CFP Board Imposes Public Discipline

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 Public Censures, Suspensions and Permanent Revocations. This release contains information about recent disciplinary actions relating to 19 current or former CFP® professionals. Of these actions, there are 11 Public Censures, three Suspensions, and five Revocations.

The basis for each decision also may be found on CFP Board's website at https://www.cfp.net/verify-a-cfp-professional. At that website, the public may check on any individual's CFP Board disciplinary history and CFP® certification status. The website also provides 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. That 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). For those who are subject to the Financial Industry Regulatory Authority (FINRA) or the U.S. Securities and Exchange Commission (SEC) oversight, the website includes links to FINRA's BrokerCheck and the SEC's Investment Adviser Public Disclosure databases. 

CFP Board's enforcement process is a critical consumer protection. As part of their certification, CFP® professionals agree 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. CFP Board's Procedural Rules set forth the process for investigating matters and imposing discipline 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). If the Commission determines there are grounds for sanction, then it may impose a sanction ranging from a Private Censure or Public Censure to the Suspension or Revocation of the right to use the CFP® marks. 

The Commission meets at least six times a year to provide a fair, unbiased review of any matter in which CFP Board has alleged that a CFP® professional has violated the Code and Standards, or its predecessor Standards. The Commission functions in accordance with the Procedural Rules and reviews all matters on a case-by-case basis, taking into account the details specific to an individual case.

If a Respondent is in default due to a failure to (a) acknowledge receipt of a Notice of Investigation sent by CFP Board Counsel, (b) file an Answer to a Complaint, (c) provide proof of compliance after an Interim Suspension Order or written evidence after a Public Censure, Temporary Bar, or Permanent Bar, or a statement and written evidence after a Suspension, or (d) pay fees assessed by CFP Board, then Respondent will be in default and, based upon CFP Board Counsel's determination of the seriousness, scope, and harmfulness of the allegations, CFP Board Counsel must deliver to Respondent an Administrative Order of Suspension, Administrative Order of Temporary Bar, Administrative Order of Revocation, or an Administrative Order of Permanent Bar. 

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 Code and Standards, or the predecessor Standards.

PUBLIC CENSURE

CALIFORNIA

Charles D. Etzweiler, CFP® (San Diego, California): In January 2021, the Disciplinary and Ethics Commission (Commission) and Mr. Etzweiler entered into a Consent Order pursuant to which the Commission issued to Mr. Etzweiler a Public Censure. The Commission issued its order after determining that Mr. Etzweiler failed to pay federal taxes each year for five consecutive years, generating a history of federal tax liens amounting to more than $263,000. In the Consent Order, Mr. Etzweiler consented to findings that he failed to timely pay his federal tax obligations for several years. Pursuant to the Consent Order, Mr. Etzweiler consented to findings that his conduct violated Rule 6.5 of the Rules of Conduct, providing grounds for the sanction imposed. Accordingly, the Commission issued to Mr. Etzweiler a Public Censure.

Grant Ter-Avanesyan, CFP® (Dublin, California): In February 2021, the Disciplinary and Ethics Commission (Commission) and Mr. Ter-Avanesyan entered into a Consent Order pursuant to which Mr. Ter-Avanesyan agreed that CFP Board would issue a Public Censure. In the Consent Order, Mr. Ter-Avanesyan consented to findings that he failed to perform his professional services with dedication to the lawful objectives of his firm by obtaining and retaining reimbursement for a 2012 computer purchase to which he was not entitled under the firm's Computer Equipment Purchase Assistance Program. These actions resulted in his resignation of employment in January 2018. Mr. Ter-Avanesyan also consented to a finding that, in an August 2019 Cautionary Action Letter, the Financial Industry Regulatory Authority, Inc. (FINRA) found that his conduct with respect to the computer reimbursement violated FINRA Rule 2010, which states that "every member…shall observe high standards of commercial honor and just and equitable principles of trade." As a result, in the Consent Order, Mr. Ter-Avanesyan consented to findings that his conduct violated Rules 5.1 and 6.5 of the Rules of Conduct, providing grounds for the sanction imposed. Accordingly, the Commission issued to Mr. Ter-Avanesyan a Public Censure.

