CFP Board Imposes Public Sanctions On 22 Individuals

WASHINGTON, Nov. 22, 2021 /PRNewswire/ -- Certified Financial Planner Board of Standards, Inc. (CFP Board) announced today public sanctions against 22 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.

Eighteen of the public sanctions announced in this news release are the result of "Historical Investigations" opened by CFP Board following background checks conducted on all CFP® professionals to detect potential misconduct that previously had not been reported to CFP Board. This misconduct can include regulatory actions, firm terminations, customer complaints, arbitrations, and civil court litigation that involve professional conduct, criminal matters, bankruptcies, civil judgments, and tax liens.

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. 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 the Code and Standards, or its predecessor Standards. 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. More information on CFP Board's enforcement process can be found at CFP.net/ethics/enforcement.

The Public Sanctions
A short summary of each sanction can be found below. At CFP.net/verify-a-cfp-professional, CFP Board provides the public with:

• The ability to check on any 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) BrokerCheck and the U.S. Securities and Exchange Commission's (SEC) Investment Adviser Public Disclosure databases for individuals who are subject to FINRA or SEC oversight.

PUBLIC CENSURE

CALIFORNIA

Derrik J. Hubbard, CFP® (Valencia, California): In September 2021, the Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Hubbard received a Public Censure. The Commission imposed this sanction after determining that Mr. Hubbard did not timely file his federal taxes between 2013 and 2018, resulting in tax liens filed by the Internal Revenue Service (IRS) totaling $172,000, with accrued interest and penalties.  Although Mr. Hubbard defaulted on a prior installment agreement with the IRS, he entered into a new installment agreement in 2019 and currently is in compliance with it.  He provided evidence of filing his 2019 and 2020 tax returns and demonstrated that he does not have a tax balance for those years.  The State of California also issued tax liens against Mr. Hubbard in 2014 and 2015, totaling over $27,000. He is currently in compliance with a California installment agreement as well. The Commission determined that Mr. Hubbard's conduct violated Rule 6.5 of the Rules of Conduct, which provides that a certificant shall not engage in conduct which reflects adversely on his integrity or fitness as a certificant, upon the CFP® marks, or upon the profession. Accordingly, the Commission determined to issue Mr. Hubbard a Public Censure.

FLORIDA

Matthew M. Chancey, CFP® (Tampa, Florida): In August 2021, the Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Chancey received a Public Censure with a Certification requirement. The Commission issued its order after determining that Mr. Chancey failed to timely pay taxes to the Internal Revenue Service (IRS) for six years from 2013 to 2018, resulting in the IRS filing six federal tax liens against Mr. Chancey totaling more than $130,000. The Commission determined that Mr. Chancey's conduct violated Rule 6.5 of the Rules of Conduct, which provides that a certificant shall not engage in conduct which reflects adversely on his integrity or fitness as a certificant, upon the CFP® marks, or upon the profession. Because Mr. Chancey had not yet established an installment agreement with the IRS, the Commission required Mr. Chancey to perform additional remedial work in addition to the Public Censure.  Mr. Chancey is required to certify to CFFP Board every six months 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. Chancey subject to an Administrative Order of Suspension for One year and One day.  Accordingly, the Commission determined to issue Mr. Chancey a Public Censure with a Certification Requirement.

MINNESOTA

Robert J. Hannah, CFP® (Mound, Minnesota): In July 2021, CFP Board issued an order in which Mr. Hannah received a Public Censure. This sanction followed an appeal of a February 2021 decision by the Disciplinary and Ethics Commission (Commission).  The Code and Standards Enforcement Committee of CFP Board (Enforcement Committee) affirmed the Commission's findings that Mr. Hannah (1) entered a guilty plea to a court pleading guilty to Driving While Intoxicated 4th Degree; and (2) made a false statement to CFP Board on his 2014 CFP Board Ethics Disclosure form. The Enforcement Committee also affirmed the Commission's determination that Mr. Hannah's conduct violated Rules 6.2 of the Rules of Conduct, which states that a certificant shall meet all CFP Board requirements to retain the right to use the CFP® marks, and Rule 6.5 of the Rules of Conduct, which provides that a certificant shall not engage in conduct which reflects adversely on his integrity or fitness as a certificant, upon the CFP® marks, or upon the profession.  Accordingly, CFP Board issued to Mr. Hannah a Public Censure.

