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 20 CFP® professionals. Of these actions, there were 5 administrative revocations, 3 suspensions, 2 interim suspensions and 10 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 by CFP® professionals. 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.

PUBLIC LETTERS OF ADMONITION

CALIFORNIA

Richard J. Griswold, CFP® (Simi Valley): In April 2015, CFP Board’s Disciplinary and Ethics Commission (Commission) ordered that a Public Letter of Admonition be issued to Mr. Griswold. This discipline followed the Commission’s findings that Mr. Griswold filed for Chapter 7 Bankruptcy in 2000 and again in 2014, which reflected adversely on his integrity and fitness as a CFP® professional, upon the CFP® marks and upon the profession. Mr. Griswold’s conduct violated of Rule 6.5 of CFP Board’s Rules of Conduct, providing grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. Griswold with regard to the above-mentioned conduct.

COLORADO

Jason G. Hovde, CFP® (Castle Rock): In April 2015, CFP Board’s Disciplinary and Ethics Commission (Commission) accepted an offer of settlement pursuant to which it issued a Public Letter of Admonition to Mr. Hovde. In the offer of settlement, Mr. Hovde consented to CFP Board’s findings that he filed for Chapter 7 Bankruptcy in 1997 and again in 2010, which reflected adversely on his integrity and fitness as a CFP® professional, upon the CFP® marks and upon the profession. Mr. Hovde consented to violations of Rules 6.1 and 6.5 of CFP Board’s Rules of Conduct, providing grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. Hovde with regard to the above-mentioned conduct.

FLORIDA

Nathaniel E. Goldenberg, CFP® (Tampa): In April 2015, CFP Board’s Disciplinary and Ethics Commission (Commission) ordered that a Public Letter of Admonition be issued to Mr. Goldenberg and that he complete 12 hours of remedial education in the principal topic of Professional Conduct and Fiduciary Responsibility. This discipline followed the Commission’s findings that Mr. Goldenberg resubmitted old forms or affixed clients’ signatures from old forms onto new forms approximately 12 times, which resulted in his discharge from his firm. Mr. Goldenberg’s conduct violated Rules 4.4, 5.1 and 6.5 of CFP Board’s Rules of Conduct, providing grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. Goldenberg with regard to the above-mentioned conduct.

Mark A. Lurz, CFP® (Bradenton): In April 2015, CFP Board’s Disciplinary and Ethics Commission (Commission) accepted an offer of settlement pursuant to which it issued a Public Letter of Admonition to Mr. Lurz. In the offer of settlement, Mr. Lurz consented to CFP Board’s findings that he: 1) was convicted of driving under the influence on two occasions and once for violation of a restricted license; 2) failed to notify CFP Board that his address changed within 45 days of the change; and 3) failed to notify CFP Board upon being convicted of a crime within 30 days of learning of the conviction. Mr. Lurz consented to violations of Rules 6.3 and 6.5 of CFP Board’s Rules of Conduct, providing grounds for discipline pursuant to Articles 3(a), 3(c) and 3(e) of CFP Board’s Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. Lurz with regard to the above-mentioned conduct.

Steve I. Shrago, CFP® (Sun City Center): In April 2015, CFP Board’s Disciplinary and Ethics Commission (Commission), ordered that a Public Letter of Admonition be issued to Mr. Shrago. This discipline followed the Commission’s findings that Mr. Shrago placed his interests ahead of those of his client when he recommended the client liquidate her variable annuity and use the proceeds to purchase mutual funds.  The Commission found that Mr. Shrago acted hastily and without reviewing the options available to the client within the variable annuity.  The Commission also found that Mr. Shrago recommended the client liquidate her variable annuity without: 1) becoming the agent of record on the variable annuity; 2) handling the liquidation through his employer; 3) seeking approval from his employer for conducting outside business activities; and 4) knowing the cost basis of the variable annuity prior to making the recommendation. The Commission found that Mr. Shrago admitted to these findings when he agreed to a Stipulation and Consent agreement with the State of Florida. Mr. Shrago’s conduct violated Rules 1.4, 4.1, 4.3, 4.4, 5.1 and 6.5 of CFP Board’s Rules of Conduct, providing grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. Shrago with regard to the above-mentioned conduct.

KENTUCKY

Garret Lee Headley, CFP® (Lexington): In April 2015, CFP Board’s Disciplinary and Ethics Commission (Commission) accepted an offer of settlement pursuant to which it issued a Public Letter of Admonition to Mr. Headley. In the offer of settlement, Mr. Headley consented to CFP Board’s findings that he publicly misrepresented his compensation method as “fee-only” to clients and prospective clients on CFP Board’s “Find a CFP® Professional” search tool when he was entitled to receive and actually received commissions as a registered representative with a broker-dealer and/or as a licensed insurance agent. Mr. Headley consented to violations of Rules 2.1, 2.2(a) and 6.5 of CFP Board’s Rules of Conduct, providing grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures. Accordingly, the Commission admonished Mr. Headley with regard to the above-mentioned conduct.

MINNESOTA

Kelly F. Guncheon, CFP® (Minnetonka): In April 2015, CFP Board’s Disciplinary and Ethics Commission (Commission) accepted an offer of settlement pursuant to which it issued a Public Letter of Admonition to Mr. Guncheon.  In the offer of settlement, Mr. Guncheon consented to