COLORADO

Jeffrey A. Grimes, CFP® (Colorado Springs, Colorado): In January 2021, the Disciplinary and Ethics Commission (Commission) issued an order in which Mr. Grimes received a Public Censure and Thirty (30) hours of remedial education in the principal topic areas of Ethics and/or Professional Conduct and Regulation. The Commission issued its order after determining that Mr. Grimes (1) dropped two undergraduate courses, prior to completion, and received reimbursement from the university directly to him when he had used his employer's education benefits to pay for the courses; (2) submitted altered transcripts with changed dates to his employer; and (3) did not provide his employer with documentation of the courses being dropped or that funds were deposited back into his personal account. The Commission determined that Mr. Grimes' conduct violated Rules 5.1, 6.2, and 6.5 of the Rules of Conduct, providing grounds for the sanction imposed. Accordingly, the Commission issued to Mr. Grimes a Public Censure and Thirty (30) hours of remedial education in the principal topic areas of Ethics and/or Professional Conduct and Regulation.

FLORIDA

James A. Colley, CFP® (Lake Placid, Florida): In February 2021, the Disciplinary and Ethics Commission (Commission) and Mr. Colley entered into a Consent Order in which Mr. Colley agreed that CFP Board would issue a Public Censure.  In the Consent Order, Mr. Colley consented to findings that, in April 2018, he entered into a Consent Order with the Florida Office of Financial Regulation on behalf of himself and his company, James A. Colley, Inc., of which he is the sole owner. The 2018 Florida Consent Order found that Mr. Colley and his firm: (1) failed to disclose on the firm's Form ADV for three years a 2012 Order against his firm for failure to file financial statements; (2) failed to properly disclose billing practices to clients; (3) made false and misleading statements regarding the firm's economic connection to an outside company; (4) failed to concurrently send invoices to clients; (5) maintained custody of client funds and securities; (6) failed to enter into written advisory agreements with more than one client; (7) failed to disclose whether written advisory agreements granted discretionary power to the advisor; and (8) directly or indirectly published, circulated, or distributed a false or misleading advertisement. As part of the 2018 Florida Consent Order, Mr. Colley and his firm agreed to cease and desist from the conduct at issue and paid a $4,000.00 fine. Further, Mr. Colley failed to disclose the Consent Order to CFP Board within 30 days as then-required by Article 13.2 of the Disciplinary Rules and Procedures. Pursuant to the settlement agreement, Mr. Colley consented to findings that this conduct violated Rules 2.1, 4.3, and 6.2 of CFP Board's Rules of Conduct, providing grounds for the sanction imposed. Accordingly, the Commission issued to Mr. Colley a Public Censure.

MINNESOTA

Michael J. Corbett, CFP® (Osseo, Minnesota): In March 2021, the Disciplinary and Ethics Commission (Commission) and Mr. Corbett entered into a Consent Order pursuant to which Mr. Corbett received a Public Censure. In the Consent Order, Mr. Corbett consented to findings that he was terminated from his firm in 2019 for failing to follow the required signature guarantee protocol, which two regulators inquired about. Mr. Corbett admitted to applying a signature guarantee stamp to a client's annuity distribution form when the client was not present. Under the signature guarantee stamp policy, Mr. Corbett could only apply the signature guarantee stamp when he was physically present at the time the client signed the document. As a result of Mr. Corbett's misuse of the signature guarantee stamp, the carrier rejected the annuity distribution form and the client was unable to surrender the annuity prior to the annuity owner's death, when the value of the annuity was higher than after the annuity owner's death. Mr. Corbett also consented to a finding that he made a misleading statement to CFP Board when he failed to disclose his termination or regulatory investigations in response to questions on his Ethics Declaration form. Pursuant to the Consent Order, Mr. Corbett also consented to findings that his conduct violated Rules 4.4, 5.1, and 6.2 of the Rules of Conduct, providing grounds for the sanction imposed. Accordingly, the Commission issued to Mr. Corbett a Public Censure.

NEW YORK

David Beston, CFP® (New York, New York): In March 2021, the Disciplinary and Ethics Commission (Commission) and Mr. Beston entered into a Consent Order pursuant to which Mr. Beston received a Public Censure. In the Consent Order, Mr. Beston consented to CFP Board's findings that he entered into a Letter of Acceptance, Waiver and Consent with the Financial Industry Regulatory Authority, Inc. (FINRA), pursuant to which FINRA imposed a five-month suspension and a $5,000 fine and required Mr. Beston to disgorge $7,500. FINRA imposed this discipline after determining that Mr. Beston took non-public, personal information of clients (including names, account values, and some customers' account numbers) from his firm and sold some of that information to another registered representative at another FINRA member firm. Pursuant to the Consent Order, Mr. Beston consented to CFP Board's findings that his conduct violated Standard E.2. of the Code of Ethics and Standards of Conduct, providing grounds for the sanction imposed. Accordingly, the Commission issued to Mr. Beston a Public Censure.

