CFP Board Imposes Public Sanctions on Seven Individuals

Certified Financial Planner Board of Standards, Inc. (CFP Board), a nonprofit organization that certifies more than 100,000 CFP® professionals in the United States, today announced public sanctions against seven current or former CFP® professionals, or candidates for CFP® certification.

CFP Board sets and enforces high standards of competence and ethics for all CFP® professionals. When CFP Board learns that a CFP® professional has not abided by the ethical standards, CFP Board investigates and takes enforcement action.

CFP Board’s Enforcement Process

As part of their certification, CFP® professionals make a commitment to CFP Board to abide by CFP Board’s Code of Ethics and Standards of Conduct (Code and Standards) or its predecessor, the Standards of Professional Conduct (Standards), which included the Code of Ethics and Professional Responsibility, Rules of Conduct and Financial Planning Practice Standards. Individuals on the pathway to CFP® certification make a commitment to abide by CFP Board’s Pathway to CFP® Certification Agreement (Pathway Agreement). CFP Board’s Code and Standards benefits and protects the public and advances financial planning as a distinct and valuable profession. Compliance with the Code and Standards is critical to the integrity of the CFP Board certification marks.

CFP Board’s Procedural Rules sets forth the process for investigating matters and imposing sanctions where violations have been found. CFP Board enforces its ethical standards by investigating alleged violations and, where there is probable cause to believe there are grounds for sanction, presents a Complaint containing the alleged violations to CFP Board’s Disciplinary and Ethics Commission (Commission). The Commission meets at least six times a year to review any matter in which CFP Board has alleged that a CFP® professional has violated CFP Board’s Code and Standards or its predecessor Standards, or an individual pursuing initial CFP® certification has violated the Pathway Agreement. The Commission functions in accordance with the Procedural Rules and reviews all matters on a case-by-case basis, considering the details specific to each individual case. If the Commission determines there are grounds for sanction, then it may impose a sanction. Commission orders may be appealed by a Respondent or CFP Board pursuant to the Procedural Rules.

CFP Board public sanctions include Public Censures, Suspensions, Temporary Bars, Revocations and Permanent Bars of the right to use the CFP Board certification marks. In certain circumstances, such as when a CFP® professional is in default due to failure to acknowledge receipt of a notice of investigation or failure to file an answer, a CFP® professional may receive an Administrative Order of Suspension, Temporary Bar, Revocation or Permanent Bar. Administrative Orders may be appealed.

More information on CFP Board’s enforcement process can be found at CFP.net/enforcement. In addition, at CFP.net/verify, CFP Board provides the public with:

• An individual’s CFP® certification status and summaries of and links to orders issuing public sanctions to current or former CFP® professionals.
• Links to other sources of information about CFP® professionals that may be more recent or that may contain information that has not led to CFP Board discipline and does not appear on CFP Board’s website. This information may include customer disputes, disciplinary actions taken by a regulator or employer, certain criminal matters and certain financial matters (such as bankruptcy proceedings and unpaid judgments or liens).
• Links to the Financial Industry Regulatory Authority’s (FINRA’s) BrokerCheck and the U.S. Securities and Exchange Commission’s (SEC’s) Investment Adviser Public Disclosure databases for individuals who are subject to FINRA or SEC oversight.

The Public Sanctions on Seven Individuals

A short summary of each sanction can be found below.

PUBLIC CENSURE

OHIO

Timothy P. Woodburn, CFP® (Gahanna, OH): In September 2024, the Disciplinary and Ethics Commission (Commission) issued an order imposing a Public Censure on Mr. Woodburn for violating CFP Board’s Code and Standards. The order cites Mr. Woodburn’s April 1, 2022, agreement with the Ohio Division of Securities in which he consented to findings that, in early 2021, he submitted to an insurance company five annuity contracts containing copied and reused client signatures in violation of Ohio securities law. Mr. Woodburn later resigned in lieu of termination from his firm and consented to a 60-day suspension of his Ohio investment advisor representative license and heightened supervision. On October 18, 2022, the Financial Industry Regulatory Authority, Inc. (FINRA) issued a Cautionary Action Letter to Mr. Woodburn stating that his conduct violated FINRA Rule 2010 and caused his firm to violate FINRA Rule 4511. The Commission found that Mr. Woodburn violated Standard D.2.a. of CFP Board’s Code and Standards by failing to comply with his firm’s policies and procedures; Standard E.2.b. by engaging in conduct that reflects adversely on his integrity or fitness as a CFP^® professional, on the CFP^® marks or on the profession; and Standard A.8.a. for not complying with the laws, rules and regulations governing the professional services he provided to his clients. Read the Commission’s order: Case History 44257.

SUSPENSION

COLORADO

Joseph S. Sturniolo (Highlands Ranch, CO): In August 2024, the Disciplinary and Ethics Commission (Commission) issued an order suspending Mr. Sturniolo’s CFP Board certification and right to use the CFP Board certification marks for three months. In December 2022, the Securities Commissioner for the State of Colorado entered a Consent Licensing Order in which Mr. Sturniolo stipulated to allegations that, since 2013, his investment adviser firm had failed to annually update and deliver to clients Form ADV Part 2 and 2B as required under Colorado law. The Colorado order states that the firm did not disclose material information about the compensation it received, presenting a conflict of interest. Mr. Sturniolo consented to a letter of censure, withdrawal of his firm’s Colorado license and three years of heightened supervision. The Commission’s order cites Mr. Sturniolo’s violation of Standard A.8.a. of the Code and Standards for failing to comply with the laws, rules and regulations governing professional services provided to his clients. It requires that Mr. Sturniolo undertake 10 hours of continuing education and that he provide CFP Board ongoing communications with Colorado state securities regulators. Mr. Sturniolo’s suspension is effective September 22, 2024, through December 21, 2024. Read the Commission’s order: Case History 45148.

GEORGIA

Scott M. Bremus (Braselton, GA): In August 2024, the Disciplinary and Ethics Commission (Commission) issued an order suspending Mr. Bremus’ certification and right to use the CFP Board certification marks for a year and a day. The order cites Mr. Bremus’ October 4, 2023, Letter of Acceptance, Waiver and Consent with the Financial Industry Regulatory Authority, Inc. (FINRA), in which he consented to findings that he had participated in a private securities transaction without seeking or obtaining his firm’s authorization in violation of FINRA Rules 3280 and 2010. Mr. Bremus consented to a six-month suspension from associating with any FINRA member firm and a $10,000 fine. The Commission found that Mr. Bremus violated Standard A.8.a. of the Code and Standards for not complying with the laws, rules and regulations governing professional services; Standard D.2.a. for not complying with his firm’s policies and procedures; and Standard E.3.j. for failing to notify CFP Board in writing that he had been terminated by his firm. Mr. Bremus’ suspension is effective September 22, 2024, through September 23, 2025. Read the Commission’s order: Case History 43779.

ILLINOIS

Donald G. Heatherly (Naperville, IL): In August 2024, the Disciplinary and Ethics Commission (Commission) issued an order suspending Mr. Heatherly’s CFP Board certification and right to use the CFP Board certification marks for four months. The order describes a November 2021 promissory note that Mr. Heatherly and his business partner wrote to a client who loaned them $150,000 at 5% interest so that they could establish a new firm. The partners repaid the loan over 36 months, the order states, but Mr. Heatherly did not disclose to the client the conflicts of interest this investment presented. The Commission found that Mr. Heatherly violated Standard A.15.a. of the Code and Standards, which prohibits a CFP® professional from borrowing money from a client except under limited circumstances not present here. The order also cites Mr. Heatherly’s past disciplinary history with CFP Board, including a 2017 matter involving misrepresentations about his compensation methods and a 2020 letter cautioning him to provide accurate statements to CFP Board. Mr. Heatherly’s suspension is effective September 25, 2024, through January 24, 2025. Read the Commission’s order: Case History 44748.