MISSOURI

Ryan C. Judd (Wentzville, Missouri): In August 2021, CFP Board issued a Public Censure to Mr. Judd after he admitted (1) to filing a Chapter 7 Bankruptcy in the Eastern District of Missouri on May 28, 2020 (Bankruptcy Matter) and (2) that the Bankruptcy Matter demonstrates an inability to manage responsibly his financial affairs. Mr. Judd also consented to findings that his conduct violated Standard E.2.c. of the Code of Ethics and Standards of Conduct, which states that a CFP® professional may not engage in conduct that reflects adversely on his or her integrity or fitness as a CFP® professional, upon the CFP® marks, or upon the profession, including a personal bankruptcy.  Mr. Judd also agreed that CFP Board would issue an Order of Public Censure.  Accordingly, Mr. Judd received a Public Censure.

RHODE ISLAND

Richard A. Ranone (Cranston, RI): In September 2021 (Cranston, RI), the Disciplinary and Ethics Commission (Commission) and Mr. Ranone entered into a consent order in which Mr. Ranone agreed that CFP Board would issue a Public Censure. In the consent order, Mr. Ranone consented to findings that he failed to exercise reasonable and prudent professional judgment when providing professional services to a client when Respondent, at the instructions of the client, allowed the client to sign an account form on which the beneficiary designation was blank. Mr. Ranone later filled in the beneficiary information as instructed by his client, presented it to his firm where it was notarized without witnessing the client's signature. In an effort to correct this error, Mr. Ranone filled out a new beneficiary form and upon confirming the beneficiary with the client, had the client sign the document when the client was in the hospital. Mr. Ranone did so without anyone from his firm or a notary present. The notary at the firm notarized the new form without witnessing the client signing the form.  Mr. Ranone also consented to findings that his conduct violated Rules 4.4, 5.1 and 6.5 of the Rules of Conduct based upon his failure to follow the employer's policy of properly filling out and notarizing required documentation that ultimately contributed protracted inter-family litigation after the client passed away.

SUSPENSION

MASSACHUSETTS

Brian Lockhart (Boston, Massachusetts): In September 2021, CFP Board issued an order in which Mr. Lockhart received a Suspension of one year and one day of his right to use the CFP® certification marks. This sanction followed an appeal of a December 2020 decision by the Disciplinary and Ethics Commission (Commission).  The Code and Standards Enforcement Committee of CFP Board (Enforcement Committee) affirmed the Commission's findings that Mr. Lockhart put his interests ahead of his client when, while serving as an investment adviser to a child support trust, he introduced the trust to an investment in a Christian Christmas movie when he had personal financial interests in the movie himself as an investor and as Executive Producer. This was a direct violation of the fiduciary duty described in his firm's Form ADV. Mr. Lockhart also failed to disclose his personal financial interests in the movie and failed to fully disclose the conflict of interest between his role as investment adviser to the trust and his role as Executive Producer/investor prior to the trust's investment. Further, given that the investment objective for the trust was income, Mr. Lockhart's recommendation that the trust sell income-oriented investments and use cash to fund a highly speculative, risky, and illiquid investment that could not provide income in early years was not suitable and reflects adversely on Mr. Lockhart's integrity or fitness as a certificant, as well as upon the CFP® marks and the profession. The Commission determined that Mr. Lockhart's conduct violated Rules 1.4, 2.1, 2.2B, 4.5, and 6.5 of the Rules of Conduct.  Accordingly, the Commission issued to Mr. Lockhart a suspension for one year and one day. Mr. Lockhart's suspension is effective from September 16, 2021 until September 17, 2022.

