CFP Board Censures Improper CFP® Certificant Conduct
|Arizona||Gary J. Deardorff||Glendale||Letter of Admonition|
|Colorado||Norman P. Rounds||Boulder||Revocation|
|Louis W. Welt||Boulder||Suspension|
|Florida||Robert J. Yarbrough||Ormond Beach||Letter of Admonition|
|Georgia||James S. Quay||Atlanta||Revocation|
|Ohio||Robert E. Messinger||Cincinnati||Letter of Admonition|
|New Jersey||Erik Mosholt||Middletown||Suspension|
|New York||Mark William Rager||Geneva||Revocation|
|Texas||William H. Matthews||Dallas||Revocation|
|Washington||Randall T. Becker||Bellevue||Suspension|
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, William H. Matthews, James S. Quay, Mark William Rager and Norman P. Rounds no longer have the right to use the CFP certification marks. The rights of Louis W. Welt and Randall T. Becker to use the CFP marks were suspended for one year and one day, and the rights of Erik Mosholt was suspended for six months. CFP Board issued letters of admonition to Gary J. Deardorff, Robert E. Messinger and Robert G. Yarbrough; they retain the right to use the CFP marks.
The basis for each decision can be found in the report below. Consumers can check on a planner's disciplinary history and certification status with CFP Board on the Web site.
DISCIPLINARY ACTION REPORT
Public Letters of Admonition
Gary J. Deardorff (Glendale): In November 2005, CFP Board issued Mr. Deardorff a letter of admonition after its investigation of four arbitrations filed against Mr. Deardorff by former clients. Pursuant to a settlement agreement, Mr. Deardorff consented to findings that although he has endeavored to uphold CFP Board's Code of Ethics and Professional Responsibility since becoming certified, he was not actually certified at the time he provided investment services to the arbitration claimants, and that if he had been certified at that time, his conduct would have violated Rule 701 and its requirement that services be provided diligently. Mr. Deardorff retains the right to use the CFP certification marks.
Robert G. Yarbrough (Ormond Beach): In December 2005, CFP Board issued Mr. Yarbrough a letter of admonition pursuant to a settlement agreement wherein Mr. Yarbrough consented to findings that he violated CFP Board's Code of Ethics and Professional Responsibility when he failed to update his clients' account information to reflect the cessation of their annual salary. Mr. Yarbrough retains the right to use the CFP certification marks.
Robert E. Messinger (Cincinnati): In December 2005, CFP Board issued Mr. Messinger a letter of admonition after its investigation of an NASD proceeding. Pursuant to a settlement agreement, Mr. Messinger consented to findings that he violated CFP Board's Code of Ethics and Professional Responsibility after he consented to NASD findings that he recommended and sold Class B mutual fund shares despite their higher expenses and despite the breakpoints available with Class A shares, in violation of NASD rules. Mr. Messinger retains the right to use the CFP certification marks.
Louis W. Welt (Boulder): In December 2005, CFP Board suspended Mr. Welt's right to use the CFP certification marks for one year and one day. Pursuant to a settlement agreement, Mr. Welt consented to findings that he violated CFP Board's Code of Ethics and Professional Responsibility by creating unjustified expectations in target audiences by using postcard advertisements that contained statements promising viable estate planning options but failing to disclose the risks or costs of those options.
Erik Mosholt (Middletown): In December 2005, CFP Board suspended Mr. Mosholt's right to use the CFP certification marks for a period of six months. After an investigation and hearing, the Board of Professional Review made several findings, including findings that Mr. Mosholt entered into two Letters of Acceptance, Waiver and Consent (AWC) with NASD. In the first AWC, Mr. Mosholt consented to findings that 1) his broker/dealer failed to ensure investors who qualified to purchase Class A shares received this benefit; 2) his broker/dealer representatives recommended unsuitable purchases of Class B shares to investors; and 3) his broker/dealer, through Mr. Mosholt, failed to establish, maintain and enforce a supervisory system reasonably designed to identify all categories of opportunities for investors to purchase mutual funds at NAV. In the second AWC, Mr. Mosholt consented to findings that while not registered as a principal, he acted as a principal by actively engaging in the management of his broker/dealer through his supervision of the review of third-party mutual funds for possible distribution, his ongoing review of the selected funds, and his development and ongoing review of asset allocation services, proprietary mutual funds and the firm's fee-based products.
Randall T. Becker (Bellevue): In December 2005, CFP Board suspended Mr. Becker's right to use the CFP certification marks for one year and one day. Pursuant to a settlement agreement, Mr. Becker consented to findings that the following conduct violated CFP Board’s Code of Ethics and Professional Responsibility: 1) he entered into a Letter of Acceptance, Waiver and Consent with NASD related to his failure to disclose outside business activities, for which he was suspended from association with any NASD member for 15 days and fined $17,200; 2) he failed to disclose the NASD investigation and his suspension to CFP Board as required; and 3) he entered into a consent order with his state securities division wherein he agreed that his investment advisor representative registration be revoked and that he would not apply to become a broker/dealer, investment advisor, securities salesperson or investment advisor representative for six years.
Norman P. Rounds (Boulder): In January 2006, CFP Board permanently revoked Mr. Rounds' right to use the CFP certification marks after its investigation of an SEC civil action related to allegations that Mr. Rounds acted as a broker in connection with the offer and sale of partnership interests after he had been permanently enjoined from acting as a broker or dealer by the SEC. The Board of Professional Review found that, without admitting or denying the allegations, Mr. Rounds consented to the entry of a final judgment in the SEC matter that resulted in his bar from association with any broker or dealer. Mr. Rounds appealed the Board of Professional Review's findings; however, after a review of the record, Mr. Rounds' petition for appeal and CFP Board’s response thereto, the Board of Appeals determined to affirm CFP Board's findings and the discipline imposed.
James S. Quay (Atlanta): In January 2006, CFP Board permanently revoked Mr. Quay's right to use the CFP certification marks pursuant to a settlement agreement wherein Mr. Quay consented to findings that he violated CFP Board's Code of Ethics and Professional Responsibility when he failed to disclose his involvement in civil actions and governmental inquiries related to his sale of viaticals in 1996 and 1997.
Mark William Rager (Geneva): In December 2005, CFP Board permanently revoked Mr. Rager's right to use the CFP certification marks after the Board of Professional Review found that he pleaded guilty to felony grand larceny in connection with funds stolen from his employer, was sentenced to a prison term, and was ordered to pay restitution.
William H. Matthews (Dallas): In December 2005, CFP Board permanently revoked Mr. Matthews' right to use the CFP certification marks after discovering and investigating an arbitration claim and customer complaint filed against Mr. Matthews. Specifically, the Board of Professional Review found that Mr. Matthews violated CFP Board's Code of Ethics and Professional Responsibility when 1) he sold two clients annuities that were inappropriate for persons of their age and financial standing, particularly when considering the specific funds in which he chose to invest the annuity sub-accounts; 2) he made payments to reimburse a client's losses without the knowledge of his broker/dealer; and 3) he falsely attested on his Certification Application that he had not been a respondent in an arbitration.
The mission of Certified Financial Planner Board of Standards Inc. is to help people benefit from competent, professional and ethical financial planning. CFP Board owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame logo) 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 50,000 individuals to use these marks in the United States.
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