News Release
CFP Board Imposes Public Discipline
Disciplinary actions relate to 10 current or former CFP® professionals
Certified Financial Planner Board of Standards, Inc. (CFP Board) announced today public disciplinary actions against the following individuals, effective immediately or on the date noted in each case. Public disciplinary actions taken by CFP Board, in order of increasing severity, include letters of admonition, suspensions and permanent revocations.
This release contains information about disciplinary actions relating to 10 current or former CFP® professionals. Of these actions, there were 5 letters of admonition, 2 suspensions, and 3 administrative revocations.
The basis for each decision can be found in a Disciplinary Action Report below and on CFP Board’s website. The public may check on an individual’s disciplinary history and certification status with CFP Board at www.CFP.net/verify.
CFP Board’s enforcement process is a critical consumer protection. CFP® professionals agree to abide by CFP Board’s Standards of Professional Conduct (Standards), which includes the Code of Ethics and Professional Responsibility, Rules of Conduct and Financial Planning Practice Standards. CFP Board enforces its ethical standards by investigating incidents of alleged violations and, where there is probable cause to believe there are grounds for discipline, presenting a Complaint containing the alleged violations to the CFP Board’s Disciplinary and Ethics Commission (Commission) pursuant to CFP Board’s Disciplinary Rules and Procedures (Disciplinary Rules). If the Commission determines there are grounds for discipline, it may impose a sanction ranging from a private censure or public letter of admonition to the suspension or revocation of the right to use the CFP® marks. CFP Board’s Disciplinary Rules set forth the process for investigating matters and imposing discipline where violations have been found.
The Commission meets at least three times a year to provide a fair, unbiased review of any matter in which a CFP® professional is alleged to have committed violations of the Standards.
The Commission functions in accordance with the Disciplinary Rules and reviews all matters 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.
Thomas Chandler, CFP® (Granite Bay): In April 2018, CFP Board’s Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Chandler received a Letter of Admonition. The Commission issued its order after determining that Mr. Chandler: 1) failed to treat client information, such as client names, account numbers, and account values, as confidential when he provided client information that he obtained while employed with his prior firm to his new firm; 2) failed to take prudent steps to protect the security of stored information, whether physically or electronically, that was within the certificant’s control when he obtained confidential client information at his prior firm that he sent to his personal email, copied to a flash drive, and later released to his new firm; 3) failed to comply with applicable regulatory requirements governing professional services provided to his clients when he violated Regulation S-P by disclosing confidential customer information; 4) failed to perform professional services with dedication to the lawful objectives of the employer/principal and in accordance with CFP Board’s Code of Ethics and Professional Responsibility when he disclosed client information in violation of his confidentiality agreement with his prior firm and his prior firm’s internal procedures; and 5) engaged in conduct that reflects adversely on his integrity and fitness as a certificant, upon the CFP® marks, and upon the profession when (a) he violated a confidentiality agreement with his prior firm and his prior firm’s Associate Handbook, misappropriated trade secrets, and engaged in unfair competition, by providing his new firm with confidential information such as customer names, account numbers, and account values from his prior firm, and (b) a court entered a judgment and findings against Mr. Chandler. The Commission further determined that the Financial Industry Regulatory Authority, Inc. (FINRA) found that Mr. Chandler’s conduct violated FINRA Rule 2010. The Commission determined that Mr. Chandler’s conduct violated Rules 3.1, 3.2, 4.3, 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. Accordingly, the Commission admonished Mr. Chandler with regard to the above-mentioned conduct.