MICHIGAN

Nathan D. Sealey (Clarkston, Michigan): In September 2021, the Disciplinary and Ethics Commission (Commission) and Mr. Sealey entered into a Consent Order pursuant to which the Commission issued Mr. Sealey a Suspension of one year and one day.  The Commission imposed this sanction after determining that Mr. Sealey failed to timely pay his federal taxes over the course of several years resulting in the IRS filing tax liens against Mr. Sealey totaling over $436,000, but also that Mr. Sealey recently made a sizable payment toward satisfaction of his total debt and indicated an intention to make similar payments on a quarterly basis. Pursuant to the Consent Order, Mr. Sealey also consented to the Commission's finding that his conduct violated Rule 6.5 of the Rules of Conduct, which provides that a certificant shall not engage in conduct which reflects adversely on his integrity or fitness as a certificant, upon the CFP® marks, or upon the profession, and Standard E.5 of the Code of Ethics and Standards of Conduct, which provides that a CFP® professional must satisfy the cooperation requirements set forth in CFP Board's Procedural Rules, including by cooperating fully with CFP Board's requests, investigations, disciplinary proceedings, and disciplinary decisions. Accordingly, the Commission suspended Mr. Sealey's certification for one year and one day, effective September 27, 2021 through September 28, 2022.

NEW YORK

David Samet (Spring Valley, New York): In August 2021, the Disciplinary and Ethics Commission (Commission) and Mr. Samet entered into a Consent Order pursuant to which the Commission issued Mr. Samet a Suspension of one year and one day.  The Commission imposed this sanction after determining that Mr. Samet failed to pay his federal taxes resulting in a debt of $94,724.60 over the course of five years and that he is not currently enrolled in an installment plan with the Internal Revenue Service.  Pursuant to the Consent Order, Mr. Samet also consented to the Commission's finding that his conduct violated Rule 6.5 of the Rules of Conduct, which states that a certificant shall not engage in conduct which reflects adversely on his or her integrity or fitness as a certificant, upon the CFP® marks, or upon the profession.  Accordingly, the Commission suspended Mr. Samet's certification for one year and one day, effective August 16, 2021 through August 17, 2022.

James Wright (New York, New York): In July 2021, the Disciplinary and Ethics Commission (Commission) and Mr. Wright entered into a Consent Order pursuant to which the Commission issued Mr. Wright a Suspension of one year and one day. In the Consent Order, Mr. Wright consented to findings that he violated Rules 4.3, 5.1, 6.2, and 6.5 of the Rules of Conduct and Article 13.2 of the CFP Board's prior Disciplinary Rules and Procedures when he: (1) failed to comply with Financial Industry Regulatory Authority (FINRA) Rules 4511 and 2010 by using two unapproved personal email accounts and text messages from his personal smartphone that were not networked with his firm's retention system for electronic communications to conduct firm business; (2) failed to comply with his firm's written supervisory procedures regarding electronic communications; (3) made misrepresentations on certifications to CFP Board that (i) he had not been terminated for cause when the cause of his termination involved allegations relating to compliance and that (ii) he had not been the subject of a self-regulatory inquiry or investigation; (4) failed to notify CFP Board in writing of professional discipline; and (5) by virtue of the foregoing, engaged in conduct that reflected adversely on his integrity or fitness as a certificant, upon the  CFP® marks, or upon the profession. Accordingly, the Commission issued to Mr. Wright a suspension for one year and one day. Mr. Wright's suspension was effective as of August 17, 2021 through August 18, 2022.

PENNSYLVANIA

Timothy Seiders (Lansdale, Pennsylvania): In July 2021, the Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Seiders received a Suspension of his right to use the CFP® certification marks for one year and one day. The Commission issued its order after determining that, among other things, Mr. Seiders incurred tax liabilities that he failed to timely pay to the Internal Revenue Service (IRS) for nine consecutive years, resulting in the IRS filing federal tax liens against him for several of those years and those liens are all currently outstanding. Mr. Seiders also failed to timely pay the Commonwealth of Pennsylvania any tax liability that he was assessed during six consecutive years, resulting in state tax liens filed against him each of those years, some of which are currently outstanding. In addition to his personal tax liabilities, the IRS imposed federal tax liens for three tax years against Mr. Seiders' business, although those liens have since been paid. The Commission determined that Mr. Seiders owes a total of more than $287,000 in state and federal taxes. The Commission determined that, through this conduct, Mr. Seiders demonstrated a pattern of inability to manage his finances, which reflects adversely on his integrity and fitness as a CFP® professional, upon the CFP® marks, and upon the profession, violating Rule 6.5 of the Rules of Conduct.  Accordingly, the Commission issued to Mr. Seiders a suspension for one year and one day, effective September 17, 2021 through September 18, 2022.

