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CFP Board Censures Improper CFP® Professional Conduct

Feb 15, 2012
 Certified Financial Planner Board of Standards, Inc. announces public disciplinary actions against the following individuals’ right to use the CFP® certification marks, effective immediately or on the date noted in each case. This release contains disciplinary actions relating to 20 CFP® professionals. The 20 disciplinary actions are comprised of 6 revocations, 4 suspensions, 1 interim suspension and 9 letters of admonition.

Public disciplinary actions taken by CFP Board, in order of increasing severity, include letters of admonition, suspensions and permanent revocations. The basis for each decision can be found in a Disciplinary Action Report below and on CFP Board’s Web site. The public may check on an individual’s disciplinary history and certification status with CFP Board at www.CFP.net/verify.

CFP Board’s Standards of Professional Conduct, which includes the Code of Ethics and Professional Responsibility, Rules of Conduct and Financial Planning Practice Standards, sets forth the ethical standards for financial planners who hold the CFP® certification. CFP Board enforces its ethical standards by investigating incidents of alleged unethical behavior, and following the procedures established in CFP Board’s Disciplinary Rules and Procedures. In cases where violations are found, CFP Board may impose discipline ranging from a private censure or public letter of admonition to the suspension or revocation of the right to use the CFP® marks. The Disciplinary Rules and Procedures set forth a fair process for investigating matters and imposing discipline where necessary.

CFP Board’s enforcement process is a critical consumer protection. CFP® professionals agree to abide by CFP Board’s Standards of Professional Conduct, which sets forth their ethical responsibilities to the public, clients and employers. CFP® professionals agree to act fairly and diligently when providing clients with financial planning advice and services, putting the clients’ interests first.

These actions result from final decisions of the Disciplinary and Ethics Commission. The Commission meets three times a year and reviews all cases on a case-by-case basis, taking into account the details specific to an individual case. While CFP Board has attempted to capture the details relevant to each decision, the summary nature of these releases may omit certain details affecting the decision. Accordingly, the decisions and/or rationale described in the releases may not apply to other cases reviewed by the Commission or reflect the Commission’s future interpretation or application of the Standards.


STATE NAME LOCATION DISCIPLINE
California Robin Davidson Santa Barbara Revocation
California Stephen M. Rice Los Gatos Suspension
Colorado Martin T. Streetman, CFP® Castle Rock Letter of Admonition
Connecticut Kyle Egress, CFP® West Hartford Letter of Admonition
Florida Sandee G. Tanner Brooksville Revocation
Florida Christopher F. Wendland, CFP® Fort Myers Letter of Admonition
Illinois Miyoung Yook, CFP® Northbrook Letter of Admonition
Michigan Rex D. Foster East Lansing Suspension
Nevada Deborah D. Carter, CFP® Las Vegas Letter of Admonition
Nevada Leslie A. Morpeth las Vegas Revocation
New York William V. Canale, II Niskayuna Suspension
Oklahoma Michael P. Dunham, CFP® Oklahoma City Letter of Admonition
Oregon Timothy T. Bean Portland Revocation
Tennessee Martha J. C. Hawk Blountville Interim Suspension
Texas Charles I. Alvarez Houston Revocation
Texas David L. Rhodes, CFP® Bryan Letter of Admonition
Texas Roger D. Stevenson San Benito Suspension
Virginia Jacqueline Hanson, CFP® Waterford Letter of Admonition
Wisconsin Eric D. Kallies Fitchburg Revocation
Wisconsin Craig M. Siminski, CFP® Green Bay Letter of Admonition

LETTERS OF ADMONITION

COLORADO

Martin T. Streetman, CFP® (Castle Rock): In December 2011, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board issued a Letter of Admonition to Mr. Streetman. This discipline followed CFP Board’s investigation of a customer complaint filed against Mr. Streetman and Mr. Streetman’s 2010 Chapter 7 Bankruptcy. The Commission determined that Mr. Streetman failed to diligently execute a client’s requests, and that he demonstrated an inability to manage his personal finances by filing a Chapter 7 Bankruptcy and thus, engaged in conduct that reflects adversely on his integrity and fitness as a CFP® professional, upon the CFP® certification marks, and upon the profession. The Commission determined that Mr. Streetman’s conduct violated Rules 4.4 and 6.5 of the Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). In accordance with Article 4.2 of the Disciplinary Rules, the Commission admonished Mr. Streetman with regard to the above-mentioned conduct.

CONNECTICUT

Kyle Egress, CFP® (West Hartford): In December 2011, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board issued a Letter of Admonition to Mr. Egress. This discipline followed CFP Board’s investigation of allegations that he: 1) misrepresented that he had completed a mandatory continuing education course by allowing another representative to improperly complete the course on his behalf, in violation of National Association of Securities Dealers (“NASD,” now known as the Financial Industry Regulatory Authority, Inc. or “FINRA”) Conduct Rule 2110; 2) signed a FINRA Letter of Acceptance, Waiver and Consent wherein he consented to a $5,000 fine and a suspension from association with any FINRA member in any capacity for a period of one month; and 3) failed to disclose the FINRA suspension to CFP Board. The Commission determined that Mr. Egress’s conduct violated Rules 102, 606(a), 606(b) and 607 of CFP Board’s Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Articles 3(a), 3(d) and 3(e) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). In accordance with Article 4.2 of the Disciplinary Rules, the Commission admonished Mr. Egress with regard to the above-mentioned conduct.

FLORIDA

Christopher F. Wendland, CFP® (Fort Myers): In December 2011, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board issued a Letter of Admonition to Mr. Wendland. This discipline followed CFP Board’s investigation of Mr. Wendland’s 2010 Chapter 7 Bankruptcy. The Commission determined that Mr. Wendland demonstrated an inability to manage his personal finances by filing for bankruptcy and thus, engaged in conduct that reflects adversely on his integrity and fitness as a CFP® professional, upon the CFP® certification marks, and upon the profession. The Commission determined that Mr. Wendland’s conduct violated Rule 6.5 of CFP Board’s Rules of Conduct and provided grounds for discipline pursuant to Articles 3(a) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). In accordance with Article 4.2 of the Disciplinary Rules, the Commission admonished Mr. Wendland with regard to the above-mentioned conduct.

ILLINOIS

Niyoung Yook, Jr., CFP® (Northbrook): In December 2011, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board issued a Letter of Admonition to Ms. Yook. This discipline followed CFP Board’s investigation of Ms. Yook’s 2009 Chapter 7 Bankruptcy. The Commission determined that Ms. Yook demonstrated an inability to manage her personal finances by filing for bankruptcy and thus, engaged in conduct that reflects adversely on her integrity and fitness as a CFP® professional, upon the CFP® certification marks, and upon the profession. The Commission determined that Ms. Yook’s conduct violated Rule 6.5 of CFP Board’s Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). In accordance with Article 4.2 of the Disciplinary Rules, the Commission admonished Ms. Yook with regard to the above-mentioned conduct.

NEVADA

Deborah D. Carter, CFP® (Las Vegas): In December 2011, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board issued a Letter of Admonition to Ms. Carter. This discipline followed CFP Board’s investigation of Ms. Carter’s 2010 Chapter 7 Bankruptcy. The Commission determined that Ms. Carter demonstrated an inability to manage her personal finances by filing for bankruptcy and thus, engaged in conduct that reflects adversely on her integrity and fitness as a CFP® professional, upon the CFP® certification marks, and upon the profession. The Commission determined that Ms. Carter’s conduct violated Rule 6.5 of CFP Board’s Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). In accordance with Article 4.2 of the Disciplinary Rules, the Commission admonished Ms. Carter with regard to the above-mentioned conduct.