Gregory McCloskey, CFP® (Irvine): In April 2018, CFP Board’s Disciplinary and Ethics Commission (Commission) and Mr. McCloskey entered into a settlement agreement in which Mr. McCloskey agreed that CFP Board would issue a Letter of Admonition. In the settlement agreement, Mr. McCloskey consented to CFP Board’s findings that he personally invested and participated in a series of private securities transactions without the knowledge or consent of his firm. CFP Board further found that the Financial Industry Regulatory Authority, Inc. (FINRA, formerly known as the National Association of Securities Dealers or NASD) determined that Mr. McCloskey’s conduct violated NASD Rules 3040 and 2110 and FINRA Rule 2010. FINRA suspended Mr. McCloskey from associating with any FINRA member firm in any and all capacities for 15 business days and fined him $5,000. CFP Board determined that Mr. McCloskey’s conduct violated Rule 606(a) of CFP Board’s Code of Ethics and Professional Responsibility and Rule 4.3 of CFP Board’s Rules of Conduct and provided grounds for discipline pursuant to Articles 3(A) and 3(D) of CFP Board’s Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. McCloskey with regard to the above-mentioned conduct.
COLORADO
Dale Payne, CFP® (Colorado Springs): In April 2018, CFP Board’s Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Payne received a Letter of Admonition. The Commission issued its order after determining that Mr. Payne failed to refund prepaid and unearned advisory fees in a timely manner in accordance with the refund policy stated in his Form ADV Part 2A. The Commission also determined that the Colorado Division of Securities found that Mr. Payne’s conduct failed to comply with Rules § 11-51-407(5)(a)-(f), § 11-51-409.5, 3 CCR 704-Rule 51-4.7(IA), 3 CCR 704-1 Rule 51-4.8(IA) (H) and (U), and 3 CCR 704-1 51-4.lO(IA) (B)(2). The Commission determined that Mr. Payne’s conduct violated Rule 4.3 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. Accordingly, the Commission admonished Mr. Payne with regard to the above-mentioned conduct.
FLORIDA
Jeffrey Janson, CFP® (Naples): In April 2018, CFP Board’s Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Janson received a Letter of Admonition. The Commission issued its order after determining that Mr. Janson: 1) took confidential information such as client lists, client files, or other client information from his prior firm in violation of his employment agreement; 2) violated several sections of his employment agreement including: (a) a prohibition against undertaking the planning or organization of business activity competitive with his work for his prior firm, (b) a prohibition against taking client lists, client files, or other client information from his prior firm, (c) a prohibition against contacting current or former clients of his prior firm for two years after leaving the firm, and (d) an obligation to provide 60 days written notice of termination when circumstances permit; and 3) breached his employment agreement and failed to comply with an arbitration award and a judgment. The Commission determined that Mr. Janson’s conduct violated Rules 3.1, 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. Accordingly, the Commission admonished Mr. Janson with regard to the above-mentioned conduct.
MASSACHUSETTS
Nathan Zielonka, CFP® (Newton): In July 2018, CFP Board’s Disciplinary and Ethics Commission (Commission) and Mr. Zielonka entered into a settlement agreement in which Mr. Zielonka agreed that CFP Board would issue a Letter of Admonition. In the settlement agreement, Mr. Zielonka consented to CFP Board’s findings that he had three alcohol-related driving offenses. The Commission determined that Mr. Zielonka’s conduct violated Rule 6.5 of CFP Board’s Rules of Conduct and provided grounds for discipline pursuant to Articles 3(A) and 3(C) of CFP Board’s Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. Zielonka with regard to the above-mentioned conduct.
