CFP Board Imposes Public Sanctions on Five Individuals

WASHINGTON, Nov. 10, 2023 /PRNewswire/ -- Certified Financial Planner Board of Standards, Inc. (CFP Board) announced today public sanctions against five current or former CFP® professionals, effective immediately or on the date noted in each case. CFP Board public sanctions include, in order of increasing severity, Public Censures, Suspensions, Temporary Bars, Permanent Bars and Revocations of the right to use the CFP Board certification 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, a CFP® professional may receive 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® certification status and summaries of and links to orders issuing public sanctions to current or former CFP® professionals.
• 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 Five Individuals

A short summary of each sanction can be found below.

PUBLIC CENSURE 

NEW YORK

Paul A. Spero (East Syracuse, New York): In July 2023, CFP Board issued an order in which Mr. Spero received a Public Censure. This sanction followed an appeal of a December 2022 order of the Disciplinary and Ethics Commission. The CFP Board Appeals Commission affirmed the Disciplinary and Ethics Commission's determination that Mr. Spero violated Rule 4.3 of the Rules of Conduct, which provides that a certificant shall comply with applicable regulatory requirements governing professional services to the client, and Standard E.5 of the Code of Ethics and Standards of Conduct, which prohibits a CFP® professional from making false or misleading representations to CFP Board. Mr. Spero entered into a Letter of Acceptance, Waiver and Consent with the Financial Industry Regulatory Authority (FINRA) in April 2021, wherein he agreed that he exercised discretion without written authorization in approximately 70 customer accounts totaling 105 transactions between August 2017 and August 2018 in violation of NASD Rule 2150(b) and FINRA Rule 2010. The Appeals Commission also affirmed the Disciplinary and Ethics Commission's finding that Mr. Spero violated Standard E.5 of the Code of Ethics and Standards of Conduct by submitting an inaccurate ethics declaration to CFP Board when he answered "No" to Question 7 on his February 12, 2021, Ethics Declaration, despite knowing that he was the subject of an investigation by FINRA. Pursuant to the decision of the Appeals Commission, CFP Board issued Mr. Spero an Order of Public Censure.

SUSPENSION

MINNESOTA

Daniel R. Bishop (New Prague, Minnesota): In June 2022, the Disciplinary and Ethics Commission issued an order in which Mr. Bishop received a suspension for one year of his right to use the CFP® certification marks. The Disciplinary and Ethics Commission imposed this sanction after Mr. Bishop was convicted of a misdemeanor offense in May 2019, following three prior convictions for similar misdemeanor offenses, predating Mr. Bishop's status as a CFP® certificant. Mr. Bishop also failed to timely disclose the 2019 conviction to CFP Board within 30 days and incorrectly stated on his 2019 CFP Board Ethics Declaration that he had not been charged with a misdemeanor, although he had been charged at this time. The Disciplinary and Ethics Commission determined that Mr. Bishop's conduct violated Rule 6.5 of the Rules 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 CFP® professional, upon the CFP® marks or upon the profession, and Rule 6.2 of the Rules of Conduct, which provides that a CFP® professional shall meet all CFP Board requirements to retain the right to use the CFP® marks. Accordingly, the Disciplinary and Ethics Commission issued to Mr. Bishop a suspension for one year. That decision was subsequently affirmed on appeal by the Appeals Commission. Mr. Bishop's suspension is effective from October 1, 2023, through October 1, 2024.