TEMPORARY BAR

CALIFORNIA

Murray Todd Petersen (Roseville, California): In August 2021, the Disciplinary and Ethics Commission (Commission) approved a Consent Order in which Mr. Petersen received a four-year Temporary Bar of his right to apply for or obtain the CFP® certification marks. The Commission determined that, in September 2020, the California Department of Business Oversight, Business, Consumer Services and Housing Agency (now the Department of Financial Protection and Innovation) issued a Desist and Refrain Order against Mr. Petersen for offering or selling unregistered securities in the form of gemstones-investment "parcel" contracts to at least four California residents, while making untrue statements of material facts, including that (1) investors would receive a minimum of 30% profit in addition to their principal investment within 12 months of the sale of the jewelry "parcels"; and (2) the investment was "low risk" and investors could sell their jewelry "parcels" at any time for "fast" liquidation. Pursuant to the Consent Order, the Commission determined that Mr. Petersen's conduct was not in compliance with applicable regulatory requirements governing professional services provided to client(s) in violation of Rule 4.3 of the Rules of Conduct. Accordingly, the Commission issued to Mr. Petersen a temporary bar of four years. Mr. Petersen's temporary bar is effective from October 4, 2021 until October 4, 2025.

PERMANENT BAR

CONNECTICUT

James Hyland (Farmington, Connecticut): In September 2021, CFP Board issued an Administrative Order of Permanent Bar, permanently barring Mr. Hyland from applying for or obtaining the right to use the CFP® certification marks. This sanction followed Mr. Hyland's failure to file an Answer to CFP Board's Complaint within the required timeframe. CFP Board's Complaint alleged that Mr. Hyland violated Standard E.5 of the Code of Ethics and Standards of Conduct when he refused to respond to CFP Board's requests for information regarding his 2017 termination from Cambridge Investment Research, Inc. and the subsequent Notice of Failure to Cooperate. Mr. Hyland failed to file an Answer to CFP Board's Complaint within 30 calendar days as required by Article 3.2 of the Procedural Rules. Under Article 4.1.b. of the Procedural Rules, Mr. Hyland has been deemed in default. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope, and harmfulness of Mr. Hyland's conduct, and the fact that Mr. Hyland allowed his CFP® certification to lapse prior to the issuance of the Order, CFP Board issued an Administrative Order of Permanent Bar wherein Mr. Hyland is permanently barred from applying for or obtaining the right to use the CFP® certification marks. Mr. Hyland's permanent bar became effective as of October 14, 2021.

FLORIDA

Marshall D. Gunn, Jr. (Jacksonville, Florida): In October 2021, CFP Board issued an issued an Administrative Order of Permanent Bar, permanently barring Mr. Gunn from applying for or obtaining CFP® certification. This sanction followed Mr. Gunn's failure to file an Answer to CFP Board's Complaint within the required timeframe. CFP Board's Complaint alleged that Mr. Gunn failed to respond to CFP Board's request for additional information in connection with its investigation of a 2020 U.S. Securities and Exchange Commission regulatory action in which Mr. Gunn was required to pay $197,500.00 in disgorgement, plus interest, and a $50,000.00 civil penalty. By failing to respond to CFP Board's request for information or to file an Answer to the Complaint, Mr. Gunn violated Section k of the Terms and Conditions and Standard E.5 of the Code of Ethics and Standards of Conduct, to which he was subject. Under Article 4.1.b of the Procedural Rules, Mr. Gunn is deemed in default. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope and harmfulness of Mr. Gunn's conduct, CFP Board issued an Administrative Order of Permanent Bar. Mr. Gunn's administrative permanent bar was effective as of November 1, 2021.

