Subject: Business Update

CFP Board Imposes Public Sanctions on Nine Individuals

Certified Financial Planner Board of Standards, Inc. (CFP Board), a nonprofit organization that certifies more than 98,000 CFP® professionals in the United States, today announced public sanctions against nine current or former CFP® professionals, or candidates for CFP® certification.

CFP Board sets and enforces high standards of competence and ethics for all CFP® professionals. When CFP Board learns that a CFP® professional has not abided by the ethical standards, CFP Board investigates and takes enforcement action.

CFP Board's Enforcement Process
As part of their certification, CFP® professionals make a commitment to CFP Board to abide by CFP Board's Code of Ethics and Standards of Conduct (Code and Standards) or its predecessor, the Standards of Professional Conduct (Standards), which included the Code of Ethics and Professional Responsibility, Rules of Conduct and Financial Planning Practice Standards. Individuals on the pathway to CFP® certification make a commitment to abide by CFP Board's Pathway to CFP® Certification Agreement (Pathway Agreement). CFP Board's Code and Standards benefits and protects the public and advances financial planning as a distinct and valuable profession. Compliance with the Code and Standards is critical to the integrity of the CFP Board certification marks.

CFP Board's Procedural Rules sets forth the process for investigating matters and imposing sanctions where violations have been found. CFP Board enforces its ethical standards by investigating alleged violations and, where there is probable cause to believe there are grounds for sanction, presents a Complaint containing the alleged violations to CFP Board's Disciplinary and Ethics Commission (Commission). The Commission meets at least six times a year to review any matter in which CFP Board has alleged that a CFP® professional has violated CFP Board's Code and Standards or its predecessor Standards, or an individual pursuing initial CFP® certification has violated the Pathway Agreement. The Commission functions in accordance with the Procedural Rules and reviews all matters on a case-by-case basis, considering the details specific to an individual case. If the Commission determines there are grounds for sanction, then it may impose a sanction. Commission orders may be appealed by a Respondent or CFP Board pursuant to the Procedural Rules.

CFP Board public sanctions include, in order of increasing severity, Public Censures, Suspensions, Temporary Bars, Permanent Bars and Revocations of the right to use the CFP Board certification marks. In certain circumstances, such as when a CFP® professional is in default due to failure to acknowledge receipt of a Notice of Investigation or failure to file an Answer, a CFP® professional may receive an Administrative Order of Suspension, Temporary Bar, Revocation or Permanent Bar. Administrative Orders are subject to appeal.

More information on CFP Board's enforcement process can be found at CFP.net/enforcement. In addition, at CFP.net/verify, CFP Board provides the public with:

• An individual's CFP® certification status and summaries of and links to orders issuing public sanctions to current or former CFP® professionals.
• Links to other sources of information about CFP® professionals that may be more recent or that may contain information that has not led to CFP Board discipline and does not appear on CFP Board's website. This information may include customer disputes, disciplinary actions taken by a regulator or employer, certain criminal matters and certain financial matters (such as bankruptcy proceedings and unpaid judgments or liens).
• Links to the Financial Industry Regulatory Authority's (FINRA's) BrokerCheck and the U.S. Securities and Exchange Commission's (SEC's) Investment Adviser Public Disclosure databases for individuals who are subject to FINRA or SEC oversight.

The Public Sanctions on Nine Individuals
A short summary of each sanction can be found below.

PUBLIC CENSURE

MASSACHUSETTS

Darryl Ruffen, CFP® (Haverhill, Massachusetts): In October 2023, the Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Ruffen received a Public Censure. The Commission determined that Mr. Ruffen violated Standard E.2.a. of the Code of Ethics and Standards of Conduct (Code and Standards), which provides that a CFP® professional may not engage in conduct that reflects adversely on his or her integrity or fitness as a CFP® professional, upon the CFP® marks or upon the profession. A court found sufficient facts with respect to a charge of Assault and Battery on a Family or Household Member and sentenced Mr. Ruffen to one year of probation and ordered him to refrain from abuse and to complete an anger management program. Accordingly, the Commission issued Mr. Ruffen an Order of Public Censure. To read the Commission's order, click here: Case History 44145.

