFP Board issued an administrative order permanently barring Mr. Self from applying for or obtaining the CFP® certification marks. This sanction followed Mr. Self's failure to file an Answer to CFP Board's Complaint within the required time frame. CFP Board alleged that Mr. Self engaged in Exam Misconduct by participating in a GroupMe chat group titled "March 2021 CFP® Exam" wherein, on five separate occasions, Mr. Self solicited assistance from chat group participants who had already taken the March 2021 CFP® Exam by requesting information about examination questions they observed on the March 2021 CFP® Exam. CFP Board also alleged Mr. Self knowingly gained an advantage over other March 2021 CFP® Exam-takers when he studied topics based on the information he received from those individuals who had taken the March 2021 CFP® Exam. CFP Board's Complaint alleged that Mr. Self's conduct violated the Pathway to CFP® Certification Agreement, which provides that Exam Misconduct includes attempting to give or receive assistance, or otherwise communicating about the Exam, during the Exam administration. Mr. Self failed to file an Answer to CFP Board's Complaint within 30 calendar days of the date of service, as required by Article 3.2 of the Procedural Rules. Under Article 4.1.b. of the Procedural Rules, Mr. Self has been deemed in default, and CFP Board issued an Administrative Order of Permanent Bar. Mr. Self's administrative permanent bar was effective as of June 2, 2022.

PENNSYLVANIA

J.C. Morrow (Washington, Pennsylvania): In May 2022, CFP Board issued an administrative order permanently barring Mr. Morrow from applying for or obtaining the CFP® certification marks. This sanction followed Mr. Morrow's failure to file an Answer to CFP Board's Complaint. CFP Board alleged that Mr. Morrow failed to pay his federal tax obligations for 2015, 2016 and 2017, which resulted in two federal tax liens and a total outstanding debt to the Internal Revenue Service of approximately $202,000. CFP Board's Complaint alleged that Mr. Morrow's conduct violated Standard E.2 of the Code of Ethics and Standards of Conduct, which provides that a CFP® professional may not engage in conduct that reflects adversely on his or her integrity or fitness as a certificant, on the CFP® marks or on the profession. Mr. Morrow failed to file an Answer to CFP Board's Complaint within 30 calendar days of the date of service, as required by Article 3.2 of the Procedural Rules. Under Article 4.1.b. of the Procedural Rules, Mr. Morrow has been deemed in default, and CFP Board issued an Administrative Order of Permanent Bar. Mr. Morrow's administrative permanent bar was effective as of June 14, 2022.

RHODE ISLAND

Robert J. Sclama (North Providence, Rhode Island): In May 2022, CFP Board issued an administrative order permanently barring Mr. Sclama from applying for or obtaining the CFP® certification marks. This sanction followed Mr. Sclama's failure to file an Answer to CFP Board's Complaint within the required time frame. CFP Board alleged that Mr. Sclama violated the Terms and Conditions of Certification and License by refusing to respond to CFP Board's requests for information and a Notice of Failure to Cooperate. CFP Board sought to investigate a pending civil litigation matter against Mr. Sclama, in which two of his clients allege fraud, negligence, breach of contract and professional malpractice. Mr. Sclama failed to file an Answer to CFP Board's Complaint within 30 calendar days of the date of service, as required by Article 3.2 of the Procedural Rules. Under Article 4.1.b. of the Procedural Rules, Mr. Sclama has been deemed in default, and CFP Board issued an Administrative Order of Permanent Bar. Mr. Sclama's administrative permanent bar was effective as of June 13, 2022.