Gary Gardner (Walnut Creek): In April 2018, CFP Board’s Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Gardner received a Suspension of his right to use the CFP® certification marks for one year. The Commission issued its order after determining that Mr. Gardner: 1) failed to exercise reasonable and prudent professional judgment in providing professional services, failed to act in the interest of the client, engaged in conduct that reflects adversely on his integrity and fitness as a CFP® professional , upon the marks, and upon the profession, failed to make and/or implement only recommendations that are suitable for a client, and failed to make a reasonable investigation regarding the financial products recommended to client, when he recommended and sold a client unsuitable investments totaling approximately 55 percent of her net worth; 2) failed to consider sufficient and relevant alternatives to the client's current course of action in an effort to reasonably meet the client's goals, needs and priorities when he recommended and sold several risky, illiquid alternative investments to her, a risk-averse investor; 3) failed to communicate the recommendations in a manner and to an extent reasonably necessary to assist the client in making an informed decision when he failed to fully disclose the risks and illiquidity of alternative investments he recommended to her, resulting in her uninformed decision to invest in products that were unsuitable for her; 4) failed to select appropriate products and services that were consistent with the client's goals, needs and priorities when he recommended and sold several risky, illiquid alternative investments to her, a risk-averse investor; and 5) made false or misleading statements to CFP Board when he stated that he was not a “defendant or respondent in a civil action including, but not limited to, a lawsuit, arbitration or mediation” on his 2012 and 2014 CFP Board Renewal Applications when he was named as a respondent in a Financial Industry Regulatory Authority, Inc. (FINRA) Arbitration. The Commission determined that Mr. Gardner’s conduct violated Rules 201, 202, 607, and 703 of CFP Board’s Code of Ethics and Professional Responsibility and Financial Planning Practice Standards 400-1, 400-3, and 500-2, and provided grounds for discipline pursuant to Articles 3(A), 3(B) and 3(G) of CFP Board’s Disciplinary Rules and Procedures. Mr. Gardner’s suspension is effective from June 12, 2018 until June 12, 2019.
TEXAS
George Warner (Rowlett): In April 2018, CFP Board’s Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Warner received a Suspension of his right to use the CFP® certification marks for 30 days. The Commission issued its order after determining that Mr. Warner: 1) altered new account documents and other account profile information that had already been signed by the clients, causing his firm to preserve and maintain altered documents; and 2) was permitted to resign for violating his firm’s policies and procedures. CFP Board further found that the Financial Industry Regulatory Authority, Inc. (FINRA) determined that Mr. Warner’s conduct violated FINRA Rules 4511(a) and 2010. FINRA suspended Mr. Warner from associating with any FINRA member firm in any and all capacities for 30 days and fined him $5,000. The Commission determined that Mr. Warner’s conduct violated Rules 4.3, 4.4, and 5.1 of CFP Board’s Rules of Conduct and provided grounds for discipline pursuant to Articles 3(A) and 3(D) of CFP Board’s Disciplinary Rules and Procedures. Mr. Warner’s suspension was effective from June 12, 2018 until July 12, 2018.
Caprice Mallett (Phoenix): In March 2018, CFP Board issued an order permanently revoking Ms. Mallett’s right to use the CFP® certification marks. This discipline followed Ms. Mallett opting not to file an answer to CFP Board’s Complaint within the required timeframe. CFP Board’s Complaint alleged, among other things, that Ms. Mallett: 1) failed to pay an arbitration award to her clients; and 2) failed to comply with National Association of Securities Dealers, Inc. (NASD, now known as the Financial Industry Regulatory Authority, Inc. or FINRA) Conduct Rule 3030, Article VI, section 3 of FINRA’s Bylaws, and FINRA Rule 9554, which are regulatory requirements governing professional services provided to the client. CFP Board’s Complaint alleged that Ms. Mallett’s conduct violated Rules 4.3 and 6.5 of CFP Board’s Rules of Conduct, providing grounds for discipline under Article 3(A) of CFP Board’s Disciplinary Rules and Procedures (Disciplinary Rules). Ms. Mallett declined 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 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 Administrative Order of Revocation. Ms. Mallett’s revocation was effective as of March 13, 2018.