OKLAHOMA

Michael P. Dunham, CFP® (Oklahoma City): In December 2011, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board issued a Letter of Admonition to Mr. Dunham. This discipline followed CFP Board’s investigation of allegations that Mr. Dunham violated National Association of Securities Dealers (“NASD,” now known as the Financial Industry Regulatory Authority, Inc. or “FINRA”) Conduct Rules by offering to personally refund a client’s margin costs incurred due to withdrawals in the client’s account and entering orders for shares of stock in 176 accounts for 134 customers without written authorization from the customers or acceptance of the accounts as discretionary by his firm. Respondent's broker-dealer terminated him for his actions relating to the margin balance and the purchase of the stock. Respondent enter into a Letter of Acceptance, Waiver and Consent with FINRA wherein he accepted FINRA’s findings and consented to a $10,000 fine and suspension from association with any FINRA member for a period of 20 business days. The Commission determined that Mr. Dunham’s conduct violated Rules 201, 406, 606(a), 606(b) and 607 of CFP Board’s Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Articles 3(a) and 3(e) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). In accordance with Article 4.2 of the Disciplinary Rules, the Commission admonished Mr. Dunham with regard to the above-mentioned conduct.

TEXAS

David L. Rhodes, CFP® (Bryan): In December 2011, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board issued a Letter of Admonition to Mr. Rhodes. This discipline followed CFP Board’s investigation of allegations that Mr. Rhodes’ firm terminated him when he issued two promissory notes to a client in connection with a real estate-related outside business activity without prior approval from his firm and in violation of National Association of Securities Dealers (“NASD,” now known as the Financial Industry Regulatory Authority, Inc. or “FINRA”) Rule 2370. The Commission determined that Mr. Rhodes’ conduct violated Rules 201, 406, 407(a), 409, 606(a) and 607 of CFP Board’s Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). In accordance with Article 4.2 of the Disciplinary Rules, the Commission admonished Mr. Rhodes with regard to the above-mentioned conduct.

VIRGINIA

Jacqueline Hanson, CFP® (Bend): In December 2011, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board issued a Letter of Admonition to Ms. Hanson. This discipline followed CFP Board’s investigation of Ms. Hanson’s 2010 Chapter 13 Bankruptcy. The Commission determined that Ms. Hanson demonstrated an inability to manage her personal finances by filing for bankruptcy and thus, engaged in conduct that reflects adversely on her integrity and fitness as a CFP® professional, upon the CFP® certification marks, and upon the profession. The Commission determined that Ms. Hanson’s conduct violated Rule 6.5 of CFP Board’s Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). In accordance with Article 4.2 of the Disciplinary Rules, the Commission admonished Ms. Hanson with regard to the above-mentioned conduct.

WISCONSIN

Craig M. Siminski, CFP® (Green Bay): In December 2011, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board issued a Letter of Admonition to Mr. Siminski. This discipline followed CFP Board’s investigation of Mr. Siminski’s 2010 Chapter 7 Bankruptcy. The Commission found that Mr. Siminski demonstrated an inability to manage his personal finances by filing for Chapter 7 Bankruptcy and thus, engaged in conduct that reflects adversely on his integrity and fitness as a CFP® professional, upon the CFP® certification marks, and upon the profession. The Commission determined that Mr. Siminski’s conduct violated Rule 6.5 of the Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). In accordance with Article 4.2 of the Disciplinary Rules, the Commission admonished Mr. Siminski with regard to the above-mentioned conduct.

SUSPENSIONS

CALIFORNIA

Stephen M. Rice (Los Gatos): In November 2011, following a hearing before CFP Board’s Appeals Committee, CFP Board issued an order affirming the Disciplinary and Ethics Commission’s (“Commission”) decision to suspend Mr. Rice’s right to use the CFP® certification marks for three years. The Commission found that, while in a financial planning relationship with three clients, Mr. Rice failed to: 1) provide a written plan to one client pursuant to the terms of the financial planning agreement; 2) properly present his insurance recommendations and ensure that the recommendations met the three clients’ expectations with respect to their ability to “premium offset” in five years; 3) perform adequate investigation and analysis of the insurance needs of the three clients prior to recommending that they purchase insurance policies; and 4) perform adequate cash flow analysis regarding the three clients’ ability to pay the premiums for the insurance policies he recommended. As a result of its findings, the Commission determined that Mr. Rice’s conduct violated Rules 201, 202, 606(b), 607 and 703 of the Code of Ethics and Professional Responsibility and Financial Planning Practice Standards 300-1 and 400-3, providing grounds for discipline under Articles 3(a) and 3(b) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). The Appeals Committee affirmed the Commission’s findings of fact, rule violations and issuance of a three-year suspension, in accordance with Article 4.3 of the Disciplinary Rules, of Mr. Rice’s right to use the CFP® certification marks. Mr. Rice’s suspension is effective from November 22, 2011 until November 22, 2014.

