CFP Board Announces Sanctions on Certified Financial Planners
The Certified Financial Planner Board of Standards, Inc. (
CFP Board), a non-profit organization dedicated to setting and enforcing standards for financial planning, has recently disclosed sanctions against several current or former CFP® professionals. These sanctions reportedly include actions ranging from public censures to the revocation of the right to use the CFP Board certification marks.
Revocations and Permanent Bars – August 2024
Revocations and permanent bars are serious disciplinary actions taken against financial professionals who violate the Board’s standards.
Revocation: A revocation occurs when the CFP Board permanently removes a professional’s right to use the CFP® certification marks. This means that the individual can no longer advertise or represent themselves as a Certified Financial Planner™. Revocation is one of the most severe sanctions the CFP Board can impose, typically reserved for significant violations of its Code of Ethics and Standards of Conduct. Once revoked, the professional cannot regain the certification.
Permanent Bar: A permanent bar prevents an individual from ever applying for or obtaining the CFP® certification in the future. This is a lifetime ban from the certification process, typically applied in cases of severe or repeated misconduct. A permanent bar means that even if the individual was not currently certified, they would be prohibited from becoming certified at any time in the future.
Both actions are designed to protect the public and maintain the integrity of the financial planning profession by ensuring that only those who adhere to the highest ethical standards can use the CFP® certification marks.
Andrew C. Grezlak (Furlong, Pennsylvania)
In July 2024, Andrew Grezlak reportedly lost his CFP certification after a series of violations. He was permitted to resign from his firm following a client complaint but then failed to respond to inquiries from FINRA about his resignation. His alleged lack of cooperation led to his suspension and eventually a permanent bar from associating with any FINRA member firm, according to his
broker record. Due to the seriousness and impact of his actions, the CFP Board revoked his certification.
Elaine M. Zito (Scottsdale, Arizona)
Elaine Zito was permanently barred from obtaining CFP certification in June 2024. She faced an arbitration claim from a former client who alleged that she was negligent and breached her fiduciary duty by recommending high-commission, complex, and risky investments. Despite communicating with the CFP Board, Zito reportedly failed to provide substantive responses to their investigation requests. This resulted in a permanent bar from applying for CFP certification. Elaine Zito was affiliated with Newbridge Securities before the bar. She reportedly has
seven customer disputes on her record.
Jeffrey Allen Russell (San Clemente, California)
Jeffrey Allen Russell was permanently barred from obtaining CFP certification in July 2024 due to unauthorized financial activities. He was reportedly terminated by his employer in May 2021 for making unauthorized transactions, including purchasing money market mutual funds for 610 customers and a mutual fund for six customers without their consent. These actions generated $2,999 in commissions. Russell reportedly agreed to a six-month suspension, a $5,000 fine, and the return of the commissions to FINRA. After he ceased participating in the CFP Board’s investigation and failed to respond to their complaint, he was permanently barred from certification.
Lawrence B. Kaplan (Lyme, Connecticut)
Lawrence Kaplan was reportedly permanently barred from obtaining CFP certification in July 2024. In December 2022, he entered into a Consent Order with the Connecticut Department of Banking, admitting that he violated state securities laws. Specifically, Kaplan allegedly submitted false billing invoices to the Department, claiming they had been sent to clients when they had not. Additionally, he allegedly failed to maintain required client billing records for several clients. He was reportedly fined $10,000 and ordered to cease and desist from future violations. After failing to cooperate with the CFP Board’s investigation, he was permanently barred from certification.
Thomas M. Chadwick (New London, New Hampshire)
Thomas Chadwick was reportedly permanently barred from obtaining CFP certification in July 2024 due to significant misconduct. He allegedly caused his clients to lose over $3.4 million by recommending unsuitable, complex, and leveraged investment products without properly assessing each client’s risk tolerance, age, financial situation, and goals. He also purportedly dishonestly used his clients’ credentials to access their investment accounts without permission. As a result, Chadwick was permanently barred from obtaining a securities license in Vermont and ordered to pay over $1.6 million in restitution. His failure to respond to the CFP Board’s complaint led to a permanent bar from certification.
Failure to Supervise
Broker-dealers must properly supervise their employees and have systems in place to detect misconduct. If they fail to do so, they may be liable for investment losses caused by their employees’ actions.
If your broker has violated securities laws, such as making unsuitable investments, you may be able to file a
FINRA claim against the brokerage firm. FINRA arbitration can be complex, so having an experienced securities attorney can improve your chances of success.
Free Consultation
If you have concerns about your financial advisor and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
Last modified: August 9, 2024