CALIFORNIA
Kenneth Lindell (Santa Rosa): In March 2018, CFP Board issued an order permanently revoking Mr. Lindell’s right to use the CFP® certification marks. This discipline followed Mr. Lindell’s failure to file an answer to CFP Board’s Complaint within the required timeframe. CFP Board’s Complaint alleged, among other things, that Mr. Lindell: 1) failed to place the interest of his client ahead of his own and failed to act with the duty of care of a fiduciary when he: (a) committed theft by obtaining or exercising control over a client's property, and (b) engaged in fraud, misrepresentation, or deceit in connection with the offer, sale or purchase of a security; 2) did not treat his clients fairly or provide professional services with integrity and objectivity; 3) failed to comply with applicable regulatory requirements governing professional services provided to the client when he failed to respond to Financial Industry Regulatory Authority, Inc.'s (FINRA) request for information which resulted in his FINRA suspension and bar pursuant to FINRA Rule 9552(h); and 4) failed to cooperate with CFP Board's professional review operations and requirements when he obstructed CFP Board staff in the performance of their duty by failing to respond to CFP Board's requests. CFP Board’s Complaint alleged that Mr. Lindell’s conduct violated Rules 1.4, 3.8, 4.1, 4.3, and 6.1 of CFP Board’s Rules of Conduct, providing grounds for discipline under Articles 3(A), 3(D), 3(E), and 3(F) of CFP Board’s Disciplinary Rules and Procedures (Disciplinary Rules). Mr. Lindell declined 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 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 Administrative Order of Revocation. Mr. Lindell’s revocation was effective as of March 13, 2018.
FLORIDA
Judy Healy (Melbourne): In March 2018, CFP Board issued an order permanently revoking Ms. Healy’s right to use the CFP® certification marks. This discipline followed Ms. Healy’s failure to file an answer to CFP Board’s Complaint within the required timeframe. CFP Board’s Complaint alleged, among other things, that Ms. Healy: 1) failed to comply with applicable regulatory requirements governing professional services provided to the client when she sold, or caused to be sold, 53 initial public offerings in a restricted person’s account; 2) failed to perform professional services with dedication to the lawful objectives of the employer/principal and in accordance with CFP Board’s Code of Ethics and Professional Responsibility when she omitted facts in connection with the trading of new issues in a family member’s account; 3) failed to respond to CFP Board staff requests for information and documentation; and 4) made false or misleading statements to CFP Board when she falsely answered “No” to question No. 8 on her 2015 CFP Board Renewal Application, which asks “Have you ever been terminated for cause or permitted to resign in lieu of discipline when the cause of the termination or resignation involved allegations relating to compliance, honesty or ethical considerations?”. CFP Board further found that the Financial Industry Regulatory Authority, Inc. (FINRA) determined that Ms. Healy’s conduct violated FINRA Rules 5130 and 2010. FINRA suspended Ms. Healy from associating with any FINRA member firm in any and all capacities for 45 calendar days and fined her $25,000. CFP Board’s Complaint alleged that Ms. Healy’s conduct violated Rules 4.3 and 5.1 of CFP Board’s Rules of Conduct, providing grounds for discipline under Articles 3(A), 3(D), 3(F), and 3(G) of CFP Board’s Disciplinary Rules and Procedures (Disciplinary Rules). Ms. Healy declined 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 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 Administrative Order of Revocation. Ms. Healy’s revocation was effective as of March 8, 2018.
Certified Financial Planner Board of Standards, Inc. (CFP Board) announced today public disciplinary actions against the following individuals, effective immediately or on the date noted in each case. Public disciplinary actions taken by CFP Board, in order of increasing severity, include letters of admonition, suspensions and permanent revocations.
This release contains information about disciplinary actions relating to 10 current or former CFP® professionals. Of these actions, there were 5 letters of admonition, 2 suspensions, and 3 administrative revocations.
The basis for each decision can be found in a Disciplinary Action Report below and on CFP Board’s website. The public may check on an individual’s disciplinary history and certification status with CFP Board at www.CFP.net/verify.
