A Highland Beach, Fla., financial planner has been permanently stripped of his right to use the Certified Financial Planner designation because of his involvement in a $3 million scheme to sell unregistered securities to clients, the CFP Board announced Monday.
William Gross is charged in a CFP Board complaint with selling securities that were unregistered or exempt to 55 clients. He also was not registered with the Florida Office of Financial Regulation at the time.
In making the sales, Gross gave false or misleading information to clients by telling them he offered 10 types of financial services that he did not offer and made false statements on his 2015 and 2017 CFP Board ethics questionnaires, the Board said.
The board revoked his right in January to use the CFP mark after Gross failed to answer the CFP complaint in a timely manner. His was among 10 disciplinary actions announced by the CFP Board this week. The CFP Board said it suspended these advisors from using the CFP mark for the following reasons:
• Ryan N. Bowers and Jeffrey A. Laberge, both of San Diego, lost their rights to use the CFP mark for two years as part of a settlement agreement. They agreed with the CFP Board findings that they were principals in a firm that served as the investment advisor for two private funds. While in that position, they approved unreasonable assumptions that resulted in large overstatements of the value of two funds. Each also made misrepresentations to clients and had to pay $50,000 in a civil penalties to the SEC. The Financial Industry Regulatory Authority also suspended Bowers for five months and fined him $25,000.
• Akio L. Bley of Gladwyne, Pa., agreed to a six-month suspension of his right to use the CFP mark after he failed to provide written notice to his firm and failed to get approval from the firm before participating in a private securities transaction that was outside the regular course and scope of his employment with his firm. He also invested substantial sums of his own money and that of a work colleague in a questionable investment that reflected adversely on his fitness as a CFP mark holder and on the CFP mark.
• Justin K. Wine of St. Michaels, Md., agreed to a two-month suspension of his use of the CFP mark after he failed to amend certain forms and failed to obtain approval from his firm for business activities. Finra previously suspended Wine from association with any Finra member for two months and fined him $12,500.
• Daniel C. Sigmon of Raleigh, N.C., agreed to a letter of admonition for telling clients and prospects his compensation was fee only when he accepted commissions for insurance and annuities sales. The fee-only designation has been an on-going issue for the CFP board, which was sued by former CFP mark holders after it admonished them for using the fee-only designation when they accepted some commission payments or their firm accepted commission payments.
• Kable M. Doria of Roseville, Calif., agreed to a letter of admonition after being named a party in a civil action involving his efforts to recruit a CFP professional to join his firm. While trying to recruit the person, Doria obtained confidential client information from recruit’s firm, which he then provided to his employer, and accepted a billing report from the recruit’s firm that contained trade secrets.
• Iain P. Reilly of San Diego agreed to a letter of admonition for impersonating two clients during telephone calls with an insurance company in which he sought to obtain current information and documents on equity indexed annuities held by the clients. Finra had suspended Reilly from associating with any Finra member firm for 30 business days and fined him $5,000.