MICHIGAN

Rex D. Foster (East Lansing): In November 2011, following a hearing before CFP Board’s Appeals Committee, CFP Board issued an order suspending Mr. Foster’s right to use the CFP® certification marks for one year and one day. CFP Board’s Disciplinary and Ethics Commission (“Commission”) found that, while in a financial planning relationship with a client, Mr. Foster: 1) failed to disclose in the financial planning agreement that his employer had a material conflict of interest because it maintained “preferred supplier” relationships in which it received financial bonuses for selling the “preferred suppliers’” products that were in excess of the financial compensation it received for selling other products; 2) failed to provide the client with sufficient alternatives to his investment recommendations; 3) implemented his investment recommendations prior to presenting the client with the initial financial plan; and 4) placed a majority of the client’s assets in deferred annuities, which did not provide a regular income stream to meet the client’s projected expenses and did not meet their goal of minimizing estate taxes. As a result of its findings, the Commission determined that Mr. Foster’s conduct violated Rules 102, 201, 202, 606(b), 607, 701 and 703 of the Code of Ethics and Professional Responsibility and Financial Planning Practice Standards 100-1, 200-1, 300-1, 400-1 and 400-2, providing grounds for discipline under Articles 3(a) and 3(b) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). The Appeals Committee affirmed the Commission’s findings of fact and rule violations and imposed a one year and one day suspension, in accordance with Article 4.3 of the Disciplinary Rules, of Mr. Foster’s right to use the CFP® certification marks. Mr. Foster’s suspension is effective from November 22, 2011 until November 23, 2012.

NEW YORK

William V. Canale, II (Niskayuna): In December 2011, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board issued an order suspending Mr. Canale’s right to use the CFP® certification marks for five years. The suspension followed CFP Board’s investigation of a Financial Industry Regulatory Authority, Inc. (“FINRA”, formerly known as the National Association of Securities Dealers or “NASD”) investigation and regulatory action. The Commission found that Mr. Canale: 1) submitted false information on his firm’s periodic compliance questionnaires on several occasions when he indicated that he did not act in a fiduciary capacity for firm clients or have a financial interest in any client accounts when, in fact, he did; 2) violated NASD Conduct Rule 2110; and 3) entered into a settlement with FINRA wherein he consented to a one-year suspension from association with any FINRA member in any capacity and a $10,000 fine. The Commission determined that Mr. Canale’s conduct violated Rules 102, 201, 408, 606(a), 606(b) and 607 of CFP Board’s Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Articles 3(a) and 3(d) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). In accordance with Article 4.3 of the Disciplinary Rules, the Commission suspended Mr. Canale’s right to use the CFP® certification marks for five years. Mr. Canale’s suspension is effective from December 28, 2011 to December 28, 2016.

TEXAS

Roger D. Stevenson (San Benito): In December 2011, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board issued an order suspending Mr. Stevenson’s right to use the CFP® certification marks for 180 days. The suspension followed CFP Board’s investigation of a Financial Industry Regulatory Authority, Inc. (“FINRA”, formerly known as the National Association of Securities Dealers or “NASD”) regulatory action. The Commission found that Mr. Stevenson: 1) exercised unauthorized discretion in client accounts by failing to confirm clients’ authorization of trades on the dates the trades were executed; 2) exercised unauthorized discretion in client accounts by executing trades without written authorization to exercise discretion and acceptance of the accounts as discretionary by his firm; 3) failed to execute a trade in a client’s account after being directed to do so by the client; 4) violated NASD Conduct Rules 2510(b) and 2110; and 5) entered into a Letter of Acceptance, Waiver and Consent with FINRA wherein he consented to a 20 business-day suspension from association with any FINRA member in any capacity and a $7,500 fine. The Commission determined that Mr. Stevenson’s conduct violated Rules 201, 406, 606(a), 606(b), 607 and 701 of CFP Board’s Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Articles 3(a), 3(d) and 3(e) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). In accordance with Article 4.3 of the Disciplinary Rules, the Commission suspended Mr. Stevenson’s right to use the CFP® certification marks for 180 days. Mr. Stevenson’s suspension is effective from December 28, 2011 to June 25, 2012.

INTERIM SUSPENSION

TENNESSEE

Martha J.C. Hawk (Blountville): In December 2011, CFP Board issued Ms. Hawk an interim suspension of her right to use the CFP® certification marks. CFP Board initiated the interim suspension proceedings following Ms. Hawk’s September 2011 no-contest plea to one felony count of theft of $10,000 or more but less than $60,000, and one felony count of forgery. Ms. Hawk failed to respond to CFP Board’s Order to Show Cause within 20 calendar days of the date of service, as required by Article 5.1 of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). Accordingly, pursuant to Article 5.4 of the Disciplinary Rules, the allegations set forth in the Order to Show Cause were deemed admitted, and CFP Board issued an interim suspension order to Ms. Hawk. Under the interim suspension order, Ms. Hawk’s right to use the CFP® certification marks is suspended pending CFP Board’s completed investigation, and possible further disciplinary proceedings. The interim suspension order became effective on December 21, 2011.

REVOCATIONS

CALIFORNIA

Robin Davidson (Santa Barbara): In December 2011, CFP Board issued an order permanently revoking Mr. Davidson’s right to use the CFP® certification marks. This discipline followed CFP Board’s investigation of allegations that Mr. Davidson: 1) used an outside email account to avoid detection by his broker-dealer’s internal controls; 2) recommended that his clients invest in a managed currency program (“Fund”) that was not approved by his broker-dealer; 3) failed to provide his broker-dealer with notice of his involvement in private securities transactions; 4) informed his clients that the Fund was a safe investment when, in fact, it was not safe; 5) did not inform his clients that the Fund was highly leveraged, operated on margin and was not approved by his broker-dealer; 6) did not disclose his compensation arrangement with the Fund’s managers to his clients or his broker-dealer; 7) signed a customer’s name to account-related documents without the customer’s knowledge or consent on at least 16 occasions; 8) was suspended by the Financial Industry Regulatory Authority, Inc. (“FINRA”, formerly known as the National Association of Securities Dealers or “NASD”) for violating NASD Conduct Rules 3040 and 2110; and 9) had his securities license revoked by the Maryland Securities Division for failing to respond to the Maryland Attorney General’s Order to Show Cause. The Commission determined that Mr. Davidson’s conduct violated Rules 102, 201, 401(a), 406, 407(a), 606(a), 606(b), 607, 701 and 704 of CFP Board’s Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Articles 3(a), 3(d) and 3(e) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). In accordance with Article 4.4 of the Disciplinary Rules, the Commission permanently revoked Mr. Davidson’s right to use the CFP® certification marks.

FLORIDA

Sandee G. Tanner (Brooksville): In December 2011, CFP Board issued an order permanently revoking Ms. Tanner’s right to use the CFP® certification marks. This discipline followed CFP Board’s investigation of Ms. Tanner’s 2011 Chapter 13 Bankruptcy. CFP Board’s Complaint alleged that Ms. Tanner’s conduct violated Rules 6.1 and 6.5 of CFP Board’s Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). Ms. Tanner failed to file an Answer to CFP Board’s Complaint within 20 calendar days of the date of service, as required by Article 7.3 of CFP Board’s Disciplinary Rules. In accordance with Article 7.4 of the Disciplinary Rules, the allegations set forth in the Complaint were deemed admitted, and CFP Board issued an Order of Revocation.

NEVADA

Leslie A. Morpeth (Las Vegas): In December 2011, CFP Board issued an order permanently revoking Ms. Morpeth’s right to use the CFP® certification marks. This discipline followed CFP Board’s investigation of Ms. Morpeth’s 2009 Chapter 7 Bankruptcy. CFP Board’s Complaint alleged that Ms. Morpeth’s conduct violated Rule 6.5 of CFP Board’s Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). Ms. Morpeth failed to file an Answer to CFP Board’s Complaint within 20 calendar days of the date of service, as required by Article 7.3 of CFP Board’s Disciplinary Rules. In accordance with Article 7.4 of the Disciplinary Rules, the allegations set forth in the Complaint were deemed admitted, and CFP Board issued an Order of Revocation.

OREGON

Timothy T. Bean (Portland): In December 2011, CFP Board issued an order permanently revoking Mr. Bean’s right to use the CFP® certification marks. This discipline followed CFP Board’s investigation of allegations that Mr. Bean: 1) failed to repay the balances due on a supplementary training agreement, program agreement, and retention award he entered into with a former employer; 2) failed to repay the balance due on a promissory note issued by a second former employer; and 3) filed for Chapter 7 Bankruptcy, demonstrating an inability to manage his personal finances. CFP Board’s Complaint alleged that Mr. Bean’s conduct violated Rule 607 of CFP Board’s Code of Ethics and Professional Responsibility and Rule 6.5 of CFP Board’s Rules of Conduct, providing grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). Mr. Bean failed to file an Answer to CFP Board’s Complaint within 20 calendar days of the date of service, as required by Article 7.3 of CFP Board’s Disciplinary Rules. In accordance with Article 7.4 of the Disciplinary Rules, the allegations set forth in the Complaint were deemed admitted, and CFP Board issued an Order of Revocation.

TEXAS

Charles I. Alvarez (Toledo): In January 2012, CFP Board issued a permanent revocation of Mr. Alvarez’s right to use the CFP® certification marks. This discipline followed CFP Board’s investigation of allegations that Mr. Alvarez: 1) communicated misleading information to a client when he misrepresented the value of the client’s account by commingling his own funds with the client’s; 2) commingled a client’s property with his own property when Mr. Alvarez reimbursed the client for the client’s losses; and 3) concealed the client’s losses from his firm, resulting in his termination for this conduct. CFP Board determined that Mr. Alvarez’s conduct violated Rules 2.1, 3.8, 4.4, 5.1 and 6.5 of CFP Board’s Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). In accordance with Article 4.4 of the Disciplinary Rules, CFP Board permanently revoked Mr. Alvarez’s right to use the CFP® certification marks.

WISCONSIN

Eric D. Kallies (Fitchburg): In December 2011, CFP Board issued an order permanently revoking Mr. Kallies’ right to use the CFP® certification marks. This discipline followed CFP Board’s investigation of allegations that Mr. Kallies: 1) gave a PowerPoint presentation that was misleading to clients due to omissions and misrepresentations of material facts; 2) failed to obtain prior approval from the Financial Industry Regulatory Authority, Inc. (“FINRA”) and from his firm to give the PowerPoint presentation; and 3) made unauthorized purchases and sales within a client’s account. Mr. Kallies entered into a Letter of Acceptance, Waiver and Consent with FINRA in which he consented to a suspension from association with any FINRA member in any capacity for 30 business days and a $15,000 fine. Mr. Kallies failed to notify CFP Board of his suspension, as required by Article 12.2 of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). CFP Board’s Complaint alleged that Mr. Kallies’ conduct violated Rules 102, 201, 406, 606(a), 606(b), 607 and 701 of CFP Board’s Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Articles 3(a), 3(d) and 3(e) of CFP Board’s Disciplinary Rules. Mr. Kallies failed to file an Answer to CFP Board’s Complaint within 20 calendar days of the date of service, as required by Article 7.3 of CFP Board’s Disciplinary Rules. In accordance with Article 7.4 of the Disciplinary Rules, the allegations set forth in the Complaint were deemed admitted, and CFP Board issued an Order of Revocation.



ABOUT CFP BOARD: The mission of Certified Financial Planner Board of Standards, Inc. is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning. The Board of Directors, in furthering CFP Board's mission, acts on behalf of the public, CFP® professionals and other stakeholders. CFP Board owns the certification marks CFP® , CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. CFP Board currently authorizes more than 64,000 individuals to use these marks in the U.S.

CONTACT:
Dan Drummond, Director of Public Relations
P: 202-379-2252
M: 202-550-4372
E: ddrummond@CFPBoard.org
Twitter: @CFPBoardmedia

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