Subject: Business Update

CFP Board Imposes Public Sanctions on Nine Additional Individuals

Certified Financial Planner Board of Standards, Inc. (CFP Board), a nonprofit organization that certifies nearly 100,000 CFP® professionals in the United States, in addition to its release earlier today, announced public sanctions against nine more 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, presenting 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

INDIANA

Thomas Foster, CFP® (Terre Haute, Indiana): In December 2023, the Disciplinary and Ethics Commission (Commission) accepted a Consent Order in which Mr. Foster agreed to a Public Censure for violations of two Rules of Conduct: Rule 4.3, which provides that a CFP® professional must be in compliance with all applicable regulatory requirements governing professional services provided to the client; and Rule 5.1, which provides, in relevant part, that a CFP® professional who is an employee/agent shall perform professional services with dedication to the lawful objectives of the employer/principal. Mr. Foster participated in a program through which advisors retiring from his firm would transition client accounts to and share commissions with an active advisor, pursuant to the terms of an agreement. Transactions in accounts subject to the agreement were to be coded with a production number shared by the active and retired advisors, to effect the proper allocation of the commissions on those transactions. For 150 trades between September 2013 and May 2017, Mr. Foster improperly changed the shared production number that had been populated by his firm's system to his personal representative code. In doing so, he violated his firm's policies with respect to the agreement, caused his firm to maintain inaccurate trade confirmations and received approximately $21,000 in commissions that should have been credited to a former advisor. Mr. Foster was terminated by his firm as a result of this conduct, and in 2022, Mr. Foster entered into a Letter of Acceptance, Waiver and Consent with the Financial Industry Regulatory Authority, Inc., agreeing to a one-month suspension and a $2,500 fine. Pursuant to the Consent Order, the Commission issued Mr. Foster an Order of Public Censure. To read the Commission's order, click here: Case History 42838.

NEVADA

Robert P. Baffa Jr., CFP® (Las Vegas, Nevada): In January 2024, the Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Baffa received a Public Censure. In March 2018, Mr. Baffa entered into an Administrative Consent Order with the State of Nevada, Securities Division, consenting to findings that he failed to enter into written investment advisory agreements with clients and failed to provide clients with itemized fee invoices when deducting advisory fees from client accounts in violation of NASAA Model Rule 102(a)(4)-1(p) and 102(e)(1)-1 (adopted by Nevada), and he agreed to pay a civil penalty of $7,500.00 and an inspection fee of $1,000.00. Then, in October 2021, Mr. Baffa entered into a similar Administrative Consent Order with Nevada, consenting to findings that his firm did not disclose the 2018 Order on its Form ADV Parts I and II; did not properly disclose certain relationships and fees on its Form ADV; failed to file an updated Form ADV within 90 days after the end of the fiscal year in violation of Nevada state law NAC § 90.380(3); failed to file its annual updating amendments to the Form ADV in a timely manner for the year 2019 in violation of NAC § 90.380(3); and failed to provide a General Ledger and Balance Sheet, nor provide a Profit and Loss Statement that was GAAP-compliant in violation of NAC § 90.387 (which the Nevada Security Division had already noted in its previous examination). As a result, the Commission found that Mr. Baffa violated Standard A.8.a. of CFP Board's Code of Ethics and Standards of Conduct (for conduct after June 2020), which provides that "a CFP® professional must comply with the laws, rules and regulations governing Professional Services," and that Mr. Baffa violated Rule 4.3 of CFP Board's Rules of Conduct (for conduct up to June 2020), which provides that a CFP® professional "shall be in compliance with applicable regulatory requirements governing professional services provided to the client." Accordingly, the Commission issued Mr. Baffa an Order of Public Censure. To read the Commission's order, click here: Case History 44628.

NEW YORK

Brendan Ercole, CFP® (Penfield, New York): In January 2024, the Disciplinary and Ethics Commission (Commission) accepted a Consent Order in which Mr. Ercole agreed to a Public Censure for violating CFP Board's Code of Ethics and Standards of Conduct (Code and Standards). In January and February 2023, in anticipation of joining another firm, Mr. Ercole improperly removed over 200 customers' nonpublic personal information from his former firm, including dates of birth, drivers' license numbers and Social Security numbers, without the firm's or customers' knowledge or consent. Mr. Ercole also compiled prefilled new account packets containing nonpublic customer information and then caused these pre-filled forms to be saved outside of his former firm's secure system and disseminated them to customers by mail and email. On February 17, 2023, Mr. Ercole entered into a Letter of Acceptance, Waiver and Consent with the Financial Industry Regulatory Authority, Inc. ("FINRA") consenting to findings that he failed to observe high standards of just and equitable principles of trade in violation of FINRA Rule 2010 and consented to a 15-business day FINRA suspension and a $7,500 fine. As a result, Mr. Ercole violated Standard A.8 of the Code and Standards, which provides that a CFP® professional must comply with the law, rules and regulations governing Professional Services. Pursuant to his Consent Order with CFP Board, the Commission issued Mr. Ercole an Order of Public Censure. To read the Commission's order, click here: Case History 45186.