NORTH CAROLINA

Peyton K. Gravely, Jr., CFP® (Mount Airy, North Carolina): In February 2021, the Disciplinary and Ethics Commission (Commission) and Mr. Gravely entered into a Consent Order in which Mr. Gravely agreed that CFP Board would issue a Public Censure. In the Consent Order, Mr. Gravely consented to findings that he was terminated from his firm in 2019 for discretionary trading without written authorization. Mr. Gravely also consented to a finding that the Financial Industry Regulatory Authority, Inc. (FINRA) found in a 2019 Cautionary Action Letter (CAL) that his conduct with respect to discretionary accounts violated NASD Rule 2510(b), which states that no member or registered representative shall exercise any discretionary power in a customer's account unless such customer has given prior written authorization to a stated individual or individuals and the account has been accepted by the member, as evidence in writing by the member or partner, officer or manager, duly designated by the member, in accordance with Rule 3010. Mr. Gravely also consented to a finding that he misled CFP Board by failing to disclose his termination or FINRA's investigation on his Ethics Disclosure forms. Pursuant to the Consent Order, Mr. Gravely also consented to findings that his conduct violated Rules 4.3, 5.1, and 6.2 of the Rules of Conduct, providing grounds for the sanction imposed. Accordingly, the Commission issued to Mr. Gravely a Public Censure.

VIRGINIA

Charles B. Atwill, CFP® (Richmond, Virginia): In March 2021, the Disciplinary and Ethics Commission (Commission) and Mr. Atwill entered into a Consent Order in which Mr. Atwill agreed that CFP Board would issue a Public Censure. In the Consent Order, Mr. Atwill consented to CFP Board's findings that in January 2020, he entered into a Settlement Order with the Virginia State Corporation Commission (SCC) on behalf of himself and his company, AFCG, LLC, of which he is the managing member. The Settlement Order with SCC contained findings that Mr. Atwill and his firm: (1) violated state law by conducting business in the State of Virginia for 11 months after his and his company's registrations expired; and (2) submitted a false and misleading affidavit to the SCC during its investigation into Mr. Atwill's expired registration. As part of the SCC Settlement Order, Mr. Atwill and his firm agreed to refrain from conducting business without registration in the future and paid $3,000 in fines.  Pursuant to the Consent Order, Mr. Atwill consented to CFP Board's findings that Mr. Atwill's conduct violated Rules 4.3 and 6.5 of CFP Board's Rules of Conduct, providing grounds for the sanction imposed. Accordingly, the Commission issued to Mr. Atwill a Public Censure.

VERMONT

Mark C. Giometti, CFP® (Warren, Vermont): In March 2021, the Disciplinary and Ethics Commission (Commission) and Mr. Giometti entered into a Consent Order in which Mr. Giometti agreed that CFP Board would issue a Public Censure. In the Consent Order, Mr. Giometti consented to CFP Board's findings that he was professionally disciplined by the State of Massachusetts for violating Section 201(c) of the Massachusetts General Laws by engaging in unregistered investment advisory activity in the State from 2008 to 2019. Mr. Giometti also consented to CFP Board's finding that he failed to timely disclose the Final Order to CFP Board within 30 days of entry. Pursuant to the Consent Order, Mr. Giometti also consented to CFP Board's findings that his conduct violated Rules 4.3, and 6.2 of the Rules of Conduct, providing grounds for the sanction imposed. Accordingly, the Commission issued to Mr. Giometti a Public Censure.

TEXAS

Jonathan M. Hurley, CFP® (Fort Worth, Texas): In December 2020, CFP Board issued an order in which Mr. Hurley received a Public Censure. This discipline followed an appeal of an August 2020 decision by the Disciplinary and Ethics Commission (Commission). The Code and Standards Enforcement Committee of CFP Board (Enforcement Committee, formerly known as the Appeals Committee) affirmed the Commission's findings that Mr. Hurley obtained reimbursement for a 2016 computer purchase to which he was not entitled pursuant to his firm's Computer Equipment Purchase Assistance Program, and that he was permitted to resign from his firm in April 2018 for this conduct. The Enforcement Committee affirmed the Commission's determination that Mr. Hurley's conduct violated Rules 4.3, 5.1, and 6.5 of the Rules of Conduct and provided grounds for discipline pursuant to Article 3(a) of the Disciplinary Rules and Procedures. CFP Board issued to Mr. Hurley a Public Censure.