CFP Board’s enforcement process is a critical consumer protection. CFP® professionals agree to abide by CFP Board’s Standards of Professional Conduct (Standards), which includes the Code of Ethics and Professional Responsibility, Rules of Conduct and Financial Planning Practice Standards. CFP Board enforces its ethical standards by investigating incidents of alleged violations and, where there is probable cause to believe there are grounds for discipline, presenting a Complaint containing the alleged violations to the CFP Board’s Disciplinary and Ethics Commission (Commission) pursuant to CFP Board’s Disciplinary Rules and Procedures (Disciplinary Rules). If the Commission determines there are grounds for discipline, it may impose a sanction ranging from a private censure or public letter of admonition to the suspension or revocation of the right to use the CFP® marks. CFP Board’s Disciplinary Rules set forth the process for investigating matters and imposing discipline where violations have been found.
The Commission meets at least three times a year to provide a fair, unbiased review of any matter in which a CFP® professional is alleged to have committed violations of the Standards.
The Commission functions in accordance with the Disciplinary Rules and reviews all matters 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 |
| Arizona | Caprice Mallett | Phoenix | Administrative Revocation |
| California | Thomas Chandler, CFP® | Granite Bay | Public Letter of Admonition |
| California | Gary Gardner | Walnut Creek | 1-year Suspension |
| California | Gregory McCloskey, CFP® | Irvine | Public Letter of Admonition |
| California | Kenneth Lindell | Santa Rosa | Administrative Revocation |
| Colorado | Dale Payne, CFP® | Colorado Springs | Public Letter of Admonition |
| Florida | Jeffrey Janson, CFP® | Naples | Public Letter of Admonition |
| Florida | Judy Healy | Melbourne | Administrative Revocation |
| Massachusetts | Nathan Zielonka, CFP® | Newton | Public Letter of Admonition |
| Texas | George Warner | Rowlett | 30-day Suspension |
LETTERS OF ADMONITION
CALIFORNIAThomas Chandler, CFP® (Granite Bay): In April 2018, CFP Board’s Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Chandler received a Letter of Admonition. The Commission issued its order after determining that Mr. Chandler: 1) failed to treat client information, such as client names, account numbers, and account values, as confidential when he provided client information that he obtained while employed with his prior firm to his new firm; 2) failed to take prudent steps to protect the security of stored information, whether physically or electronically, that was within the certificant’s control when he obtained confidential client information at his prior firm that he sent to his personal email, copied to a flash drive, and later released to his new firm; 3) failed to comply with applicable regulatory requirements governing professional services provided to his clients when he violated Regulation S-P by disclosing confidential customer information; 4) failed to perform professional services with dedication to the lawful objectives of the employer/principal and in accordance with CFP Board’s Code of Ethics and Professional Responsibility when he disclosed client information in violation of his confidentiality agreement with his prior firm and his prior firm’s internal procedures; and 5) engaged in conduct that reflects adversely on his integrity and fitness as a certificant, upon the CFP® marks, and upon the profession when (a) he violated a confidentiality agreement with his prior firm and his prior firm’s Associate Handbook, misappropriated trade secrets, and engaged in unfair competition, by providing his new firm with confidential information such as customer names, account numbers, and account values from his prior firm, and (b) a court entered a judgment and findings against Mr. Chandler. The Commission further determined that the Financial Industry Regulatory Authority, Inc. (FINRA) found that Mr. Chandler’s conduct violated FINRA Rule 2010. The Commission determined that Mr. Chandler’s conduct violated Rules 3.1, 3.2, 4.3, 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. Accordingly, the Commission admonished Mr. Chandler with regard to the above-mentioned conduct.
Gregory McCloskey, CFP® (Irvine): In April 2018, CFP Board’s Disciplinary and Ethics Commission (Commission) and Mr. McCloskey entered into a settlement agreement in which Mr. McCloskey agreed that CFP Board would issue a Letter of Admonition. In the settlement agreement, Mr. McCloskey consented to CFP Board’s findings that he personally invested and participated in a series of private securities transactions without the knowledge or consent of his firm. CFP Board further found that the Financial Industry Regulatory Authority, Inc. (FINRA, formerly known as the National Association of Securities Dealers or NASD) determined that Mr. McCloskey’s conduct violated NASD Rules 3040 and 2110 and FINRA Rule 2010. FINRA suspended Mr. McCloskey from associating with any FINRA member firm in any and all capacities for 15 business days and fined him $5,000. CFP Board determined that Mr. McCloskey’s conduct violated Rule 606(a) of CFP Board’s Code of Ethics and Professional Responsibility and Rule 4.3 of CFP Board’s Rules of Conduct and provided grounds for discipline pursuant to Articles 3(A) and 3(D) of CFP Board’s Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. McCloskey with regard to the above-mentioned conduct.
COLORADO
Dale Payne, CFP® (Colorado Springs): In April 2018, CFP Board’s Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Payne received a Letter of Admonition. The Commission issued its order after determining that Mr. Payne failed to refund prepaid and unearned advisory fees in a timely manner in accordance with the refund policy stated in his Form ADV Part 2A. The Commission also determined that the Colorado Division of Securities found that Mr. Payne’s conduct failed to comply with Rules § 11-51-407(5)(a)-(f), § 11-51-409.5, 3 CCR 704-Rule 51-4.7(IA), 3 CCR 704-1 Rule 51-4.8(IA) (H) and (U), and 3 CCR 704-1 51-4.lO(IA) (B)(2). The Commission determined that Mr. Payne’s conduct violated Rule 4.3 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. Accordingly, the Commission admonished Mr. Payne with regard to the above-mentioned conduct.
FLORIDA
Jeffrey Janson, CFP® (Naples): In April 2018, CFP Board’s Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Janson received a Letter of Admonition. The Commission issued its order after determining that Mr. Janson: 1) took confidential information such as client lists, client files, or other client information from his prior firm in violation of his employment agreement; 2) violated several sections of his employment agreement including: (a) a prohibition against undertaking the planning or organization of business activity competitive with his work for his prior firm, (b) a prohibition against taking client lists, client files, or other client information from his prior firm, (c) a prohibition against contacting current or former clients of his prior firm for two years after leaving the firm, and (d) an obligation to provide 60 days written notice of termination when circumstances permit; and 3) breached his employment agreement and failed to comply with an arbitration award and a judgment. The Commission determined that Mr. Janson’s conduct violated Rules 3.1, 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. Accordingly, the Commission admonished Mr. Janson with regard to the above-mentioned conduct.
MASSACHUSETTS
Nathan Zielonka, CFP® (Newton): In July 2018, CFP Board’s Disciplinary and Ethics Commission (Commission) and Mr. Zielonka entered into a settlement agreement in which Mr. Zielonka agreed that CFP Board would issue a Letter of Admonition. In the settlement agreement, Mr. Zielonka consented to CFP Board’s findings that he had three alcohol-related driving offenses. The Commission determined that Mr. Zielonka’s conduct violated Rule 6.5 of CFP Board’s Rules of Conduct and provided grounds for discipline pursuant to Articles 3(A) and 3(C) of CFP Board’s Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. Zielonka with regard to the above-mentioned conduct.
SUSPENSIONS
CALIFORNIAGary Gardner (Walnut Creek): In April 2018, CFP Board’s Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Gardner received a Suspension of his right to use the CFP® certification marks for one year. The Commission issued its order after determining that Mr. Gardner: 1) failed to exercise reasonable and prudent professional judgment in providing professional services, failed to act in the interest of the client, engaged in conduct that reflects adversely on his integrity and fitness as a CFP® professional , upon the marks, and upon the profession, failed to make and/or implement only recommendations that are suitable for a client, and failed to make a reasonable investigation regarding the financial products recommended to client, when he recommended and sold a client unsuitable investments totaling approximately 55 percent of her net worth; 2) failed to consider sufficient and relevant alternatives to the client's current course of action in an effort to reasonably meet the client's goals, needs and priorities when he recommended and sold several risky, illiquid alternative investments to her, a risk-averse investor; 3) failed to communicate the recommendations in a manner and to an extent reasonably necessary to assist the client in making an informed decision when he failed to fully disclose the risks and illiquidity of alternative investments he recommended to her, resulting in her uninformed decision to invest in products that were unsuitable for her; 4) failed to select appropriate products and services that were consistent with the client's goals, needs and priorities when he recommended and sold several risky, illiquid alternative investments to her, a risk-averse investor; and 5) made false or misleading statements to CFP Board when he stated that he was not a “defendant or respondent in a civil action including, but not limited to, a lawsuit, arbitration or mediation” on his 2012 and 2014 CFP Board Renewal Applications when he was named as a respondent in a Financial Industry Regulatory Authority, Inc. (FINRA) Arbitration. The Commission determined that Mr. Gardner’s conduct violated Rules 201, 202, 607, and 703 of CFP Board’s Code of Ethics and Professional Responsibility and Financial Planning Practice Standards 400-1, 400-3, and 500-2, and provided grounds for discipline pursuant to Articles 3(A), 3(B) and 3(G) of CFP Board’s Disciplinary Rules and Procedures. Mr. Gardner’s suspension is effective from June 12, 2018 until June 12, 2019.
TEXAS
George Warner (Rowlett): In April 2018, CFP Board’s Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Warner received a Suspension of his right to use the CFP® certification marks for 30 days. The Commission issued its order after determining that Mr. Warner: 1) altered new account documents and other account profile information that had already been signed by the clients, causing his firm to preserve and maintain altered documents; and 2) was permitted to resign for violating his firm’s policies and procedures. CFP Board further found that the Financial Industry Regulatory Authority, Inc. (FINRA) determined that Mr. Warner’s conduct violated FINRA Rules 4511(a) and 2010. FINRA suspended Mr. Warner from associating with any FINRA member firm in any and all capacities for 30 days and fined him $5,000. The Commission determined that Mr. Warner’s conduct violated Rules 4.3, 4.4, and 5.1 of CFP Board’s Rules of Conduct and provided grounds for discipline pursuant to Articles 3(A) and 3(D) of CFP Board’s Disciplinary Rules and Procedures. Mr. Warner’s suspension was effective from June 12, 2018 until July 12, 2018.
ADMINISTRATIVE REVOCATION
ARIZONACaprice Mallett (Phoenix): In March 2018, CFP Board issued an order permanently revoking Ms. Mallett’s right to use the CFP® certification marks. This discipline followed Ms. Mallett opting not to file an answer to CFP Board’s Complaint within the required timeframe. CFP Board’s Complaint alleged, among other things, that Ms. Mallett: 1) failed to pay an arbitration award to her clients; and 2) failed to comply with National Association of Securities Dealers, Inc. (NASD, now known as the Financial Industry Regulatory Authority, Inc. or FINRA) Conduct Rule 3030, Article VI, section 3 of FINRA’s Bylaws, and FINRA Rule 9554, which are regulatory requirements governing professional services provided to the client. CFP Board’s Complaint alleged that Ms. Mallett’s conduct violated Rules 4.3 and 6.5 of CFP Board’s Rules of Conduct, providing grounds for discipline under Article 3(A) of CFP Board’s Disciplinary Rules and Procedures (Disciplinary Rules). Ms. Mallett declined 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 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 Administrative Order of Revocation. Ms. Mallett’s revocation was effective as of March 13, 2018.
CALIFORNIA
Kenneth Lindell (Santa Rosa): In March 2018, CFP Board issued an order permanently revoking Mr. Lindell’s right to use the CFP® certification marks. This discipline followed Mr. Lindell’s failure to file an answer to CFP Board’s Complaint within the required timeframe. CFP Board’s Complaint alleged, among other things, that Mr. Lindell: 1) failed to place the interest of his client ahead of his own and failed to act with the duty of care of a fiduciary when he: (a) committed theft by obtaining or exercising control over a client's property, and (b) engaged in fraud, misrepresentation, or deceit in connection with the offer, sale or purchase of a security; 2) did not treat his clients fairly or provide professional services with integrity and objectivity; 3) failed to comply with applicable regulatory requirements governing professional services provided to the client when he failed to respond to Financial Industry Regulatory Authority, Inc.'s (FINRA) request for information which resulted in his FINRA suspension and bar pursuant to FINRA Rule 9552(h); and 4) failed to cooperate with CFP Board's professional review operations and requirements when he obstructed CFP Board staff in the performance of their duty by failing to respond to CFP Board's requests. CFP Board’s Complaint alleged that Mr. Lindell’s conduct violated Rules 1.4, 3.8, 4.1, 4.3, and 6.1 of CFP Board’s Rules of Conduct, providing grounds for discipline under Articles 3(A), 3(D), 3(E), and 3(F) of CFP Board’s Disciplinary Rules and Procedures (Disciplinary Rules). Mr. Lindell declined 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 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 Administrative Order of Revocation. Mr. Lindell’s revocation was effective as of March 13, 2018.
FLORIDA
Judy Healy (Melbourne): In March 2018, CFP Board issued an order permanently revoking Ms. Healy’s right to use the CFP® certification marks. This discipline followed Ms. Healy’s failure to file an answer to CFP Board’s Complaint within the required timeframe. CFP Board’s Complaint alleged, among other things, that Ms. Healy: 1) failed to comply with applicable regulatory requirements governing professional services provided to the client when she sold, or caused to be sold, 53 initial public offerings in a restricted person’s account; 2) failed to perform professional services with dedication to the lawful objectives of the employer/principal and in accordance with CFP Board’s Code of Ethics and Professional Responsibility when she omitted facts in connection with the trading of new issues in a family member’s account; 3) failed to respond to CFP Board staff requests for information and documentation; and 4) made false or misleading statements to CFP Board when she falsely answered “No” to question No. 8 on her 2015 CFP Board Renewal Application, which asks “Have you ever been terminated for cause or permitted to resign in lieu of discipline when the cause of the termination or resignation involved allegations relating to compliance, honesty or ethical considerations?”. CFP Board further found that the Financial Industry Regulatory Authority, Inc. (FINRA) determined that Ms. Healy’s conduct violated FINRA Rules 5130 and 2010. FINRA suspended Ms. Healy from associating with any FINRA member firm in any and all capacities for 45 calendar days and fined her $25,000. CFP Board’s Complaint alleged that Ms. Healy’s conduct violated Rules 4.3 and 5.1 of CFP Board’s Rules of Conduct, providing grounds for discipline under Articles 3(A), 3(D), 3(F), and 3(G) of CFP Board’s Disciplinary Rules and Procedures (Disciplinary Rules). Ms. Healy declined 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 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 Administrative Order of Revocation. Ms. Healy’s revocation was effective as of March 8, 2018.
ABOUT CFP BOARD
Certified Financial Planner Board of Standards, Inc. is the professional body for personal financial planners in the U.S. CFP Board sets standards for financial planning and administers the prestigious CFP® certification – one of the most respected certifications in financial services – so that the public has access to and benefits from competent and ethical financial planning. CFP Board, along with its Center for Financial Planning, is committed to increasing the public’s awareness of CFP® certification and access to a diverse, ethical and competent financial planning workforce. Widely recognized by firms and consumer groups as the standard for financial planning, CFP® certification is held by more than 83,000 people in the United States.
CONTACT
Dan Drummond, Director of Communications
202-379-2252
Mobile: 202-243-8621
[email protected]