TEXAS

Stefan H. Nensala, CFP® (Leander, Texas): In February 2023, the Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Nensala received a Public Censure. The Commission determined that Mr. Nensala violated Standard A.2.b. of the Code of Ethics and Standards of Conduct (Code and Standards), which provides that a CFP® professional may not, directly or indirectly, in the conduct of Professional Services make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, and Standard E.2. of the Code and Standards when he impersonated a client during a call with a third-party financial institution in April 2021. The Commission also determined that Mr. Nensala's failure to notify CFP Board of his termination from his firm for this conduct violated Standard E.3.j. of the Code and Standards, which requires a CFP® professional to provide written notice to CFP Board within thirty (30) calendar days after the CFP® professional has been terminated for cause from employment or permitted to resign in lieu of termination when the cause of the termination or resignation involved allegations of dishonesty, unethical conduct or compliance failures. Accordingly, the Commission determined to issue Mr. Nensala an Order of Public Censure.

SUSPENSION

NEW YORK

Sharon Hayut (New York, New York): In March 2024, the Disciplinary and Ethics Commission (Commission) accepted a Consent Order in which Ms. Hayut agreed to a Suspension of One Year and One Day for violating CFP Board's Code of Ethics and Standards of Conduct (Code and Standards). In the Consent Order, Ms. Hayut consented to findings that she entered into a Letter of Acceptance, Waiver and Consent ("AWC") with the Financial Industry Regulatory Authority, Inc. ("FINRA") on June 13, 2023, in which FINRA found that she failed to observe high standards of just and equitable principles of trade in violation of FINRA Rule 2010 and imposed a four-month FINRA suspension and a $10,000 fine. In the AWC, FINRA found that, in January and May of 2021, Ms. Hayut accepted two checks from a senior customer of her firm who was also one of her long-time clients. Both checks were made payable to the synagogue to which Ms. Hayut belonged, and the funds from the checks were applied to Ms. Hayut's account and were used to pay various expenses. FINRA found in the AWC that the two checks were gifts from her customer, and that Ms. Hayut's acceptance of these gifts violated her firm's gift policies. In the Consent Order with CFP Board, Ms. Hayut consented that she violated Standard A.8.a of the Code and Standards, which provides that a CFP® professional must comply with the law, rules and regulations governing Professional Services; and Standard D.2.a of the Code and Standards, which provides that a CFP® professional will be subject to discipline by CFP Board for violating policies and procedures of the CFP® Professional's Firm that do not conflict with the Code and Standards. Pursuant to this Consent Order with CFP Board, the Commission issued Ms. Hayut a Suspension of One Year and One Day. The suspension is effective from March 6, 2024, through March 7, 2025. To read the Commission's order, click here: Case History 44005.

REVOCATION

CALIFORNIA

Brian R. Gilder (Chatsworth, California): In January 2024, Counsel to the Disciplinary and Ethics Commission (DEC Counsel) issued an order in which Mr. Gilder received an administrative revocation of his CFP Board certification and his right to use the CFP Board certification marks. On March 24, 2023, CFP Board Enforcement Counsel issued a Notice of Investigation to Mr. Gilder related to criminal charges for wire fraud and conspiracy to commit wire fraud pending in the United States District Court for the Southern District of New York. Through his counsel, Mr. Gilder indicated a clear intention not to participate in CFP Board's investigation. Pursuant to Article 4.1.b. of CFP Board's Procedural Rules, Enforcement Counsel determined that Mr. Gilder was in default and, based on the seriousness, scope and harmfulness of Mr. Gilder's conduct, filed a Motion for Order of Administrative Revocation (Motion), to which Mr. Gilder did not file a response. On January 12, 2024, DEC Counsel granted the Motion and issued Mr. Gilder an Order of Administrative Revocation. To read DEC Counsel's order, click here: Case History 45870.