Harold G. Minton, CFP® (Houston, Texas): In January 2021, the Disciplinary and Ethics Commission (Commission) and Mr. Minton entered into a Consent Order pursuant to which Mr. Minton received a Public Censure. In the Consent Order, Mr. Minton consented to findings that he failed to perform his professional services with dedication to the lawful objectives of his firm by obtaining and retaining reimbursement for a 2015 computer purchase to which he was not entitled pursuant to the firm's Computer Equipment Purchase Assistance Program, resulting in his resignation from employment in May 2018. Mr. Minton also consented to a finding that the Financial Industry Regulatory Authority, Inc. (FINRA) found in an August 2019 Cautionary Action Letter that Mr. Minton's conduct with respect to the computer reimbursement violated FINRA Rule 2010, which states that "every member…shall observe high standards of commercial honor and just and equitable principles of trade." Pursuant to the Consent Order, Mr. Minton consented to findings that his conduct violated Rules 5.1 and 6.5 of the Rules of Conduct, providing grounds for the sanction imposed. Accordingly, the Commission issued to Mr. Minton a Public Censure.

SUSPENSION

CALIFORNIA

Michael S. Behner (San Diego, California): In January 2021, CFP Board issued an administrative order suspending Mr. Behner's right to use the CFP® certification marks for one year and one day. This discipline followed Mr. Behner's failure to respond to CFP Board's Notice of Investigation ("NOI") and Second NOI within the required timeframe. CFP Board sought to investigate allegations that Mr. Behner failed to timely pay his federal and state taxes, in multiple years, resulting in the Internal Revenue Service and the state of California filing tax liens against him. Mr. Behner failed to acknowledge receipt of an NOI, as required by Article 1.1 of the Procedural Rules. Pursuant to Article 4.1 of the Procedural Rules, Mr. Behner was in default.  In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope and harmfulness of Mr. Behner's conduct, CFP Board issued an Administrative Order of Suspension, suspending Mr. Behner's certification for one year and one day. Mr. Behner's suspension was effective as of February 4, 2021.

DISTRICT OF COLUMBIA

Marie Isabel Laurion (Washington, DC): In January 2021, CFP Board issued an administrative order suspending Ms. Laurion's right to use the CFP® certification marks for one year and one day. This discipline followed Ms. Laurion's failure to respond to or otherwise acknowledge CFP Board's Notice of Investigation ("NOI") and Second NOI within the required timeframe. CFP Board sought to investigate allegations that Ms. Laurion failed to timely pay her federal taxes, in multiple years, resulting in the Internal Revenue Service filing tax liens against her. Ms. Laurion failed to acknowledge receipt of an NOI, as required by Article 1.1 of the Procedural Rules. Pursuant to Article 4.1 of the Procedural Rules, Ms. Laurion was in default. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope and harmfulness of Ms. Laurion's conduct, CFP Board issued an Administrative Order of Suspension, suspending Ms. Laurion's certification for one year and one day. Ms. Laurion's suspension was effective as of February 4, 2021.

PENNSYLVANIA

Robert E. Kauffman (Lancaster, PA): In January 2021, CFP Board issued an administrative order suspending Mr. Kauffman's right to use the CFP® certification marks. This discipline followed Mr. Kauffman's failure to acknowledge and respond to the Notice of Investigation (NOI) CFP Board sent him on May 19, 2020. The NOI requested that Mr. Kauffman provide information on a civil suit filed by the U.S. Securities and Exchange Commission against Mr. Kauffman and his company on May 13, 2020, for breach of fiduciary duty. On June 18, 2020, CFP Board issued a second NOI. Mr. Kauffman also failed to respond to that NOI. According to Article 4.1 of CFP Board's Procedural Rules, Mr. Kauffman is in default for his failure to acknowledge and provide an answer to the NOIs. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope and harmfulness of Mr. Kauffman's conduct, CFP Board issued an Administrative Order of Suspension, suspending Mr. Kauffman's certification for one year and one day. Mr. Kauffman's suspension was effective as of February 4, 2021.