REVOCATION

FLORIDA

Iva Hauck Girtman (Bushnell, Florida): In September 2020, CFP Board issued an administrative order permanently revoking Ms. Girtman's right to use the CFP® certification marks. This sanction followed Ms. Girtman's failure to file an Answer to CFP Board's Complaint within the required time frame. CFP Board's Complaint alleged that Ms. Girtman was charged with grand theft larceny in March 2015 after she admitted that over a five-year period, she stole approximately $19,500 in reward points from her employer's company credit card. Ms. Girtman was terminated for her actions. The Complaint also alleged that Ms. Girtman entered into a pre-trial intervention program whereby she paid restitution to her former employer and paid for an independent audit of her former employer's accounts to prove that no additional funds had been tampered with. The Complaint alleged that the independent audit found no other irregularities. Ms. Girtman's petition for expungement of the felony charge was granted. The Complaint further alleged that Ms. Girtman failed to report her charge to CFP Board. Finally, the Complaint alleged that Ms. Girtman's conduct violated Rules 5.1 and 6.5 of the Rules of Conduct. Ms. Girtman failed to provide an Answer to the Complaint within 30 calendar days as required by Article 3.2 of the Procedural Rules. In accordance with Article 4.1.b. of the Procedural Rules, Ms. Girtman has been deemed in default, and CFP Board issued an Administrative Order of Revocation. Ms. Girtman's administrative revocation was effective as of September 29, 2020.

Edward L. Stahley, Jr. (Rockledge, Florida): In May 2022, CFP Board issued an administrative order permanently revoking Mr. Stahley's right to use the CFP® certification marks. This sanction followed Mr. Stahley's failure to file an Answer to CFP Board's Complaint within the required time frame. CFP Board alleged that Mr. Stahley violated Standard E.2.a. of the Code of Ethics and Standards of Conduct, which provides that a CFP® professional may not engage in conduct that reflects adversely on his or her integrity or fitness as a certificant, on the CFP® marks or on the profession, when he was convicted of his third DUI in October 2021. Mr. Stahley failed to file an Answer to CFP Board's Complaint within 30 calendar days of the date of service, as required by Article 3.2 of the Procedural Rules. Under Article 4.1.b. of the Procedural Rules, Mr. Stahley has been deemed in default, and CFP Board issued an Administrative Order of Revocation. Mr. Stahley's administrative revocation was effective as of June 13, 2022.

VIRGINIA

Brian Bogart (McLean, Virginia): In September 2020, CFP Board issued an administrative order permanently revoking Mr. Bogart's right to use the CFP® certification marks. This sanction followed Mr. Bogart's failure to file an Answer to CFP Board's Complaint within the required time frame. CFP Board's Complaint alleged that Mr. Bogart was permitted to resign during the firm's investigation into Mr. Bogart's participation in an unapproved private fund and the Financial Industry Regulatory Authority (FINRA) Cautionary Action Letter that addressed deficiencies in Mr. Bogart's conduct relating to a private fund offering. Mr. Bogart also failed to make any conflict of interest disclosures to multiple clients and a prospective client when he sought to obtain their investment in the private fund, of which Mr. Bogart was a partial owner in the newly created entity. CFP Board's Complaint alleged that Mr. Bogart's conduct violated Rules 1.4, 2.2, 2.2(B), 4.3 and 5.1 of the Rules of Conduct. Mr. Bogart 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 the Disciplinary Rules. In accordance with Article 4.1.b. of the Procedural Rules, the allegations set forth in the Complaint were deemed admitted, and CFP Board issued an Administrative Order of Revocation. Mr. Bogart's administrative revocation was effective as of October 20, 2020.

ABOUT CFP BOARD

Certified Financial Planner Board of Standards, Inc. (CFP Board) is the professional body for personal financial planners in the United States. CFP Board sets standards for financial planning and administers the prestigious CFP® certification – one of the most respected certifications in financial services – so that the public has access to and benefits from competent and ethical financial planning. CFP Board, along with its Center for Financial Planning, is committed to increasing the public's awareness of CFP® certification and access to a diverse, ethical and competent financial planning workforce. Widely recognized by firms and consumer groups as the standard for financial planning, the CFP® certification is held by more than 93,000 people in the United States.

SOURCE Certified Financial Planner Board of Standards, Inc.