WASHINGTON--(BUSINESS WIRE)--Certified Financial Planner Board of Standards, Inc. (CFP Board), a nonprofit organization with more than 100,000 CFP® professionals who have made a commitment to meet CFP Board’s ethical and competency standards, today announced actions taken to uphold its ethical standards, imposing sanctions on 17 individuals.

Upholding CFP Board’s High Ethical Standards

CFP® professionals make a commitment to CFP Board to abide by its Code of Ethics and Standards of Conduct (Code and 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 upholds its ethical standards by investigating alleged violations of CFP Board’s Code and Standards (or its earlier Standards of Professional Conduct) by CFP® professionals and alleged violations of the Pathway Agreement by those pursuing initial CFP® certification. Where there is probable cause to believe there are grounds for a sanction, CFP Board enforcement counsel presents the alleged violations formally in writing to CFP Board’s Disciplinary and Ethics Commission (Commission). CFP Board also assesses an applicant’s ethical fitness for certification in accordance with the Fitness Standards. CFP Board’s Procedural Rules governs the process for investigating and pursuing disciplinary action for alleged misconduct, and for imposing sanctions where violations have been found.

CFP Board’s Disciplinary and Ethics Commission meets at least six times a year to review alleged violations by CFP® professionals or candidates — also called “Respondents” — on a case-by-case basis, considering the details specific to each individual case. Applying the Procedural Rules, the Commission may impose a sanction if the Commission finds that there are grounds to do so. Respondents and CFP Board may appeal Commission orders.

CFP Board public sanctions include Public Censures, Suspensions, Temporary Bars, Revocations and Permanent Bars 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 responding to the allegations, a CFP® professional may receive an Administrative Order of Suspension, Temporary Bar, Revocation or Permanent Bar. Administrative Orders may be appealed.

CFP Board is a professional body and not a federal, state or self-regulatory organization. CFP Board issues sanctions against a Respondent, not against a Respondent’s firm. 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 17 Individuals

The sanctions summarized below address ethical violations relating not only to professional services provided by CFP® professionals to clients but also to other misconduct reflecting adversely on the individual’s integrity or fitness as a certificant, on the CFP^® marks or on the profession. Sanctions may also result from a CFP® professional’s failure to abide by their firm’s policies and procedures or to exercise reasonable care in their supervision of subordinates.

PUBLIC CENSURE

MICHIGAN

Chuanbing Rong, CFP® (Canton, Michigan): In October 2024, the Disciplinary and Ethics Commission (Commission) issued an order imposing a Public Censure on Mr. Rong for violating CFP Board’s Code and Standards. On December 16, 2022, Respondent entered a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority, Inc. (FINRA) consenting to a two-month suspension from associating with any FINRA member and a $5,000 fine for violating FINRA Rules 3270 and 2010. In the AWC, Mr. Rong consented to findings that he failed to disclose to his firm an outside business activity that earned him $168,000 between March 2020 and March 2022. The Commission found that Mr. Rong violated Standards A.8.a. and D.2.a. of CFP Board’s Code and Standards, which provide that a CFP® professional must comply with the laws, rules and regulations governing professional services, and that a CFP® professional will be subject to discipline for violating policies and procedures of the CFP® professional’s firm. The Commission’s order also requires Mr. Rong to complete 10 hours of additional continuing education. Read the Commission’s order: Case History 44261.

PENNSYLVANIA

Kenneth L. Rapp, CFP^® (Mechanicsburg, Pennsylvania): In June 2022, the Code and Standards Enforcement Committee of the Board of Directors of CFP Board affirmed a November 2021 decision by the Disciplinary and Ethics Commission (Commission) to impose a Public Censure on Mr. Rapp. The Commission determined that Mr. Rapp failed to timely pay taxes to the Internal Revenue Service (IRS) from 2008 to 2012 and from 2013 to 2016, resulting in the IRS filing three federal tax liens against him totaling more than $250,000. The Commission determined that Mr. Rapp’s conduct violated Rule 6.5 of the Rules of Conduct, which provides that a certificant shall not engage in conduct that reflects adversely on his integrity or fitness as a certificant, on the CFP^® marks or on the profession. The Commission’s order also requires Mr. Rapp to perform additional remedial work by certifying every six months for three years from the effective date of the order his progress toward resolution of the tax liens. Read the Commission’s order: Case History 32186.

SUSPENSION

CALIFORNIA

John D. Nguyen (Placentia, California): In November 2024, the Disciplinary and Ethics Commission (Commission) issued an order suspending Mr. Nguyen’s right to use the CFP® certification marks for two years. The Commission found that Mr. Nguyen violated Rule 2.1 of CFP Board’s Rules of Conduct by mischaracterizing the risks associated with alternative investments he recommended to his advisory clients, a married couple, over the course of several years. Under Rule 2.1, a CFP® professional must not communicate false or misleading information to clients about the potential benefits of his professional services or fail to disclose facts where that disclosure is necessary to avoid misleading the clients. Mr. Nguyen told the clients that he would recommend only “secure” and “safe” investments and that the real estate investment trusts (REITs) and other non-traded securities they purchased based on his recommendations presented “minimal”, “very low” and even “the lowest” risk. He described one of the REIT’s dividend payments as “guaranteed” when it was not. The Commission found Mr. Nguyen’s statements about these alternative investments, which presented significant risk, to be inaccurate and misleading. Mr. Nguyen’s suspension is effective from December 11, 2024, through December 10, 2026. Read the Commission’s order: Case History 42597.

MASSACHUSETTS

Paul J. Meaney (Natick, Massachusetts): In October 2024, counsel to the Disciplinary and Ethics Commission issued an order suspending Mr. Meaney’s CFP Board certification and his right to use the CFP Board certification marks. On March 8, 2023, CFP Board enforcement counsel delivered a notice of investigation to Mr. Meaney related to a Financial Industry Regulatory Authority, Inc. (FINRA) arbitration filed against him on December 30, 2022. Mr. Meaney failed to acknowledge the notice or respond to follow-up inquiries and was therefore in default under Article 4.1.a. of CFP Board’s Procedural Rules. Based on its determination of the seriousness, scope and harmfulness of Mr. Meaney’s conduct, enforcement counsel filed a motion seeking an administrative order of suspension, which counsel for the Commission granted on October 22, 2024. The order was effective November 21, 2024. Read the order: Case History 45695.

NEW HAMPSHIRE

Richard A. Bean Jr. (Manchester, New Hampshire): In July 2024, the Appeals Commission of CFP Board affirmed an August 2023 order issued by the Disciplinary and Ethics Commission (Commission) suspending Mr. Bean’s right to use the CFP® certification marks for two years and requiring 60 hours of additional continuing education. The Commission found that Mr. Bean’s several misdemeanor convictions for alcohol-related offenses between 2007 and 2020 violated Rule 6.5 of CFP Board’s Rules of Conduct, which states that a CFP® professional may not engage in conduct that reflects adversely on their integrity or fitness as a CFP® professional, on the CFP® marks or on the profession. Mr. Bean also failed repeatedly to report these convictions to CFP Board, in violation of Rule 6.2 of CFP Board’s Rules of Conduct and Standard E.3 of its Code and Standards, and he violated Standard E.5 of the Code and Standards by falsely answering “No” on his CFP Board Ethics Declaration when asked whether he had been the subject of a criminal conviction. Based on Mr. Bean’s suspension by the New Hampshire Insurance Department for failing to report the alcohol-related offenses and child support arrearages, the Commission also found that Mr. Bean had violated Rule 4.3 of the Rules of Conduct, which requires a CFP® professional to comply with applicable regulations governing professional services provided to a client. Mr. Bean’s suspension is effective from July 17, 2024, through July 16, 2026. Read the Commission’s order: Case History 31955.

TEMPORARY BAR

KENTUCKY

Mark T. Lamkin (Louisville, Kentucky): In August 2024, the Appeals Commission of CFP Board affirmed an order issued in January 2024 by the Disciplinary and Ethics Commission (Commission) barring Mr. Lamkin from applying for CFP® certification for one year and one day. In March 2020, Mr. Lamkin entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority, Inc. (FINRA) in which he consented to findings that between December 2011 and August 2017, he borrowed a total of $1,265,000 from a client and longtime friend in violation of FINRA Rules 2010 and 3240. Payments totaling $500,000 continued to be paid under the terms of two of the loans after Mr. Lamkin was certified as a CFP® professional on December 1, 2017. Mr. Lamkin agreed to a three-month suspension from associating with any FINRA member and was fined $7,500. Two years later, in March 2022, Mr. Lamkin agreed to an order entered by the Kentucky Department of Financial Institutions in which he was fined $1,000 and subjected to 12 months of heightened supervision for transacting business in Kentucky as an investment adviser and investment adviser representative without being properly registered. The Kentucky order states that Mr. Lamkin failed to remove himself as signatory on his firm’s business account while the account continued to receive revenue earned by other registered persons associated with his firm. The Kentucky regulator agreed to waive its three-month suspension of Mr. Lamkin’s investment adviser registration so long as he did not violate Kentucky or federal securities laws in the three years after he entered the Kentucky order. The Commission found that Mr. Lamkin had violated Rule 3.6 of CFP Board’s Rules of Conduct by borrowing money from a client, as described in the FINRA AWC, and Rule 4.3 of the Rules of Conduct by failing to comply with applicable regulatory requirements governing professional services provided to the client, as described in the Kentucky order. Citing both regulatory matters, the Commission found that Mr. Lamkin also violated Rule 6.5 of the Rules of Conduct, which states that a CFP® professional may not engage in conduct that reflects adversely on their integrity or fitness as a CFP® professional, on the CFP® marks or on the profession. Mr. Lamkin’s CFP® certification expired on September 30, 2019. His temporary bar is effective August 22, 2024, through August 23, 2025. Read the Commission’s order: Case History 32405.

MINNESOTA

Clayton Robert Benway (Minneapolis, Minnesota): In November 2024, the Disciplinary and Ethics Commission (Commission) issued an order denying Mr. Benway’s petition for a determination that he is fit for CFP® certification and barring him from applying for CFP^® certification for four years. Mr. Benway was required to petition the Commission after he disclosed three alcohol-related criminal incidents to CFP Board — a misdemeanor DUI conviction in 2015 and two 2023 guilty pleas to misdemeanor disorderly conduct, one in January and another in July. The 2023 incidents resulted in probation sentences, the second of which he expects to complete in April 2025. The Commission determined that Mr. Benway did not prove his ethical fitness for CFP^® certification, finding his petition premature given that his third alcohol-related offense occurred while he was still on probation for his second. The Commission’s order requires Mr. Benway to achieve a minimum of five consecutive years without an incident that may reflect adversely on his integrity, the profession or the CFP Board certification marks. The temporary bar is effective December 9, 2024, through December 9, 2028. Read the Commission’s order: Case History 45735.

MISSOURI

Robert V. Judge (Fenton, Missouri): In November 2024, the Disciplinary and Ethics Commission (Commission) issued an order barring Mr. Judge from applying for CFP® certification for one year and one day. The Commission found that, before his certification expired in April 2024, Mr. Judge violated Standards A.8.a. and A.2.a. of CFP Board’s Code and Standards and Rules 4.3 and 6.5 of its Rules of Conduct, which require a CFP® professional to comply with the laws, rules and regulations governing professional services and to not engage in conduct that reflects adversely on their integrity or fitness as a certificant, on the CFP® marks or on the profession. On August 3, 2023, Mr. Judge entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority, Inc. (FINRA) in which he consented to findings that from March 13, 2020, through March 1, 2021, he permitted his business partner to falsify client signatures on dozens of account documents, adding his own signature to 14 of them. The AWC states that Mr. Judge violated FINRA Rule 2010 by not observing high standards of commercial honor and just and equitable principles of trade, and he violated FINRA Rules 4511 by causing his firm to maintain inaccurate books and records. Mr. Judge consented to a four-month suspension and a $5,000 fine. In its order, the Commission found that Mr. Judge should have known that his conduct was inappropriate given his more than 33 years of experience and Series 24 license as a General Securities Principal. Mr. Judge’s temporary bar is effective from December 16, 2024, through December 17, 2025. Read the Commission’s order: Case History 45776.

REVOCATION

FLORIDA

Jacqueline Noveck (Largo, Florida): In November 2024, counsel to the Disciplinary and Ethics Commission issued an administrative order revoking Ms. Noveck’s CFP® certification and permanently barring her from future CFP® certification. On June 20, 2024, CFP Board enforcement counsel filed a complaint against Ms. Noveck alleging that she had engaged in conduct reflecting adversely on her integrity and fitness as a CFP® professional, on the CFP® marks and on the profession, in violation of Standard E.2. of the Code and Standards. The complaint cited Ms. Noveck’s failure to comply with a court order directing her to pay attorneys’ fees and costs incurred by a party she had sued in Florida state court. Because Ms. Noveck failed to file an answer to the complaint, she was in default under Article 4.1.e. of CFP Board’s Procedural Rules. Based on its determination of the seriousness, scope and harmfulness of Ms. Noveck’s conduct, enforcement counsel filed a motion for an administrative order revoking her CFP® certification, which counsel for the Commission granted on November 6, 2024. The order was effective December 6, 2024. Read the order: Case History 45516.

TEXAS

Clayton James Gross (Parker, Texas): In October 2024, counsel to the Disciplinary and Ethics Commission issued an order revoking Mr. Gross’ CFP Board certification and his right to use the CFP Board certification marks. On October 31, 2023, CFP Board enforcement counsel delivered a notice of investigation to Mr. Gross regarding a municipal warrant issued to him by Collin County, Texas, for a second-degree felony charge of aggravated assault with a deadly weapon. Mr. Gross failed to acknowledge receipt of the notice or respond to follow-up inquiries and was therefore in default under Article 4.1.a. of CFP Board’s Procedural Rules. Based on its determination of the seriousness, scope and harmfulness of Mr. Gross’ conduct, enforcement counsel filed a motion seeking an administrative order of revocation, which counsel for the Commission granted on October 16, 2024. The order was effective November 15, 2024. Read the order: Case History 46021.

PERMANENT BAR

FLORIDA

Don E. Ingram (Winter Haven, Florida): In October 2024, counsel to the Disciplinary and Ethics Commission issued an order permanently barring Mr. Ingram from CFP® certification. On September 5, 2023, CFP Board enforcement counsel filed a complaint against Mr. Ingram citing his settlement of an enforcement action against him by the Financial Industry Regulatory Authority, Inc. (FINRA) on September 27, 2022. In the settlement, Mr. Ingram consented to findings that between September 2016 and September 2018, he recommended unsuitable investments to numerous clients, causing them to incur more than $300,000 in unnecessary expenses that benefited him and his firm, not the clients. Mr. Ingram consented to findings that he violated FINRA Rules 2111(a), 2010, 3110(a) and 31101(b). FINRA imposed a six-month suspension and a $15,000 fine on Mr. Ingram and ordered him and his firm to pay restitution joint and severally. Because Mr. Ingram indicated that he would not participate in CFP Board’s disciplinary proceedings and did not file an answer to its complaint, he was in default under Article 4.1.e. of CFP Board’s Procedural Rules. Based on its determination of the seriousness, scope and harmfulness of Mr. Ingram’s conduct, enforcement counsel filed a motion seeking an administrative order that would permanently bar him from CFP® certification, which counsel for the Commission granted on October 30, 2024. The permanent bar was effective November 29, 2024. Read the order: Case History 44813.

Anthony F. Prieto Jr. (Tampa, Florida): In October 2024, counsel to the Disciplinary and Ethics Commission issued an order permanently barring Mr. Prieto from CFP® certification. In June 2022, CFP Board enforcement counsel began investigating allegations in a complaint the Securities and Exchange Commission (SEC) filed against Mr. Prieto in May 2022. The SEC’s complaint asserts that Mr. Prieto and others violated the federal securities laws by defrauding individuals with disabilities into believing that they were placing their assets in two pooled trusts managed by a non-profit association in compliance with regulatory requirements related to Medicaid and Social Security benefits. The SEC complaint alleges that the defendants used the non-profit as a shell company to wrongfully divert fees to their for-profit corporation. In April 2024, Mr. Prieto, through his counsel, indicated his clear intention not to participate in CFP Board’s investigation and was therefore in default under Article 4.1 of CFP Board’s Procedural Rules. Based on a determination of the seriousness, scope and harmfulness of Mr. Prieto’s conduct, enforcement counsel filed a motion for administrative order imposing a permanent bar against him, which counsel for the Commission granted on October 11, 2024. The order was effective November 10, 2024. Read the order: Case History 44417.

MARYLAND

Shimshon Plotkin (Chevy Chase, Maryland): In October 2024, counsel to the Disciplinary and Ethics Commission issued an order permanently barring Mr. Plotkin from CFP® certification. In February 2024, CFP Board enforcement counsel filed a complaint against Mr. Plotkin citing five arbitrations against him, three of which settled for $440,000, claiming that Mr. Plotkin had recommended unsuitable investments in non-traded real estate investment trusts and alternative investments, including recommendations made as part of a financial plan he had prepared for the clients. Based on this conduct, CFP Board’s complaint asserted violations of Rules 1.4 and 4.5 of its Rules of Conduct, which together require a CFP® professional to place the interests of the client ahead of their own, to act as a fiduciary when providing financial planning and to make or implement only recommendations that are suitable for the client. Because Mr. Plotkin chose not to file an answer to the complaint, he was in default under Article 4.1 of CFP Board’s Procedural Rules. Based on the seriousness, scope and harmfulness of his conduct, enforcement counsel filed a motion seeking an administrative order imposing a permanent bar against Mr. Plotkin, which counsel for the Commission granted on October 11, 2024. The order was effective November 10, 2024. Read the order: Case History 33385.

MINNESOTA

Todd J. Ostendorf (Avon, Minnesota): In October 2024, counsel to the Disciplinary and Ethics Commission issued an order permanently barring Mr. Ostendorf from applying for or obtaining CFP Board certification. On May 18, 2023, CFP Board enforcement counsel delivered a notice of investigation to Mr. Ostendorf regarding his Chapter 7 bankruptcy filing earlier that month. Because Mr. Ostendorf declined to provide the information requested by the notice, he was in default under Article 4.1.b. of CFP Board’s Procedural Rules. Based on its determination of the seriousness, scope and harmfulness of Mr. Ostendorf’s conduct, enforcement counsel filed a motion seeking an administrative order imposing a permanent bar against him, which counsel for the Commission granted on October 21, 2024. The order was effective November 20, 2024. Read the order: Case History 45546.

NEW JERSEY

Jerry Rice (Fair Haven, New Jersey): In September 2024, counsel to the Disciplinary and Ethics Commission issued an order permanently barring Mr. Rice from applying for or obtaining CFP® certification. In September 2021, Mr. Rice entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority, Inc. (FINRA) in which he consented to a six-month suspension and a $10,000 fine based on findings that he had circumvented his firm’s written procedures by accepting $477,000 in monetary gifts from a senior customer and being named as beneficiary in the customer’s will. CFP Board enforcement counsel initiated its investigation in early 2022. After initially responding to enforcement counsel’s notice of investigation, Mr. Rice failed to respond to subsequent requests for information. In February 2024, enforcement counsel sent Mr. Rice a notice of failure to cooperate under Article 1.3 of CFP Board’s Procedural Rules and instructed him that he had 14 days to cure this failure. Mr. Rice failed to do so and was therefore in default under Article 4.1 of the Procedural Rules. Based on a determination of the seriousness, scope and harmfulness of Mr. Rice’s conduct, enforcement counsel filed a motion seeking an administrative order that would permanently bar him from CFP® certification, which counsel for the Commission granted on September 27, 2024. The order was effective October 26, 2024. Read the order: Case History 43555.

NEW YORK

James Patrick Fox (Buffalo, New York): In October 2024, counsel to the Disciplinary and Ethics Commission issued an order permanently barring Mr. Fox from CFP Board certification. CFP Board enforcement counsel began investigating Mr. Fox after he was terminated by his firm in February 2022. On June 26, 2023, enforcement counsel filed a complaint against Mr. Fox alleging that he had engaged in conduct reflecting adversely on his integrity and fitness as a CFP® professional, on the CFP® marks and on the profession, in violation of Standard E.2.a. of the Code and Standards. The complaint cited criminal charges brought against Mr. Fox in the United States District Court for the Western District of New York and his January 2024 guilty plea to one count of sex trafficking. Mr. Fox failed to file an answer to the complaint, indicated that he would not participate further in CFP Board’s investigation and was therefore in default under Article 4.1.b. of CFP Board’s Procedural Rules. Based on its determination of the seriousness, scope and harmfulness of Mr. Fox’s conduct, enforcement counsel filed a motion seeking an administrative order that would permanently bar him from CFP® certification, which counsel for the Commission granted on October 30, 2024. The order was effective on November 29, 2024. Read the order: Case History 44196.

VIRGINIA

Brandon James Bennett (Virginia Beach, Virginia): In November 2024, counsel to the Disciplinary and Ethics Commission issued an order permanently barring Mr. Bennett from CFP Board certification. On November 27, 2023, CFP Board enforcement counsel filed a complaint against Mr. Bennett alleging that he had engaged in conduct reflecting adversely on his integrity and fitness as a CFP® professional, on the CFP® marks and on the profession, in violation of Standard E.2.a. of the Code and Standards. The complaint cited Mr. Bennett’s self-reported criminal charges in the Circuit Court of the City of Chesapeake, Virginia, and his June 2022 guilty plea to possession of a Schedule I/II substance, possession of a concealed firearm and driving under the influence. Mr. Bennett failed to file an answer to the complaint and was therefore in default under Article 4.1.e. of CFP Board’s Procedural Rules. Based on its determination of the seriousness, scope and harmfulness of Mr. Bennett’s conduct, enforcement counsel filed a motion seeking an administrative order that would permanently bar him from CFP® certification, which counsel for the Commission granted on November 6, 2024. The order was effective on December 6, 2024. Read the order: Case History 44213.

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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 PLANNER® 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 more than 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.