NEW JERSEY

Joseph Tomczyk, CFP® (Paramus, New Jersey): In November 2023, the Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Tomczyk received a Public Censure. The Commission determined that Mr. Tomczyk violated Standard E.2.a. of the Code of Ethics and Standards of Conduct (Code and Standards), which provides that a CFP® professional may not engage in conduct that reflects adversely on his or her integrity or fitness as a CFP® professional, upon the CFP® marks or upon the profession. On November 14, 2022, Respondent filed for Chapter 13 bankruptcy protections in the United States Bankruptcy Court for the District of New Jersey, Bergen County, in case number 22-19051-VFP (Bankruptcy Matter). In accordance with Article 3 of CFP Board's Procedural Rules, CFP Board Enforcement Counsel delivered to Mr. Tomczyk a Complaint for Single Bankruptcy. In his Answer to the Complaint, Mr. Tomczyk denied that the existence of the Bankruptcy Matter demonstrates an inability to manage responsibly his financial affairs and provided the factual basis for his denial. After a hearing on the matter, the Commission determined that Mr. Tomczyk failed to rebut the presumption that his Bankruptcy Matter demonstrates an inability to manage responsibly his financial affairs. Accordingly, the Commission determined to issue Mr. Tomczyk an Order of Public Censure. To read the Commission's order, click here: Case History 45060.

SUSPENSION

NEW HAMPSHIRE

Mark A. Witaschek (Bedford, New Hampshire): In October 2023, CFP Board issued an order in which Mr. Witaschek received a Suspension that prohibits him from using the CFP Board certification marks for five years. This sanction followed an appeal of a January 2023 order of the Disciplinary and Ethics Commission. The CFP Board Appeals Commission affirmed the Disciplinary and Ethics Commission's determination that Mr. Witaschek violated Rule 6.5 of the Rules of Conduct, which provides that a CFP® professional may not engage in conduct that reflects adversely on his or her integrity or fitness as a CFP® professional, upon the CFP® marks or upon the profession, based upon the following findings: On November 5, 2018, after a multiple-day bench trial in the Superior Court of the District of Columbia, Criminal Division, Mr. Witaschek was found guilty of two counts of misdemeanor Tax Fraud Willful Attempt to Evade or Defeat Tax for Tax Years 2011 and 2012. Then, on February 22, 2019, Mr. Witaschek was sentenced to 180 days' incarceration, with all but eight days of the sentence suspended, and five years of unsupervised probation, and ordered to pay $134,885 in restitution. When sentencing Mr. Witaschek, the trial judge stated, "As a financial planner, I found that he should have known better." On appeal, the District of Columbia Court of Appeals affirmed the lower court's decision and referred to Mr. Witaschek being a "certified financial planner." Mr. Witaschek filed a petition for a writ of certiorari with the United States Supreme Court, which denied the petition on February 22, 2022. The Appeals Commission also affirmed the Disciplinary and Ethics Commission's findings that Mr. Witaschek filed for Chapter 11 bankruptcy protection in 2013, which was granted in 2014, and failed to timely pay more than $200,000 in federal taxes for tax years 2015 and 2016, resulting in the Internal Revenue Service filing a federal tax lien for both of those years, which the Disciplinary and Ethics Commission found reflected an inability to responsibly manage his personal finances. Pursuant to the decision of the Appeals Commission, CFP Board issued Mr. Witaschek a five-year suspension, retroactive to October 1, 2019, and continuing until October 1, 2024.

TEMPORARY BAR

CALIFORNIA

Diptes Basu (San Jose, California): In March 2023, the Disciplinary and Ethics Commission issued a Temporary Bar that prohibits Mr. Basu from applying for or obtaining CFP® certification for five years. The Disciplinary and Ethics Commission found that Mr. Basu engaged in Exam Misconduct by participating in a GroupMe chat group titled "March 2021 CFP® Exam," wherein Mr. Basu communicated about the March 2021 CFP® exam during the administration period by seeking assistance from members of the chat group who had already taken the exam and by receiving assistance prior to taking the exam. After taking the March 2021 CFP® exam, Mr. Basu posted a summary of the exam topics and other content from his CFP® exam to the chat group. As a result, the Disciplinary and Ethics Commission found Mr. Basu's conduct violated CFP Board's Pathway to CFP® Certification Agreement, which defines Exam Misconduct, in part, to include (1) "disclosing, publishing, reproducing, or transmitting the contents of the Exam, in whole or in part, in any manner or by any means, for any purpose;" and (2) "attempting to give or receive assistance, or otherwise communicating about the Exam, during the Exam administration." The Disciplinary and Ethics Commission issued to Mr. Basu an Order of Temporary Bar of five years, beginning on the date he took the CFP® exam, and determined to void his results on the March 2021 CFP® exam. That decision was subsequently affirmed on appeal by CFP Board's Appeals Commission. Mr. Basu's Temporary Bar is effective March 15, 2021, until March 15, 2026.

Rocio Tapia (Redwood City, California): In March 2023, the Disciplinary and Ethics Commission issued an order in which Ms. Tapia received a Temporary Bar that prohibits Ms. Tapia from applying for or obtaining CFP® certification for three years. The Disciplinary and Ethics Commission found that Ms. Tapia engaged in Exam Misconduct by participating in a GroupMe chat group titled "March 2021 CFP® Exam," wherein Ms. Tapia communicated about the March 2021 CFP® exam during the administration period by seeking assistance from members of the chat group who had already taken the CFP® exam and receiving assistance from them before taking the CFP® exam. As a result, the Disciplinary and Ethics Commission found Ms. Tapia's conduct violated CFP Board's Pathway to CFP® Certification Agreement, which defines Exam Misconduct, in part, to include "attempting to give or receive assistance, or otherwise communicating about the Exam, during the Exam administration." The Disciplinary and Ethics Commission issued to Ms. Tapia an Order of Temporary Bar for three years, beginning on the date she took the CFP® exam, and determined to void her results on the March 2021 CFP® exam. That decision was subsequently affirmed on appeal by CFP Board's Appeals Commission. Ms. Tapia's Temporary Bar is effective March 15, 2021, through March 15, 2024.

KENTUCKY

Mark F. Kregor (Louisville, Kentucky): In November 2023, the Disciplinary and Ethics Commission (Commission) denied Mr. Kregor's Petition for Fitness Determination and issued an Order of Temporary Bar that prohibits him from applying for or obtaining CFP^® certification for three years. Mr. Kregor was required to file a Petition for Fitness Determination for review by the Commission after he disclosed several events to CFP Board, including (1) that in 2018, he received a 30-day suspension and a $32,000 fine from the Kentucky Department of Financial Institutions; (2) that he was subject to seven customer complaints, arbitrations or civil suits; and (3) that he was permitted to resign from his former firm. After a hearing, the Commission determined that Mr. Kregor did not meet his burden to prove his fitness for CFP^® certification. Accordingly, the Commission issued to Mr. Kregor a Temporary Bar for three years, effective December 6, 2023, through December 6, 2026. To read the Commission's order, click here: Case History 44774.

NEW JERSEY

Jeffrey A. Dattilo (Scotch Plains, New Jersey): In March 2023, the Disciplinary and Ethics Commission issued an order in which Mr. Dattilo received a Temporary Bar that prohibits him from applying for or obtaining CFP® certification for five years, voids the results of his CFP® exam and requires him to complete an additional 100 hours of Continuing Education (CE) credits. The Disciplinary and Ethics Commission found that Mr. Dattilo engaged in Exam Misconduct by participating in a GroupMe chat group titled "March 2021 CFP® Exam," wherein, after taking the March 2021 CFP® exam, Mr. Dattilo disclosed, in whole or in part, nine questions from his March 2021 CFP® exam to the GroupMe chat group members. Mr. Dattilo published exam topics and other content from his March 2021 CFP® exam via telephone, direct messaging and text messaging to the GroupMe chat group and to other individuals. The Disciplinary and Ethics Commission found that Mr. Dattilo attempted to give assistance to candidates who had not yet taken the CFP® exam by communicating with them about his CFP® exam during the March 2021 administration period. As a result, the Disciplinary and Ethics Commission found Mr. Dattilo's conduct violated CFP Board's Pathway to CFP® Certification Agreement, which defines Exam Misconduct, in part, to include (1) "retaining the Exam questions or disclosing the Exam questions in whole or in part to any other person or entity;" (2) "disclosing, publishing, reproducing, or transmitting the contents of the Exam, in whole or in part, in any manner or by any means, for any purpose;" and (3) "attempting to give or receive assistance, or otherwise communicating about the Exam, during the Exam administration." The Disciplinary and Ethics Commission issued to Mr. Dattilo an Order of Temporary Bar of five years with Remedial Work and determined to void his results on the March 2021 CFP® exam. That decision was subsequently affirmed on appeal by CFP Board's Appeals Commission. Mr. Dattilo's Temporary Bar is effective from April 21, 2023, through April 21, 2028.

TENNESSEE

Matthew S. White (Columbia, Tennessee): In November 2023, the Disciplinary and Ethics Commission (Commission) denied Mr. White's Petition for Fitness Determination and issued an Order of Temporary Bar that prohibits him from applying for or obtaining CFP® certification for two years. Mr. White was required to file a Petition for Fitness Determination for review by the Commission after he disclosed to CFP Board that (1) in 2019, his employment was terminated when he disclosed that he had stolen approximately $13,000 from his partner in an outside business, and (2) he filed for Chapter 13 bankruptcy protection in 2020. After a hearing, the Commission determined that Mr. White did not meet his burden to prove his fitness for CFP® certification. Accordingly, the Commission issued to Mr. White a Temporary Bar for two years, effective December 4, 2023, through December 4, 2025. To read the Commission's order, click here: Case History 44520.

REVOCATION

MICHIGAN

Archie A. Blood Jr. (Holland, Michigan): In October 2023, Counsel to the Disciplinary and Ethics Commission ("DEC Counsel") issued an order permanently revoking Mr. Blood's CFP Board certification and his right to use the CFP Board certification marks. On March 8, 2023, CFP Board Enforcement Counsel issued a Notice of Investigation to Mr. Blood related to his facilitation of private securities transactions in the amount of $400,000 with firm clients, without prior authorization from the firm, in violation of both the firm's policies and procedures and Financial Industry Regulatory Authority, Inc. ("FINRA") Rules 3280 and 2010, resulting in FINRA imposing a four-month suspension and a $4,000 fine. Mr. Blood indicated a clear intention not to participate or to cease participation in CFP Board's investigation and to cease using the CFP® certification marks. Pursuant to Article 4.1.b. of CFP Board's Procedural Rules, Enforcement Counsel determined that Mr. Blood was in default and, based on the "seriousness, scope and harmfulness" of Mr. Blood's conduct, filed a Motion for Order of Administrative Revocation ("Motion"), to which Mr. Blood did not file a response. On October 30, 2023, DEC Counsel granted the Motion, and issued to Mr. Blood an Administrative Order of Revocation. To read DEC Counsel's order, click here: Case History 45308.

ABOUT CFP BOARD
CFP Board is the professional body for personal financial planners in the U.S. CFP Board consists of two affiliated organizations focused on advancing the financial planning profession for the public's benefit. CFP Board of Standards sets and upholds standards for financial planning and administers the prestigious CERTIFIED FINANCIAL PLANNERtm certification ? widely recognized by the public, advisors and firms as the standard for financial planners ? so that the public has access to the benefits of competent and ethical financial planning. CFP® certification is held by nearly 100,000 people in the U.S. CFP Board Center for Financial Planning addresses diversity and workforce development challenges and conducts and publishes research that adds to the financial planning profession's body of knowledge.

News published on 5 april 2024 at 14:05 and distributed by: