Certified Financial Planner Board of Standards Censures Improper CFP™ Certificant Conduct
|Florida||Charles E. Foy||Saint Augustine||Revocation|
|Richard T. Salter||Boynton Beach/Juno Beach||Letter of Admonition|
|Illinois||Roger A. Householder||Park Ridge||Revocation|
|Kentucky||Brian A. Guilliom||Louisville||Letter of Admonition|
|Michigan||Kenneth M. Harb||Livonia/West Bloomfield||Suspension|
|Minnesota||Michael P. Kaselnak||Rochester||Letter of Admonition|
|Missouri||Richard A. Fitzer||St. Louis||Revocation|
|New Jersey||Edward Viano||Vineland||Suspension|
Public disciplinary actions taken by CFP Board, in order of decreasing severity, include permanent revocation, suspension or a letter of admonition.
Under terms of the revocations, Fitzer, Foy and Householder no longer have the right to use the CFP® certification marks.
CFP Board suspended the right of Harb, Hodgkiss and Viano to use the CFP® certification marks for a period of time.
In addition, CFP Board issued Guilliom, Kaselkak and Salter public letters of admonition.
These disciplinary actions were taken by the Board of Professional Review, a Board of CFP™ certificants that interprets and applies CFP Board's Code of Ethics and Professional Responsibility and Financial Planning Practice Standards as well as investigates, deliberates and takes appropriate action with respect to alleged violations of the Code of Ethics or Practice Standards by CFP® certificants. The basis for each decision can be found in the attached report. Consumers may check on a planner's disciplinary history and certification status with CFP Board at www.CFP.net.
Certified Financial Planner Board of Standards Inc., a professional regulatory organization, fosters professional standards in personal financial planning so that the public values, has access to and benefits from competent financial planning. CFP Board owns the certification marks CFP™, CERTIFIED FINANCIAL PLANNER™ and . These marks are awarded to individuals who successfully complete CFP Board's initial and ongoing certification requirements. CFP Board has authorized 39,402 individuals to use these marks in the United States. For more about CFP Board, visit www.CFP-Board.org.
DISCIPLINARY ACTION REPORT
REVOCATION OF RIGHT TO USE THE CFP CERTIFICATION MARKS
CFP Board has revoked the right of the following individuals to use the marks CFP™, CERTIFIED FINANCIAL PLANNER™ and as a result of their unethical, improper or illegal professional or personal conduct. Cases have been listed by state.
Charles E. Foy (Saint Augustine): In November 2001, Mr. Foy's right to use the CFP certification marks was permanently revoked after he failed to respond to CFP Board's October 2001 Complaint investigating his March 2001 no contest plea to a felony charge of sexual activity with a child by a person in familial or custodial authority, for which he was sentenced to 10 years in prison to be followed by 10 years of sex offender probation. Additionally, Mr. Foy failed to notify CFP Board of his criminal conviction within 10 calendar days as required by the Disciplinary Rules and Procedures. Due to Mr. Foy's failure to respond to CFP Board's Complaint, the allegations in the Complaint were deemed admitted and an Order of Revocation was issued.
Roger A. Householder (Park Ridge): In October 2001, CFP Board permanently revoked Mr. Householder's right to use the CFP marks after he failed to respond to its August 2001 Complaint investigating 1) a state consent order whereby his public accountant's license was placed on probation for one year as a result of his failure to timely account for investment funds received from a client and his holding himself out to the public as an investment advisor without being properly registered; 2) a state order barring him from offering or selling any securities in any form and barring him from rendering investment advice for a fee in or from that state, as a result of his offering and selling unregistered securities and engaging in unregistered investment advisory activity; and 3) a regulatory action by the Chicago Board Options Exchange. Mr. Householder failed to disclose the state bar and Chicago Board Options Exchange action to CFP Board as required. Due to Mr. Householder's failure to respond to CFP Board's Complaint, the allegations in the Complaint were deemed admitted and an Order of Revocation was issued.
Richard A. Fitzer (St. Louis): In March 2001, CFP Board permanently revoked Mr. Fitzer's CFP certification after he failed to respond to CFP Board's February 2001 Complaint investigating two related civil suits brought against him in 1992, alleging that he breached his fiduciary duty to clients, as well as his failure to disclose the civil suits to CFP Board as required. Mr. Fitzer also failed to respond adequately to CFP Board's Notice of Investigation. Due to Mr. Fitzer's failure to respond to CFP Board's Complaint, the allegations in the Complaint were deemed admitted and an Order of Revocation was issued.
