CFP Board of Standards announces disciplinary actions

According to reports, the Certified Financial Planner Board of Standards announced that it has disciplined 24 advisors, including permanently barring 13 of them from ever again using the Certified Financial Planner (or “CFP”) mark.

The CFP Board revoked the CFP mark rights of the following advisors:

• Gordon M. Budreau of Denver for allegations that he improperly bought and sold shares in customer accounts. Budreau entered into a consent agreement with Financial Industry Regulatory Authority (Finra), under which he was suspended from association with any Finra member for 10 business day and issued a $5,000 fine.

• Larry Lee Crawford of North Newton, Kans., for being named as defendant in an accounting fraud case that is the subject of a Securities and Exchange Commission (SEC) complaint.

• Martha J.C. Hawk of Blountville, Tenn., based on Hawk’s 2011 no-contest plea to one felony count of theft of between $10,000 and $60,000, and one count of forgery.

• David Lesnick of Goodyear, Ariz., based on Lesnick’s 1983 and 2010 Chapter 7 bankruptcies, his failure to cooperate with the CFP Board’s investigation and his alleged misuse of the CFP certification marks.

• James E. Putnam of Menasha, Wis., based on alleged fraud violations that are the subject of an SEC civil lawsuit.

• William B. Smith of Grafton, Mass., based on allegations that Smith stole $1.2 million from a client.

• David P. Soper of Salt Lake City based on his 2009 Chapter 7 Bankruptcy filing and his failure to cooperate with a CFP Board investigation.

• Barbara l. Steinberg of Livingston, N.J., based on her 1999 and 2009 Chapter 7 bankruptcies.

• Daniel J. Trolaro of East Hanover, N.J., based on allegations that Trolaro defrauded nine clients out of more than $1.9 million.

• Sandra M. Venetis of Branchburg, N.J., based on allegations that she misappropriated approximately $11 million by operating a fraudulent multi-million dollar offering.

• Richard M. Yacko of San Diego based on Yacko’s 1994 and 2009 Chapter 7 bankruptcies and his failure to cooperate with the CFP Board’s investigation.

• Russell Wade Young of Irvine, Calif., based on allegations that Young recommended unsuitable investments to a retired client, and made proprietary product recommendations that constituted a conflict of interest.

The same reports indicated that the CFP Board also suspended the rights of six advisors to use the CFP mark : Matthew J. Anderson of Austin, Tex.; Jeffrey G. Best of Westerville, Ohio; Philip C. McMorrow of Methuen, Mass.; Michael Ono of La Mirada, Calif.; R. Michael Slaughter of Charlotte, N.C.; and Frank S. Sparger of Norwood, N.C.

The foregoing information is being provided by The White Law Group.  The White Law Group is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.  The firm represents individuals in FINRA arbitration claims against their brokerage firm or financial professional.

If you believe that you are the victim of securities fraud, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.

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