MICHIGAN

Beth Ann DeBouvre (Stanwood, Michigan): In January 2021, CFP Board issued an Administrative Order of Permanent Bar, permanently barring Ms. DeBouvre from applying for or obtaining CFP® certification. This sanction followed Ms. DeBouvre's failure to file an Answer to CFP Board's Complaint within the required timeframe. CFP Board's Complaint alleged that Ms. DeBouvre permitted an individual, who had been barred by the Financial Industry Regulatory Authority (FINRA) and statutorily disqualified under the Securities and Exchange Act of 1934, to conduct a securities business through a member firm. CFP Board's Complaint alleged that, in an attempt to facilitate the business of the statutorily disqualified and barred individual, Ms. DeBouvre falsified new account forms, suitability forms, subscription agreements, investment disclosure forms, and other account documents to conceal the fact that the statutorily disqualified and barred individual was meeting with customers, making recommendations, providing investment advice, and otherwise acting as an associated person in a registered capacity. In addition, CFP Board's Complaint alleged Ms. DeBouvre failed to inform customers that the individual was statutorily disqualified and barred; approved accounts that the individual opened and transactions that he recommended; and attempted to dissuade customers from cooperating with FINRA's investigation. In addition, CFP Board's Complaint alleged that FINRA determined that Ms. DeBouvre's conduct constituted violations of several FINRA rules, including NASD Rules 2110 and 1031, and FINRA Rules 2010 and 8311, and Ms. DeBouvre was suspended from associating with any FINRA member firm in any capacity for fifteen months and was fined $10,000. CFP Board's Complaint further alleged that Ms. DeBouvre's conduct violated 4.3, 5.1, and 6.5 of the Rules of Conduct, providing grounds for sanction. Ms. DeBouvre failed to file an Answer to the Complaint to CFP Board within 30 calendar days of the date of service, as required by Article 3.2 of the Procedural Rules. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope and harmfulness of Ms. DeBouvre's conduct, CFP Board issued an Administrative Order of Permanent Bar. Ms. DeBouvre's administrative permanent bar was effective as of February 4, 2021.

WISCONISN

Lori Ann Sacco (Wauwatosa, Wisconsin): In September 2021, CFP Board issued an Administrative Order of Permanent Bar, permanently barring Ms. Sacco from applying for or obtaining the CFP® certification. This sanction followed Ms. Sacco's failure to file an Answer to CFP Board's Complaint, as required by Article 3.2 of the Procedural Rules. Ms. Sacco entered into a Letter of Acceptance, Waiver and Consent (AWC) in September 2020 with the Financial Industry Regulatory Authority (FINRA) whereby she agreed to a six-month suspension from association with any FINRA member firm. The AWC found that, from March 2014 to October 2018, while associated with a firm, she falsified 10 firm customer account documents by cutting and pasting customers' signatures or initials onto documents and then submitting the forged documents to her firm for processing as if they had been properly executed. Eight of the falsified documents that Ms. Sacco submitted to her firm were firm records required to be made and preserved under FINRA Rules. This conduct violated FINRA Rule 2010 and FINRA Rule 4511. FINRA ordered Ms. Sacco to pay a $10,000 fine if she associated with any FINRA member firm after the suspension. The Complaint alleged that Ms. Sacco's conduct violated Rules 4.3, 5.1 and 6.5 of CFP Board's Rules of Conduct. Under Article 4.1.b of the Procedural Rules, Ms. Sacco has been deemed in default. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board determination of the seriousness, scope and harmfulness of Ms. Sacco's conduct, CFP Board issued an Administrative Order of Permanent Bar. Ms. Sacco's administrative permanent bar was effective as of October 29, 2021.

REVOCATION

CALIFORNIA

Michael J. Altobell (Rocklin, California): In September 2021, CFP Board issued an Administrative Order of Revocation to Mr. Altobell permanently revoking his right to use the CFP® certification marks. In June 2021, CFP Board filed a Complaint against Mr. Altobell alleging that in September 2018, a Final Order was issued by the California Department of Business Oversight, Business, Consumer Services and Housing Agency (now the Department of Financial Protection and Innovation), in which Mr. Altobell was permanently barred from any position of employment, management or control of any investment adviser, broker-dealer or commodity adviser in California. The Complaint alleged that Mr. Altobell failed to comply with his duties of cooperation in connection with CFP Board's investigation of the circumstances leading to the California disciplinary action and thereby violated Section k of the Terms and Conditions, to which he was subject. Under Article 4.1.b of the Procedural Rules, Mr. Altobell has been deemed in default for failing to file an Answer to the Complaint. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board determination of the seriousness, scope and harmfulness of Mr. Altobell's conduct, CFP Board issued an Administrative Order of Revocation. Mr. Altobell's administrative revocation was effective as of October 3, 2021.

GEORGIA

Daniel Motherway (Marietta, Georgia): In September 2021, CFP Board issued an Administrative Order of Revocation permanently revoking Mr. Motherway's right to use the CFP® certification marks. This sanction followed Mr. Motherway's failure to file an Answer to CFP Board's Complaint within the required timeframe. CFP Board's Complaint alleged that Mr. Motherway violated Standard E.5 of the Code of Ethics and Standards of Conduct when he refused to respond to CFP Board's requests for information and Notice of Failure to Cooperate. CFP Board sought to investigate Mr. Motherway's 2015 resignation from his firm under allegations that he sent client account information to his personal email address and exercised unauthorized discretion in client accounts. CFP Board also sought to investigate Mr. Motherway's 2020 Suspension from the Financial Industry Regulatory Authority, which arose from a 2017 termination from UBS Financial Services and subsequent arbitration award for breach of a promissory note. Mr. Motherway failed to file an Answer to CFP Board's Complaint within 30 calendar days as required by Article 3.2 of the Procedural Rules. Under Article 4.1.b. of the Procedural Rules, Mr. Motherway has been deemed in default. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope, and harmfulness of Mr. Motherway's conduct, CFP Board issued an Administrative Order of Revocation. Mr. Motherway's administrative revocation was effective as of October 15, 2021.

MICHIGAN

James A. Watts (Belmont, Michigan): In September 2021, CFP Board issued an Administrative Order of Revocation permanently revoking Mr. Watts' right to use the CFP® certification marks. This sanction followed Mr. Watts' failure to submit the fee assessed to him pursuant to Article 17.4 of the Procedural Rules in conjunction with CFP Board's Complaint alleging that Mr. Watts violated Standard E.5 of CFP Board's Code of Ethics and Standards of Conduct when he refused to provide information requested by in CFP Board's requests for information and Notice of Failure to Cooperate. CFP Board sought to investigate Mr. Watts' 2010 and 2019 Chapter 7 Bankruptcy filings and his failure to timely report the most recent bankruptcy filing to CFP Board.  Under Article 4.1.d. of the Procedural Rules, Mr. Watts has been deemed in default. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope, and harmfulness of Mr. Watts' conduct, CFP Board issued an Administrative Order of Revocation. Mr. Watts' administrative revocation was effective as of October 15, 2021.

NEW JERSEY

Daniel J. Leonetti (Marlton, New Jersey): In February 2021, CFP Board issued an Administrative Order of Revocation permanently revoking Mr. Leonetti's right to use the CFP® certification marks. This sanction followed Mr. Leonetti's failure to file an Answer within the required timeframe to a Complaint filed by CFP Board in November 2020. The Complaint alleged that Mr. Leonetti (1) filed a second petition for Chapter 13 bankruptcy protection in 2008, converted it to a Chapter 7 bankruptcy in 2011, and intentionally failed to disclose the matter to CFP Board; and (2) intentionally failed to report a 2012 termination to CFP Board. The Complaint further alleged that Mr. Leonetti's conduct violated Rules 6.1 and 6.5 of CFP Board's Rules of Conduct, providing grounds for sanction. Mr. Leonetti 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.  In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope and harmfulness of Mr. Leonetti's conduct, CFP Board issued an Administrative Order of Revocation. Mr. Leonetti's administrative revocation was effective as of March 29, 2021.

PENNSYLVANIA

Albert J. Krauza, Jr. (Morrisville, Pennsylvania): In September 2021, CFP Board issued an Administrative Order of Revocation permanently revoking Mr. Krauza's right to use the CFP® certification marks. This sanction followed Mr. Krauza's failure to timely file an Answer to CFP Board's Complaint alleging that Mr. Krauza violated Standard E.5 of CFP Board's Code of Ethics and Standards of Conduct when he chose not to provide the information requested in CFP Board's requests for information and Notice of Failure to Cooperate. CFP Board sought to investigate Mr. Krauza's 1997 and 2018 Chapter 7 Bankruptcy filings. Mr. Krauza failed to file an Answer to CFP Board's Complaint within 30 calendar days as required by Article 3.2 of the Procedural Rules. Under Article 4.1.b. of the Procedural Rules, Mr. Krauza has been deemed in default. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope, and harmfulness of Mr. Krauza's conduct, CFP Board issued an Administrative Order of Revocation. Mr. Krauza's administrative revocation was effective as of October 15, 2021.

SOUTH CAROLINA

Arthur W. Rich (Aiken, South Carolina): In September 2021, CFP Board issued an Administrative Order of Revocation permanently revoking Mr. Rich's right to use the CFP® certification marks. In June 2021, CFP Board filed a Complaint against Mr. Rich alleging that in November 2016, he entered into a Consent Order with the State Department of Insurance in which it was agreed that between May 2016 and September 2016, Mr. Rich sold 47 title insurance policies with an expired insurance license. For that violation, Mr. Rich paid a $4,700.00 fine to the State. CFP Board further alleged that Mr. Rich misrepresented that he had not been the subject of a governmental agency inquiry or investigation on his 2018 Renewal Application. Mr. Rich's conduct may have violated Rules 4.3 and 6.2 of CFP Board's Rules of Conduct and Standard E.5 of the Code of Ethics and Standards of Conduct. Under Article 4.1.b of the Procedural Rules, Mr. Rich has been deemed in default for failing to file an Answer to the Complaint. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board determination of the seriousness, scope and harmfulness of Mr. Rich's conduct, CFP Board issued an Administrative Order of Revocation. Mr. Rich's administrative revocation was effective as of October 2, 2021.

TEXAS

Harlan T. Cardwell, III (Vernon, Texas): In July 2021, CFP Board issued an order in which Mr. Cardwell received a Revocation, permanently revoking his right to use the CFP® certification marks.  This discipline follows an appeal of a December 2020 decision by the Disciplinary and Ethics Commission (Commission).  The Code and Standards Enforcement Committee of CFP Board (Enforcement Committee) affirmed the Commission's findings that Mr. Cardwell (1) failed to perform professional services with dedication to the lawful objectives of his employer when he violated Firm policy and procedure by accepting a loan from a client and was terminated for it; (2) admitted that he accepted a loan from a client, who was neither an immediate family member nor a lending institution; (3) failed to comply with Financial Industry Regulatory Authority (FINRA) Rule 8210 requiring FINRA members to comply with FINRA requests for information, for which he was automatically and permanently barred by FINRA; and (4) failed to notify CFP Board of his FINRA bar within thirty (30) calendar days. The Enforcement Committee affirmed the Commission's determination that this conduct violated several of CFP Board's Rules of Conduct, including: (1) Rule 3.6, which prohibits borrowing money from a client; (2) Rule 4.3, which requires certificants to be in compliance with applicable regulatory requirements governing professional services provided to the client; (3) Rule 5.1, which requires a certificant who is an employee/agent to perform professional services with dedication to the lawful objectives of the employer/principal; and (4) Rule 6.4, which requires a certificant to notify CFP Board in writing of any professional bar within thirty (30) calendar days after the date on which the CFP Professional is notified of the bar.  The Enforcement Committee also affirmed the Commission's imposition of a Revocation.  Accordingly, CFP Board issued to Mr. Cardwell a Revocation.

ABOUT CFP BOARD

Certified Financial Planner Board of Standards, Inc. is the professional body for personal financial planners in the U.S. 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, CFP® certification is held by more than 90,000 people in the United States.

SOURCE Certified Financial Planner Board of Standards, Inc.

Related Links

http://www.cfp.net

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