CFP Board Imposes Public Sanctions On 12 Individuals

WASHINGTON, March 1, 2022 /PRNewswire/ -- Certified Financial Planner Board of Standards, Inc. (CFP Board) announced today public sanctions against 12 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.

Five 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.  Commission orders may be appealed by a CFP® professional 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/ethics/enforcement.

The Public Sanctions

A short summary of each sanction can be found below. At CFP.net/verify, 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

Mark A. Gilbert, CFP® (Santa Monica, California): In January 2022, the Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Gilbert received a Public Censure. Pursuant to Section E.2 of the Code of Ethics and Standards of Conduct (Code and Standards), 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. Such conduct includes a personal bankruptcy or business bankruptcy filing or adjudication where the CFP® professional was a Control Person of the business, unless the CFP® professional can rebut the presumption that the bankruptcy demonstrates an inability to manage responsibly the CFP® professional's or the business's financial affairs. On February 15, 2021, Mr. Gilbert filed for a Chapter 7 bankruptcy. Pursuant to Article 3.3 of the Procedural Rules, CFP Board filed a Complaint for Single Bankruptcy on June 30, 2021. In his Answer to the Complaint, Mr. Gilbert admitted to the existence of his bankruptcy but denied that the existence of the bankruptcy demonstrates an inability to manage responsibly his financial affairs. After a hearing on the matter, the Commission concluded that Mr. Gilbert did not rebut the presumption that his bankruptcy demonstrates an inability to manage responsibly his financial affairs. Although Mr. Gilbert stated that expenses related to the birth of his child precipitated his bankruptcy filing, he did not present adequate evidence to support his claim. The Commission concluded that Mr. Gilbert violated Standard E.2.c. of the Code and Standards and issued to him an Order of Public Censure.

FLORIDA

Paul A. Finocchiaro, CFP® (Tampa, Florida): In December 2021, the Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Finocchiaro received a Public Censure. Pursuant to Section E.2 of the Code of Ethics and Standards of Conduct (Code and Standards), 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. Such conduct includes a personal bankruptcy or business bankruptcy filing or adjudication where the CFP® professional was a Control Person of the business, unless the CFP® professional can rebut the presumption that the bankruptcy demonstrates an inability to manage responsibly the CFP® professional's or the business's financial affairs. On February 15, 2021, Mr. Finocchiaro filed for a Chapter 7 bankruptcy and CFP Board filed a Complaint for Single Bankruptcy on June 30, 2021 pursuant to Article 3.3 of the Procedural Rules. In his Answer, Mr. Finocchiaro admitted to the existence of his bankruptcy but denied that the existence of the bankruptcy demonstrates an inability to manage responsibly his financial affairs. After a hearing, the Commission concluded that, although Mr. Finocchiaro presented evidence about how his divorce triggered his bankruptcy filing, he did not rebut the presumption that the bankruptcy demonstrated an inability to manage responsibly his financial affairs. The Commission concluded that Mr. Finocchiaro violated Standard E.2.c. of the Code and Standards and issued to him an Order of Public Censure.

GEORGIA

Michael D. Hostetler, CFP® (Marietta, Georgia): In January 2022, the Disciplinary and Ethics Commission (Commission) issued an Order in which Mr. Hostetler received a Public Censure. Pursuant to Rule 6.5 of the Rules of Conduct, 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. Conduct that reflects adversely in violation of Rule 6.5 includes the inability of a CFP® professional to manage his or her personal finances and to meet his or her personal financial obligations. Mr. Hostetler incurred tax liability for six tax years going back to 2010, resulting in the Internal Revenue Service (IRS) filing five federal tax liens totaling $145,302 and the State of Georgia filing two state tax liens totaling $4,788. All liens have been satisfied. In addition, Mr. Hostetler filed a petition for Chapter 7 bankruptcy in January of 2020 to halt foreclosure proceedings on his primary residence but then voluntarily dismissed the bankruptcy filing. Mr. Hostetler subsequently made a false or misleading statement to CFP Board by failing to disclose the bankruptcy filing on his Ethics Declaration merely five months later, thus violating Rule 6.2 of the Rules of Conduct.  The Commission issued Mr. Hostetler an Order of Public Censure.

NORTH CAROLINA

David B. MacLaren, CFP® (Kernersville, North Carolina): In February 2022, the Disciplinary and Ethics Commission (Commission) and Mr. MacLaren entered into a Consent Order in which Mr. MacLaren agreed that CFP Board would issue a Public Censure. In the Consent Order, Mr. MacLaren consented to findings that he violated Rule 6.5 of the Rules of Conduct when he failed to pay his federal taxes resulting in a debt of $160,303 with the Internal Revenue Service (IRS). This tax debt was the direct result of a failure to pay income taxes resulting from high-volume, short-term trading, funded with liquidated retirement accounts. Mr. MacLaren satisfied this debt in July of 2021, pursuant to an Offer in Compromise with the IRS.  The Commission issued Mr. MacLaren an Order of Public Censure.

OREGON

Edward Hassan, CFP® (Astoria, Oregon): In February 2022, CFP Board issued an Order of  Public Censure to Mr. Hassan pursuant to Article 3.4.d. of the Procedural Rules after Mr. Hassan admitted he filed a personal Chapter 7 Bankruptcy in the U.S. Bankruptcy Court for the District of Oregon (Portland) on April 20, 2021, confirmed that he had no other bankruptcy matters, and that his conduct violated Standard E.2.c. of the Code of Ethics and Standards of Conduct. Accordingly, Mr. Hassan received a Public Censure.

SUSPENSION

ARIZONA

Matthew Sansone (Scottsdale, Arizona): In January 2022, CFP Board issued an administrative order suspending Mr. Sansone's right to use the CFP® certification marks for one year and one day. This sanction followed Mr. Sansone's failure to file an Answer to CFP Board's Complaint within the required timeframe. CFP Board's Complaint alleged that Mr. Sansone violated Standard E.5 of CFP Board's Code of Ethics and Standards of Conduct when he failed to satisfy his Duty of Cooperation by refusing to respond to CFP Board's requests for information and a Notice of Failure to Cooperate. CFP Board sought to investigate criminal charges for Obstruction against Mr. Sansone that were filed on November 24, 2019.  Mr. Sansone 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. Sansone is deemed in default, and CFP Board issued an Administrative Order of Suspension. Mr. Sansone's administrative suspension was effective as of February 7, 2022, until February 8, 2023.

NEW JERSEY

Robert M. Ryerson (Freehold, New Jersey): In November 2021, CFP Board issued an order in which Mr. Ryerson received a one-year-and-one-day suspension of his right to use the CFP® certification marks. This discipline followed an appeal of an April 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. Ryerson had two outstanding federal tax liens issued against him in 2012 and 2016 by the Internal Revenue Service (IRS) that totaled over $76,000 combined.  Because the 2012 tax lien expired, $31,000 of Mr. Ryerson's debt will remain unpaid.  Mr. Ryerson had no plan in place to repay the remaining tax lien and the IRS listed the debt as "uncollectible." The Commission also found that Mr. Ryerson had over $100,000 in additional unpaid federal taxes outstanding, at least two consumer debt judgments against him, and considerable student loan balances that were in collections. The Enforcement Committee affirmed the Commission's determination that Mr. Ryerson's conduct violated Rule 6.5 of the Rules of Conduct, providing grounds for sanction. CFP Board issued a suspension for one year and one day. Mr. Ryerson's suspension is effective from November 9, 2021, until November 10, 2022.

PERMANENT BAR

ILLINOIS

James E. Stahel (Crystal Lake, Illinois): In January 2022, CFP Board issued an administrative order permanently barring Mr. Stahel from applying for or obtaining the CFP® certification marks. This sanction followed Mr. Stahel's failure to timely file an Answer to CFP Board's Complaint alleging that Mr. Stahel violated Standard E.5 of CFP Board's Code of Ethics and Standards of Conduct by refusing to cooperate with a CFP Board investigation. CFP Board sought to investigate Mr. Stahel's January 25, 2021 Consent Order of Revocation with the Illinois Securities Department. Mr. Stahel 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. Stahel is deemed in default, and CFP Board issued an Administrative Order of Permanent Bar. Mr. Stahel's administrative permanent bar was effective as of February 7, 2022.

REVOCATION

CALIFORNIA

Gary Bowman (Huntington Beach, California): In February 2022, CFP Board issued an administrative order permanently revoking Mr. Bowman's right to use the CFP® certification marks. This sanction followed Mr. Bowman's failure to file an Answer to CFP Board's Complaint within the required timeframe. CFP Board's Complaint alleged that Mr. Bowman entered into a Letter of Acceptance, Waiver, and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), in which he was suspended from association with any FINRA member in any capacity for three months and issued a $10,000 fine for violating FINRA Rules 2111 and 2010 by engaging in an unsuitable pattern of short-term trading of Unit Investment Trusts (UITs) in customer accounts, and making recommendations that caused his customers to incur unnecessary sales charges and were unsuitable in view of the frequency and cost of the transactions. Mr. Bowman did not report the AWC to CFP Board as required. CFP Board's Complaint alleged that Mr. Bowman's conduct violated Rules 4.3 and 4.5 of the Rules of Conduct and Standard E.3 of the Code of Ethics and Standards of Conduct. Mr. Bowman failed to file an Answer to the Complaint with CFP Board 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. Bowman is deemed in default, and CFP Board issued an Administrative Order of Revocation. Mr. Bowman's administrative revocation was effective as of February 3, 2022.

