CFP Board Censures Improper CFP® Professional Conduct

Certified Financial Planner Board of Standards, Inc. (CFP Board) announced today public disciplinary actions against the following individuals’ right to use the CFP® certification marks, 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 23 CFP® professionals. Of these actions, there were 3 administrative revocations, 9 suspensions, 4 interim suspensions and 7 letters of admonition.

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 (Code of Ethics), Rules of Conduct and Financial Planning Practice Standards (Practice Standards). The Standards set forth the ethical standards for financial planners who hold the CFP® certification.

CFP Board enforces its ethical standards by investigating incidents of alleged unethical behavior. In cases where violations are found, CFP Board may impose discipline 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 and Procedures (Disciplinary Rules) set forth the process for investigating matters and imposing discipline where violations have been found.

The actions in this release result from final decisions of the Disciplinary and Ethics Commission (Commission).  The Commission meets 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.

LETTERS OF ADMONITION

ARIZONA

Mark E. Rauguth, CFP® (Mesa): In November 2014, following a review by CFP Board’s Disciplinary and Ethics Commission, CFP Board issued an order stating that this Public Letter of Admonition be issued to Mr. Rauguth. This discipline followed Mr. Rauguth’s entry into a settlement agreement with CFP Board in which he consented to CFP Board’s findings that he improperly used his broker-dealer’s signature guarantee stamp for non-firm customers and failed to maintain photocopies of the guaranteed documents.  Mr. Rauguth’s conduct resulted in a suspension and fine from the Financial Industry Regulatory Authority, Inc., which he failed to disclose to CFP Board in writing within 30 days as required by Article 13.2 of CFP Board’s Disciplinary Rules and Procedures.  Mr. Rauguth consented to violations of Rules 201, 406, 606(a), 606(b) and 607 of CFP Board’s Code of Ethics and Rules 5.1, 6.1 and 6.5 of CFP Board’s Rules of Conduct, providing grounds for discipline pursuant to Articles 3(a), 3(d) and 3(e) of CFP Board’s Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. Rauguth with regard to the above-mentioned conduct.

CALIFORNIA

Darin L. Gibson, CFP® (Irvine): In December 2014, following a review by CFP Board’s Disciplinary and Ethics Commission, CFP Board issued an order stating that this Public Letter of Admonition be issued to Mr. Gibson, a former CFP® professional. This discipline followed the Commission’s determination that Mr. Gibson failed to mutually agree with a client upon the services to be provided when he provided material elements of financial planning but entered into an agreement that indicated Mr. Gibson would provide only investment analysis. The Commission determined that Mr. Gibson’s conduct violated Rule 1.3 of CFP Board’s Rules of Conduct and Practice Standard 100-1, providing grounds for discipline pursuant to Articles 3(a) and 3(b) of CFP Board’s Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. Gibson with regard to the above-mentioned conduct. 

FLORIDA

Jason K. Chepenik, CFP® (Winter Park): In December 2014, following a review by CFP Board’s Disciplinary and Ethics Commission, CFP Board issued an order stating that this Public Letter of Admonition be issued to Mr. Chepenik. This discipline followed Mr. Chepenik’s entry into a settlement agreement with CFP Board in which he consented to CFP Board’s findings that he: 1) was convicted of DUI in June 2008; 2) failed to disclose the DUI conviction to CFP Board within 10 days in violation of Article 12.2 of CFP Board’s Disciplinary Rules and Procedures in effect at that time; 3) failed to disclose his June 2008 DUI conviction on his September 2008 CFP^® certification renewal application; 4) during the period from December 2010 through October 2011, engaged in investment advisory business in Florida without being properly registered, in violation of Florida Statutes; 5) failed to disclose Florida’s Office of Financial Regulation’s Final Order to Florida’s Department of Financial Services within 30 days, which resulted in a January 2013 Consent Order requiring him to pay a $1,000 fine; 6) was convicted for Reckless Driving in September 2013; 7) failed to report his September 2013 Reckless Driving conviction to CFP Board within 30 days as required by Article 13.2 of the Disciplinary Rules and Procedures; and 8) failed to disclose his June 2009 DUI conviction on his September 2010 and October 2012 Renewal Applications. Mr. Chepenik consented to violations of Rules 606(b), 607 and 612 of CFP Board’s Code of Ethics and Rules 4.3, 4.4, 6.1, 6.2 and 6.5 of CFP Board’s Rules of Conduct, providing grounds for discipline pursuant to Articles 3(a), 3(c), 3(e) and 3(g) of CFP Board’s Disciplinary Rules and Procedures.  Accordingly, the Commission admonished Mr. Chepenik with regard to the above-mentioned conduct. 

Duncan C. DeWahl, CFP® (Maitland): In December 2014, following a review by CFP Board’s Disciplinary and Ethics Commission, CFP Board issued an order stating that this Public Letter of Admonition be issued to Mr. DeWahl. This discipline followed Mr. DeWahl’s entry into a settlement agreement with CFP Board in which he consented to CFP Board’s findings that he signed the names of six clients on suitability forms and failed to report his Financial Industry Regulatory Authority, Inc. suspension to CFP Board, in violation of Article 13.2 of CFP Board’s Disciplinary Rules and Procedures. Mr. DeWahl consented to violations of Rules 1.4, 4.3, 4.4, 5.1 and 6.5 of CFP Board’s Rules of Conduct, providing grounds for discipline pursuant to Articles 3(a), 3(d) and 3(e) of CFP Board’s Disciplinary Rules and P