CFP Board Discloses Sanctions on Certified Financial Planners
The Certified Financial Planner Board of Standards, Inc. (CFP Board) is a non-profit organization that sets and upholds standards for financial planning. CFP Board has recently reportedly imposed sanctions on several current or former CFP® professionals. These sanctions allegedly range from public censures to revocations of the right to use the CFP Board certification marks.
|
STATE |
NAME |
LOCATION |
SANCTION |
|
Florida |
Lake Mary |
Public Censure |
|
|
Indiana |
Chesterton |
Suspension |
|
|
Indiana |
Valparaiso |
Suspension |
|
|
Oregon |
Beaverton |
Suspension |
|
|
California |
Orange |
Temporary Bar |
|
|
California |
Del Mar |
Temporary Bar |
|
|
Florida |
Land O’ Lakes |
Temporary Bar |
|
|
California |
Mill Valley |
Revocation |
|
|
Delaware |
Clayton |
Revocation |
|
|
Florida |
Orlando |
Revocation |
|
|
Texas |
Spicewood |
Revocation |
|
|
Texas |
Colleyville |
Revocation |
|
|
Kentucky |
Lexington |
Permanent Bar |
Bars and Revocations
CALIFORNIA – Lawrence A. Krause (Mill Valley, California): In July 2023, CFP Board reportedly permanently revoked Lawrence Krause’s right to use the CFP Board certification marks due to his alleged failure to acknowledge receipt of CFP Board’s Notice of Investigation. This action stemmed from allegations that Krause made unauthorized trades in a client’s account and settled the client’s complaint without disclosing it to his firm.
TEXAS – Stephen Y. Kwan (Spicewood, Texas): In July 2023, CFP Board reportedly permanently revoked Stephen Kwan’s right to use the CFP Board certification marks because he allegedly failed to respond to CFP Board’s Complaint within the required time frame. CFP Board was reportedly investigating Kwan’s suspension as an investment adviser representative.
KENTUCKY – Douglas Hawkins (Lexington, Kentucky): In July 2023, CFP Board reportedly issued an administrative order permanently barring Douglas Hawkins from applying for or obtaining the CFP Board certification marks. Hawkins was reportedly convicted for investment fraud, securities fraud, and mail fraud in connection with an alleged scheme to defraud investors in a real estate portfolio. The court allegedly found that he made misstatements, omissions, and concealed conflicts of interest. CFP Board alleged violations of ethical standards related to client interests, fairness, integrity, and regulatory compliance.
Failure to Supervise
All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees. When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
If your broker has defrauded you, you may be able to file a FINRA claim against your brokerage firm. FINRA arbitration can be a complex and technical process, and having an experienced attorney who is knowledgeable about securities law can greatly increase your chances of success.
If you have concerns regarding investments you purchased through a 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. For more information on The White Law Group, visit www.whitesecuritieslaw.com.
