CFP Board Censures Improper CFP® Certificant Conduct
|Colorado||Mark A. Cose||Glenwood Springs||Letter of Admonition|
|Florida||Matthew E. Marone||St. Petersburg||Letter of Admonition|
|New Jersey||Jack A. Moloney||Hoboken||Letter of Admonition|
|New York||Arthur W. Tuttle||Nanuet||Letter of Admonition|
|North Carolina||John K. Toupin||Franklin||Revocation|
|Michigan||Harold M. Miller||Bay City||Letter of Admonition|
|Minnesota||Christopher A. Lowry||St. Paul||Revocation|
|Texas||Julia Carolyn Norton||San Antonio||Revocation|
|Patricia Bisch Green||Houston||Letter of Admonition|
Public disciplinary actions taken by CFP Board, in order of decreasing severity, include permanent revocation, suspension and letters of admonition.
Under terms of the revocations, Lowry, Norton and Toupin no longer have the right to use the CFP® certification marks. CFP Board issued Cose, Green, Marone, Miller, Moloney and Tuttle 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 can check on a planner's disciplinary history and certification status with CFP Board at www.CFP.net/search.
CFP Board, a nonprofit regulatory organization, fosters professional standards in personal financial planning so that the public values, has access to and benefits from competent and ethical financial planning. CFP Board owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame logo). These marks are awarded to individuals who successfully complete CFP Board's initial and ongoing certification requirements. CFP Board currently authorizes more than 42,000 individuals to use these marks in the United States. For more about CFP Board, visit www.CFP.net.
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(tm) and federally registered CFP (with flame logo) as a result of their unethical, improper or illegal professional or personal conduct. Cases have been listed by state.
John K. Toupin (Franklin): In April 2003, CFP Board permanently revoked Mr. Toupin's right to use the CFP marks after he failed to respond to CFP Board's March 2003 complaint investigating his January 2003 criminal conviction of multiple counts of securities fraud and obtaining property under false pretenses in North Carolina, for which he was sentenced to 24-30 months in prison. Due to Mr. Toupin's failure to respond to CFP Board's complaint, the allegations in the complaint were deemed admitted and an order of revocation was issued.
Christopher A. Lowry (St. Paul): In February 2003, CFP Board permanently revoked Mr. Lowry's right to use the CFP marks after he failed to respond to CFP Board's December 2002 amended complaint investigating a civil suit and administrative proceeding brought against Mr. Lowry by the Securities and Exchange Commission regarding allegations that Mr. Lowry misappropriated funds invested in his company for his personal use. Mr. Lowry also failed to respond adequately to several other requests from CFP Board. Due to Mr. Lowry's failure to respond to CFP Board's amended complaint, the allegations in the complaint were deemed admitted and an order of revocation was issued.
Julia Carolyn Norton (San Antonio): In January 2003, CFP Board permanently revoked Ms. Norton's right to use the CFP marks after she failed to respond to CFP Board's November 2002 complaint investigating her unauthorized use of the marks and her repeated failure to respond to CFP Board's cease-and-desist letters. Due to Ms. Norton's failure to respond to CFP Board's complaint, the allegations in the complaint were deemed admitted and an order of revocation was issued.
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.
Mark A. Cose (Glenwood Springs): In March 2003, CFP Board issued Mr. Cose a public letter of admonition as part of a settlement agreement reached during the course of its investigation into two civil suits filed by former clients against him regarding the actions of a company employee. Pursuant to the settlement agreement with CFP Board, Mr. Cose consented to findings that the employee diverted money from client accounts by improper use of a signature stamp to sign checks after normal working hours.
Matthew E. Marone (St. Petersburg): In March 2003, CFP Board issued Mr. Marone a public letter of admonition as part of a settlement agreement reached during the course of its investigation into a consent agreement into which Mr. Marone had entered with the State of Florida Department of Insurance. Pursuant to the settlement agreement with CFP Board, Mr. Marone consented to findings that he had entered into a loan agreement and accepted funds from a client and that he had failed to notify the principal of his broker/dealer of the loan agreement.
Harold M. Miller (Bay City): In March 2003, CFP Board issued Mr. Miller a public letter of admonition after its investigation of a customer complaint alleging that he implemented an unsuitable annuity investment in the customer's account, as well as recommended the sale of stock even though the dividends were relied upon for income and significant capital gains taxes would be incurred. After a hearing was conducted, CFP Board found that Mr. Miller failed to estimate the clients' capital gains tax when recommending they sell their stock and considered that Mr. Miller did not demonstrate sufficient knowledge regarding investment management and risk for a person of his experience.
Jack A. Moloney (Hoboken): In February 2003, CFP Board issued a public letter of admonition to Mr. Moloney after he disclosed to CFP Board that he had entered into a settlement with the National Association of Securities Dealers Inc. whereby he consented to findings that he engaged in selling away and engaged in private securities transactions. As part of the offer of settlement, Mr. Moloney consented to a one-year suspension from association with any NASD member in any capacity and consented to disgorge commissions in partial restitution to customers in the total amount of $20,000. CFP Board admonished Mr. Moloney to involve the appropriate compliance professionals and resources in his business activities, whether or not he chooses to re-enter the securities business.
Arthur W. Tuttle (Nanuet): In February 2003, CFP Board issued a public letter of admonition to Mr. Tuttle after discovering six customer complaints filed against him, three of which were filed as arbitration proceedings. After a hearing, CFP Board found that Mr. Tuttle over-concentrated client assets in illiquid investments and that Mr. Tuttle made false attestations to CFP Board on two renewal forms regarding his involvement in arbitration proceedings.
Patricia Bisch Green (Houston): In March 2003, CFP Board issued a public letter of admonition after it found that Ms. Green entered into a letter of acceptance, waiver and consent with National Association of Securities Dealers Inc. wherein she consented to findings that she effected approximately four transactions in the securities account of a customer; exercised discretionary power in that customer's accounts without prior written authorization from the customer or acceptance in writing by her broker/dealer of the account as discretionary; failed to follow a customer's instructions when she failed to reinstate certain expired stop-loss orders on certain positions and failed to place stop-loss orders on other positions. Ms. Green consented to a fine in the amount of $15,000 and suspension from association with any member in any capacity for 15 business days. CFP Board also found that Ms. Green was terminated by her employer for violating NASD rules and bank policies and procedures and that she failed to timely disclose her professional suspension to CFP Board within 10 days, as required.