NEBRASKA

John T. Lund Jr. (Norfolk, Nebraska): In September 2023, the Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Lund received a suspension of his right to use the CFP® certification marks for four months. In the order, the Commission found that Mr. Lund 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, and Rule 5.1 of the Rules of Conduct, which provides that a CFP® professional who is an employee/agent shall perform professional services with dedication to the lawful objectives of the employer/principal. On April 18, 2022, Mr. Lund entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) in which he accepted and consented to entry of FINRA's findings, without admitting or denying them, including findings that "in March 2020, [Respondent] forged an electronic signature on two account transfer forms, two discretionary authority amendments and two new account applications without permission and electronically signed a total of seven account applications and transfer forms for four other customers without permission. Therefore, [Mr.] Lund violated FINRA Rule 2010 and FINRA Rules 4511 and 2010," which are rules related to forgery, falsification and books and records. In the AWC, Mr. Lund consented to FINRA imposing sanctions, which included a four-month suspension from associating with any FINRA member in all capacities and a $5,000 fine. The Commission issued to Mr. Lund an Order of Suspension of four months. Mr. Lund's suspension is effective from October 9, 2023, through February 9, 2024. To read the Commission's order, click here: Case History 44328.

OHIO

Andrew Todd Roseberry (Dublin, Ohio): In September 2023, the Disciplinary and Ethics Commission (Commission) issued an order suspending Mr. Roseberry's right to use the CFP Board certification marks for two years and requiring he complete 30 hours of additional Continuing Education, including at least 2 hours on the topic of Ethics. The Commission found that Mr. Roseberry violated Rule 4.3 of CFP Board's Rules of Conduct, which provides that a certificant shall be in compliance with applicable regulatory requirements governing professional services provided to the client. In December 2022, Mr. Roseberry entered into a Consent Order with the Ohio Department of Commerce, Division of Securities, consenting to findings that he violated Ohio Securities Laws by providing false information on his Form U4s and by failing to update his Form U4s to reflect his outside business activity — for approximately 17 years — with respect to an investment fund that Respondent comanaged with his partner. Investors in the fund included customers of Respondent's firm, of which Respondent was the Chief Compliance Officer (CCO). Respondent and his partner periodically deposited their personal funds into management accounts so the investment fund could issue distributions to its investors, concealing from those investors that their investments in the fund had been essentially worthless since 2008. In the Consent Order, Respondent agreed to accept a 14-day suspension, to pay $768,110.00 in restitution to investors and to cease and desist from acting in the role of a supervisory person, control person, or CCO for any investment adviser firm or securities dealer firm for the term of his natural life. The Commission issued to Mr. Roseberry an Order of Suspension of Two Years and Continuing Education. Mr. Roseberry's suspension is effective from October 16, 2023, through October 16, 2025. To read the Commission's order, click here: Case History 35986.

PERMANENT BAR

NEW JERSEY

Matthew Stevick (Mantua, New Jersey): In May 2023, CFP Board issued an administrative order permanently barring Mr. Stevick from applying for or obtaining the CFP Board certification marks. This sanction followed Mr. Stevick's relinquishment of his certification and failure to file an Answer to CFP Board's Complaint within the required time frame. CFP Board alleged that Mr. Stevick violated Standard E.5 of the 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. As set forth in the Complaint, CFP Board sought to investigate Mr. Stevick's termination from his firm after allegations that he posted investment-related commentary on social media without preapproval from the firm and mishandled confidential client information. Mr. Stevick 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. Stevick was deemed in default, and CFP Board issued an Administrative Order of Permanent Bar. A Notice of Appeal filed by Mr. Stevick was dismissed as untimely by CFP Board's Appeals Commission. Mr. Stevick's administrative permanent bar was effective as of August 23, 2023.

ABOUT CFP BOARD 

CFP Board is the professional body for personal financial planners in the U.S. CFP Board consists of two affiliated organizations focused on advancing the financial planning profession for the public's benefit. CFP Board of Standards sets and upholds standards for financial planning and administers the prestigious CERTIFIED FINANCIAL PLANNER™ certification — widely recognized by the public, advisors and firms as the standard for financial planners — so that the public has access to the benefits of competent and ethical financial planning. CFP® certification is held by nearly 100,000 people in the U.S. CFP Board Center for Financial Planning addresses diversity and workforce development challenges and conducts and publishes research that adds to the financial planning profession's body of knowledge.

SOURCE CERTIFIED FINANCIAL PLANNER BOARD OF STANDARDS, INC