TEMPORARY BAR

ARIZONA

Raymond J. DiMuro (Peoria, AZ): In August 2024, Counsel to the Disciplinary and Ethics Commission (DEC Counsel) issued an administrative order barring Mr. DiMuro from applying for CFP® certification until he has been deemed eligible under Article 4.6 of CFP Board’s Procedural Rules. On November 30, 2023, CFP Board Enforcement Counsel delivered a notice of investigation to Mr. DiMuro requesting documents and information related to his termination by a firm for allegedly trading in the firm’s block account in a way that avoided internal controls. Mr. DiMuro failed to respond to the notice of investigation despite repeated attempts by Enforcement Counsel to reach him and was, therefore, in default under Article 4.1 of the Procedural Rules. Based on determination of the seriousness, scope and harmfulness of Mr. DiMuro’s conduct, Enforcement Counsel filed a Motion for Order of Administrative Temporary Bar, which DEC Counsel granted on August 28, 2024. The order was effective September 27, 2024. Read DEC Counsel’s order: Case History 46089.

REVOCATION

MASSACHUSETTS

Filippo Mastrocola (Everett, MA): In August 2024, the Disciplinary and Ethics Commission (Commission) issued an order revoking Mr. Mastrocola’s CFP Board certification and right to use the CFP Board certification marks. In May 2022, Mr. Mastrocola entered into a Consent Order with the Massachusetts Securities Division, in which he consented to findings that he misrepresented to a client that he would purchase a Medicaid-compliant annuity on a client’s behalf using proceeds from the client’s sale of securities in his IRA. Mr. Mastrocola never purchased the annuity, the Consent Order states, but instead wired most of the $228,000 in proceeds to an account held for the benefit of a third party, and transferred remaining funds to the client’s checking account, failing to disclose that the transfers were not annuity payments. Mr. Mastrocola consented to paying a $175,000 administrative fine and $102,000 in restitution, and was permanently barred from associating with or acting as a broker-dealer or investment advisor in Massachusetts. The Commission found that Mr. Mastrocola violated Standards A.2.b. and A.11 of the Code and Standards and Rule 2.1 of the Rules of Conduct for making material misstatements or omissions in providing professional services to his client, and Standard A.8.a. of CFP Board’s Code and Standards and Rule 4.3 of its Rules of Conduct for failing to comply with the laws, rules and regulations governing those professional services. The order also cites Mr. Mastrocola’s failure to notify CFP Board of the Consent Order within 30 days of entering it, as required by Standard E.3. Read the Commission’s order: Case History 45868.

PERMANENT BAR

ARKANSAS

Alton B. Raney II (Little Rock, AR): In September 2024, counsel to the Disciplinary and Ethics Commission (DEC Counsel) issued an administrative order permanently barring Mr. Raney from applying for or obtaining CFP^® certification. In December 2023, CFP Board Enforcement Counsel sent a notice of investigation to Mr. Raney concerning an investigation of him by the Arkansas Securities Department. Mr. Raney failed to acknowledge receipt of this notice and the second notice Enforcement Counsel delivered to him and was, therefore, in default under Article 4.1 of CFP Board’s Procedural Rules. Based on a determination of the seriousness, scope and harmfulness of Mr. Raney’s conduct, Enforcement Counsel filed a Motion for Administrative Order of Permanent Bar, which DEC Counsel granted on September 13, 2024. The order was effective October 13, 2024. Read DEC Counsel’s order: Case History 46147.

ABOUT CFP BOARD

CFP Board is the professional body for personal financial planners in the U.S. CFP Board consists of two affiliated organizations focused on advancing the financial planning profession for the public’s benefit. CFP Board of Standards sets and upholds standards for financial planning and administers the prestigious CERTIFIED FINANCIAL PLANNER® certification — widely recognized by the public, advisors and firms as the standard for financial planners — so that the public has access to the benefits of competent and ethical financial planning. CFP® certification is held by more than 100,000 people in the U.S. CFP Board Center for Financial Planning addresses diversity and workforce development challenges and conducts and publishes research that adds to the financial planning profession’s body of knowledge.

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