PERMANENT REVOCATION

CALIFORNIA

Marco Rivera (Windsor, California): In January 2021, CFP Board issued an administrative order permanently revoking Mr. Rivera's rights to use the CFP® certification marks. This sanction followed Mr. Rivera's failure to file an Answer to CFP Board's Complaint alleging that Mr. Rivera violated CFP Board's Terms and Conditions when he refused to respond to CFP Board's requests for information and Notice of Failure to Cooperate with an investigation regarding two federal tax liens. Mr. Rivera declined to file an Answer to CFP Board's Complaint within 30 calendar days as required by Article 3.2 of the Procedural Rules. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope and harmfulness of Mr. Rivera's conduct, CFP Board issued an Administrative Order of Revocation. Mr. Rivera's revocation was effective as of February 8, 2021.

GEORGIA

David Harrison Miller (Atlanta, Georgia): In January 2021, CFP Board issued an administrative order permanently revoking Mr. Miller's right to use the CFP® certification marks. This sanction followed Mr. Miller's failure to file an Answer to CFP Board's Complaint. CFP Board's Complaint alleged that Mr. Miller failed to cooperate with CFP Board's investigation into a customer complaint and a related termination. CFP Board's Complaint alleged that Mr. Miller's conduct violated Rule 6.1 of the Rules of Conduct. Mr. Miller declined to file an Answer to CFP Board's Complaint within 30 calendar days of the date of service, as required by Article 3.2 of the Procedural Rules. Pursuant to Article 4.1.a. of the Procedural Rules, Mr. Miller has been deemed in default. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope and harmfulness of Mr. Miller's conduct CFP Board issued an Administrative Order of Revocation. Mr. Miller's administrative revocation was effective as of February 6, 2021.

F. Stephen Lambert (Decatur, Georgia): In January 2021, CFP Board issued an administrative order permanently revoking Mr. Lambert's rights to use the CFP® certification marks. This sanction followed Mr. Lambert's failure to file an Answer to CFP Board's Complaint alleging that Mr. Lambert violated CFP Board's Terms and Conditions when he refused to respond to CFP Board's requests for information and Notice of Failure to Cooperate. CFP Board's requests for information pertained liens filed against Mr. Lambert by the Georgia Department of Labor from 2016 to 2019. Mr. Lambert declined to file an Answer to CFP Board's Complaint within 30 calendar days as required by Article 3.2 of the Procedural Rules. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope and harmfulness of Mr. Lambert's conduct, CFP Board issued an Administrative Order of Revocation. Mr. Lambert's revocation was effective as of February 8, 2021.

NEVADA

Wesley W. Griffin (Sparks, Nevada):  In January 2021, CFP Board issued an administrative order permanently revoking Mr. Griffin's rights to use the CFP® certification marks.  This sanction followed Mr. Griffin's failure to file an Answer to CFP Board's Complaint alleging that Mr. Griffin violated CFP Board's Terms and Conditions when he refused to respond to CFP Board's requests for information and Notice of Failure to Cooperate.  CFP Board's requests for information pertained to outstanding federal tax liens imposed against Mr. Griffin in 2010 and 2012.  Mr. Griffin declined to file an Answer to CFP Board's Complaint within 30 calendar days as required by Article 3.2 of the Procedural Rules.  In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope and harmfulness of Mr. Griffin's conduct, CFP Board issued an Administrative Order of Revocation. Mr. Griffin's revocation was effective as of February 8, 2021.

TENNESSEE

Bryant Caveness (Kingsport, Tennessee): In January 2021, CFP Board issued an administrative order permanently revoking Mr. Caveness's right to use the CFP® certification marks. This sanction followed Mr. Caveness's failure to provide proof of compliance with an automatic interim suspension imposed by CFP Board after it received evidence that Mr. Caveness was permanently barred from the Financial Industry Regulatory Authority, Inc. (FINRA) in all capacities on July 22, 2020. FINRA's bar was based on its findings that Mr. Caveness: (1) failed to respond to FINRA's June 25, 2020 request for the production of information and documents pursuant to FINRA Rule 8210 relating to FINRA's investigation of Respondent's potential receipt of checks from senior customers; and (2) acknowledged, on July 9, 2020, that he received FINRA's request and would not produce the information or documents requested at any time. FINRA determined that Mr. Caveness's failure to respond to FINRA's request warranted a permanent bar under FINRA Rule 8210 and 2010. In accordance with Article 4.2 of the Procedural Rules, based on CFP Board's determination of the seriousness, scope and harmfulness of Mr. Caveness's conduct, CFP Board issued an Administrative Order of Revocation. Mr. Caveness's revocation was effective as of February 6, 2021. 

This article originally appeared on PR Newswire.