Robert M. Vance (Mi Luk Village, California): In January 2024, Counsel to the Disciplinary and Ethics Commission (DEC Counsel) issued an order in which Mr. Vance received an administrative revocation of his CFP Board certification and his right to use the CFP Board certification marks. On June 3, 2022, CFP Board Enforcement Counsel issued a Notice of Investigation to Mr. Vance related to a Financial Industry Regulatory Authority, Inc. arbitration filed against him. Mr. Vance indicated a clear intention not to continue to participate in CFP Board's investigation. Pursuant to Article 4.1.b. of CFP Board's Procedural Rules, Enforcement Counsel determined that Mr. Vance was in default and, based on the seriousness, scope and harmfulness of his conduct, filed a Motion for Order of Administrative Revocation (Motion), to which Mr. Vance did not file a response. On January 12, 2024, DEC Counsel granted the Motion and issued Mr. Vance an Order of Administrative Revocation. To read DEC Counsel's order, click here: Case History 44420.

ILLINOIS

William J. Blyth (Chicago, Illinois): In January 2024, Counsel to the Disciplinary and Ethics Commission (DEC Counsel) issued an order in which Mr. Blyth received an administrative revocation of his CFP Board certification and his right to use the CFP Board certification marks. On April 5, 2023, CFP Board Enforcement Counsel issued a Notice of Investigation to Mr. Blyth related to a March 11, 2019, Cease and Desist Order issued against Blyth and Associates by the U.S. Securities and Exchange Commission. Mr. Blyth indicated a clear intention to cease participation in CFP Board's investigation. Pursuant to Article 4.1.b. of CFP Board's Procedural Rules, Enforcement Counsel determined that Mr. Blyth was in default and, based on the seriousness, scope and harmfulness of his conduct, filed a Motion for Order of Administrative Revocation (Motion), to which Mr. Blyth did not file a response. On January 18, 2024, DEC Counsel granted the Motion and issued Mr. Blyth an Order of Administrative Revocation. To read DEC Counsel's order, click here: Case History 44229.

PERMANENT BAR

GEORGIA

Jeffrey K. Kirkpatrick (Dacula, Georgia): In February 2024, Counsel to the Disciplinary and Ethics Commission (DEC Counsel) issued an administrative order permanently barring Mr. Kirkpatrick from applying for or obtaining CFP Board certification. This sanction followed the expiration of Mr. Kirkpatrick's CFP® certification and his failure to file an Answer to CFP Board Enforcement Counsel's Complaint within the required time frame. In its Complaint, Enforcement Counsel alleged Mr. Kirkpatrick failed to satisfy the cooperation requirements of Sections d and k of CFP Board's Terms and Conditions of Certification and Trademark License, and of CFP Board's Procedural Rules. Specifically, Enforcement Counsel alleged in its Complaint that Mr. Kirkpatrick engaged in a continuous course of misconduct relating to his failure to cooperate, including failure to respond to Enforcement Counsel's requests for information and documentation and a Notice of Failure to Cooperate. As set forth in the Complaint, Enforcement Counsel discovered that Mr. Kirkpatrick was the subject of an investigation by the U.S. Securities and Exchange Commission (SEC) and, as part of a settlement of that matter, Mr. Kirkpatrick consented to entry of the SEC's findings that, while Mr. Kirkpatrick was responsible for administering his firm's compliance program, he knew or should have known that the firm's compliance program was inadequately implemented. The SEC (i) found that Mr. Kirkpatrick willfully aided and abetted and caused his firm to violate Section 206(4) of the Advisers Act of 1940 and Rule 206(4)-7 thereunder; (ii) ordered that Mr. Kirkpatrick cease and desist from future violations and not act in a supervisory or compliance capacity, with the right to reapply to regain that status in five years; and (iii) imposed a $15,000 civil penalty. Mr. Kirkpatrick did not file an Answer to CFP Board's Complaint. Accordingly, Enforcement Counsel determined that Mr. Kirkpatrick was in default pursuant to Article 4.1.e. of the Procedural Rules and, based on the seriousness, scope and harmfulness of his conduct, filed a Motion for Order of Administrative Permanent Bar (Motion), to which Mr. Kirkpatrick did not file a response. On February 12, 2024, DEC Counsel granted the Motion and issued Mr. Kirkpatrick an Order of Administrative Permanent Bar. Mr. Kirkpatrick's Administrative Permanent Bar was effective as of March 13, 2024. To read DEC Counsel's order, click here: Case History 44223.

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 15:05 and distributed by: