The Certified Financial Planner Board of Standards announced Tuesday it has taken public disciplinary actions against 22 certified financial planners' right to use the CFP certification mark that included the permanent revocation of the licenses of seven CFPs, the suspension of five CFP licenses, one interim suspension, and letters of admonition to nine other certified financial planners, officials said.
Mark J. Carpenter, CFP, of his Ann Arbor, Mich.-based firm TGBG Financial LLC, had use of his certification mark permanently revoked after the CFP Board in March investigated allegations that Carpenter was involved in a series of fraudulent Ponzi schemes.
According to Michigan's Commissioner of Financial and Insurance Regulation, Carpenter allegedly misappropriated $4 million from customers of Midwest Financial Credit Union where Carpenter's office was located at 2400 Green Road, Ann Arbor.
Washington, D.C.-based CFP Board had originally ordered an interim suspension of Carpenter's certification on March 30, 2010, after the Michigan Department of Energy, Labor and Economic Growth Office of Financial and Insurance Regulation issued a cease and desist order against Carpenter and TGBG Financial Planning LLC from engaging in the offer and sale of securities without first obtaining a registration of the securities. Carpenter and his firm were ordered to cease and desist from engaging in securities transactions as unregistered agents.
The CFP Board has also revoked the licenses of six others. They include:
Robert F. Hockensmith of Glendale, Ariz., for recommending unregistered securities; failing to inform his employer and clients the securities were unregistered; and the sale of unregistered securities in violation of the National Association of Securities Dealers (now known as the Financial Industry Regulatory Authority).
Sean Taylor Moore, of Temecula, Calif., for issuing an unauthorized transaction in a client's account, resulting in Moore's termination by his firm.
David E. Sears of Nokomis, Ill., after the CFP Board's investigation into Sears' 2010 Chapter 7 bankruptcy filing determined that Sears violated the Board's Rules of Conduct.
Algird M. Norkus, Oak Brook, Ill., for allegedly selling fraudulent promissory notes.
Randall G. Knowles, Great Falls, Mon. for allegedly liquidating a client's assets without proper authorization.
Robert W. Polski, of Eugene, Ore., following an investigation into Polski's Chapter 7 bankruptcy filing in 2008 that demonstrated he could not manage his own finances.
Brian P. Troy of Keller, Texas, for allegedly forging signatures, altering account documentation and making misrepresentations to clients to facilitate the fraudulent transfer of approximately $9 million from Texas state employee retirement plans.
The Board also suspended the right to use CFP mark from Brian G. Maher, La Jolla, Calif.; Larry M. Post, Boston, Mass.; Robert Smrekar, Minneapolis, Minn.; Morris Armstrong, Yorktown Heights, N.Y.; John E. Matheny, Mooresville, N.C.; and Russell K. Childs, Spring, Texas.
An interim certificate mark suspension was issued to Diane L. Barriga, of Parkland, Fla.
The Board also issued nine letters of admonition to the following individuals: Bernard R. Michaud, Birmingham, Ala.; Craig Alan Horner, San Diego, Calif.; Patricia W. Wier, Boulder, Colo.; Dale R. Aldieri, Middletown Conn.; Robin S. Davis, Stuart, Fla.; John O. Miller, Lemont, Ill.; John P. Hannan, Skaneateles, N.Y.; William R. Henzey, Olmsted Falls, N.Y.; Stuart L Funke, West Linn, Ore.; and Jay M. Desai, York, Pa.
- Jim McConville