FLORIDA

Steven F. Libby (Ocala, Florida): In December 2021, CFP Board issued an administrative order permanently revoking Mr. Libby's right to use the CFP® certification marks. This sanction followed Mr. Libby's failure to file an Answer to CFP Board's Complaint within the required timeframe. CFP Board's Complaint alleged that Mr. Libby violated Rule 6.5 of the Rules of Conduct as a result of outstanding federal tax liens covering tax year 2014 and a total outstanding tax debt of approximately $186,000. Mr. Libby 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. Libby is deemed in default, and CFP Board issued an Administrative Order of Revocation. Mr. Libby's administrative revocation was effective as of January 6, 2022.

SOUTH CAROLINA

Dean Perez Elmer (Greenville, South Carolina): In January 2022, CFP Board issued an administrative order permanently revoking Mr. Elmer's right to use the CFP® certification marks. This sanction followed Mr. Elmer's failure to file an Answer to CFP Board's Complaint within the required timeframe. CFP Board's Complaint alleged that Mr. Elmer violated Rule 6.5 of CFP Board's Rules of Conduct when he filed for Chapter 7 Bankruptcy in 2019, his second bankruptcy filing, which demonstrated an inability to manage responsibly Mr. Elmer's financial affairs. Mr. Elmer 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. Elmer has been deemed in default, and CFP Board issued an Administrative Order of Revocation. Mr. Elmer's administrative revocation was effective as of February 7, 2022.

TEXAS

Daniel G. Dillard (Austin, Texas): In December 2021, the Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Dillard received a revocation of his certification and right to use the CFP® certification marks. The Commission issued its order after determining Mr. Dillard did not perform professional services with dedication to the lawful objectives of his employer in violation of Rule 5.1 of CFP Board's Rules of Conduct when his former firm filed a Form U-5 indicating that Mr. Dillard was terminated due to a violation of the firm's signature policy. Mr. Dillard also violated Rule 6.5 of CFP Board's Rules of Conduct by demonstrating a consistent inability to manage his personal finances when he: (a) incurred tax liability that he failed to timely pay to the Internal Revenue Service (IRS) in the amount of $271,682.69 for tax years 2012 through 2018, resulting in three IRS tax liens; (b) incurred tax liability that he failed to pay the State of Texas resulting in a state tax lien filed against him in 2018; (c) fell into arrears on his court-ordered child support payments resulting in a state court judgment exceeding $20,556; (d) failed to monitor his bank account balances resulting in overdraft fees each year between 2016 and 2020; and (e) was sued over consumer credit card debts to recover over $56,000 in outstanding debt. Mr. Dillard also violated Rule 4.3 of CFP Board's Rules of Conduct when the Financial Industry Regulatory Authority, Inc. (FINRA) issued to him a Cautionary Action Letter (CAL) for failing to disclose the Texas state tax lien on his Form U-4 in a timely fashion. Mr. Dillard then made a misleading statement to CFP Board in violation of Rule 6.2 of the Rules of Conduct when he told CFP Board during its investigation that FINRA found "no fault," when FINRA issued to him a CAL finding a violation of FINRA's By-Laws.  Furthermore, Mr. Dillard was previously disciplined and suspended for six months by CFP Board in 2017 after he: (1) was terminated from another former firm for falsifying a signed document concerning a commission split arrangement with a bank (he altered the commission distribution percentages and reused the bank president's signature), for which he was fined and suspended by FINRA; (2) failed to report this professional discipline to CFP Board; and (3) made false representations to CFP Board stating he had never been terminated for cause when his firm had terminated him. The Commission found that Mr. Dillard's conduct establishes a pattern of conduct that reflects adversely on his integrity or fitness as a certificant, upon the CFP® marks, and upon the profession in violation of Rule 6.5 of the Rules of Conduct. Accordingly, the Commission issued to Mr. Dillard a revocation, effective as of January 19, 2022.

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 92,000 people in the United States.

SOURCE Certified Financial Planner Board of Standards, Inc.