Kenneth M. Harb (Livonia and West Bloomfield): In November 2001, CFP Board suspended Mr. Harb's right to use the CFP certification marks for a period of one year and one day as part of a settlement agreement reached during the course of CFP Board's investigation of four customer arbitrations and two customer complaints brought against Mr. Harb from 1991 to 1997, generally alleging unsuitability, churning, unauthorized trading and misrepresentation. Mr. Harb consented to findings that in each of the customer matters he violated Rule 102 of the Code of Ethics and Professional Responsibility in that he engaged in misrepresentations, that he violated Rule 201 in that he did not exercise reasonable and prudent judgment in providing professional services, and that he violated Rule 202 in that he did not act in the interests of his clients. In addition, Mr. Harb consented to findings that he violated Rule 406 in that he received unfair and unreasonable compensation and that he violated Rule 703 in that the recommendations were unsuitable for the client. Further, Mr. Harb consented to findings that he violated Rules 606 and 607 in that his actions reflected poorly on himself, his profession and other CFP certificants.
Edward Viano (Vineland): In November 2001, CFP Board suspended Mr. Viano's right to use the CFP marks for one year and one day after finding that he paid $20,000 to settle his portion of a 1998 class-action lawsuit that alleged misrepresentation, omission of material facts, fraud, negligence and breach of fiduciary duty related to limited partnership interests sold to customers who claimed $80 million in damages. The Board also found that Mr. Viano falsely attested on his Renewal Form that he had not been a defendant in a civil proceeding. In mitigation, the Board considered that the events took place several years ago. In aggravation, the Board considered that Mr. Viano did not cooperate with the investigation, was non-responsive and that he was contemptuous towards CFP Board, demonstrating a lack of respect for established CFP Board review procedures.
Thomas Hodgkiss (Madison): In November 2001, CFP Board suspended Mr. Hodgkiss' right to use the CFP certification marks for one year and one day after it discovered that in March 2001 he pleaded no contest to felony charges of homicide of an unborn child by intoxicated use of a vehicle and injury by intoxicated use of a vehicle, for which he was sentenced to 14 months in prison and more than eight years of extended supervision. Additionally, Mr. Hodgkiss failed to notify CFP Board of his criminal conviction within 10 days as required. In mitigation, the Hearing Panel considered that Mr. Hodgkiss was well respected at work and in the community and that he admitted his mistake.
LETTERS OF ADMONITION
The following individuals were found to have been in violation of CFP Board's Code of Ethics and Professional Responsibility. However, the violations did not rise to the level of revocation or suspension of their right to use the CFP certification marks.
Richard T. Salter (Boynton Beach and Juno Beach): In November 2001, CFP Board issued Mr. Salter a public letter of admonition following its investigation of a 1999 NASD arbitration alleging that he failed to properly supervise a registered representative who over-concentrated a client's account in a single unsuitable investment and of an October 2000 restriction of his state registration as an investment advisor, due to his collecting fees for unregistered activities as an investment advisor from 1993 through 1999. CFP Board found that there was an unsuitable concentration of a single investment in a client account, that Mr. Salter failed to properly supervise his subordinate's handling of that client's account, and that Mr. Salter admitted to operating as a Registered Investment Adviser without registration. In mitigation, CFP Board found that Mr. Salter was active in his community and profession. In aggravation, CFP Board found that Mr. Salter had obvious disdain for authority, that he was four months in arrears with settlement agreement payments related to an NASD arbitration award, that he admitted to acting as an RIA when he was not registered, and that he was fully knowledgeable of the violation.
Brian A. Guilliom (Louisville): In November 2001, CFP Board issued Mr. Guilliom a public letter of admonition following its investigation of a 1998 customer complaint and an NASD letter of caution relating to questionable signatures Mr. Guilliom's former employer found in some of his client files. Upon review, CFP Board found that Mr. Guilliom signed client signatures on several occasions, received a letter of caution from the NASD regarding those signatures, recommended an unauthorized transaction for a client's retirement portfolio, engaged in the unauthorized use of the CFP marks for six months, and falsely attested on his Renewal Form that he had not been the subject of a self-regulatory organization inquiry, investigation or proceeding related to his professional conduct. In mitigation, CFP Board considered that Mr. Guilliom was cooperative, took full responsibility for his actions and did not benefit financially from them. In aggravation, CFP Board considered that Mr. Guilliom admitted to possibly signing client signatures on a number of other occasions.
Michael P. Kaselnak (Rochester): In November 2001, CFP Board issued Mr. Kaselnak a public letter of admonition following its investigation of a 30-day suspension and $5,000 fine by the NASD, a 30-day suspension of his state securities license and censure of his state insurance license, and a 10-day suspension and $5,000 fine by his broker/dealer for selling two promissory notes without providing prior written notice to his employing broker/dealer. Specifically, CFP Board found that Mr. Kaselnak engaged in "selling away." Additionally, CFP Board found that although Mr. Kaselnak notified CFP Board of his NASD and state suspensions, he failed to do so within 10 calendar days, as required by Article 12.2 of the Disciplinary Rules and Procedures.