CFP Board Sanctions 9, Revokes Planners in Fraud and Ponzi Schemes

WASHINGTON, D.C. – January 30, 2026 – The Certified Financial Planner Board of Standards, Inc. has taken decisive action against nine individuals for violating its ethical code, issuing a range of sanctions from public censure to permanent revocation of the right to use the esteemed CFP® marks. The disciplinary actions, announced recently, underscore the organization's role as a critical guardian of public trust in a financial industry where integrity is paramount.

The sanctions address a wide array of misconduct, including involvement in a multi-million dollar Ponzi scheme, advising clients into fraudulent commodity pools, failing to disclose significant tax liens, and personal conduct violations. These enforcement actions highlight the CFP Board's commitment to holding its more than 107,000 professionals to a stringent Code of Ethics and Standards of Conduct designed to protect consumers and uphold the value of the financial planning profession.

From Ponzi Schemes to Tax Liens: A Spectrum of Misconduct

The severity of the violations varied, but the most serious cases resulted in the permanent loss of the CFP® certification. These actions serve as a stark reminder of the consequences of betraying client trust and professional obligations.

Paul C. Ohanian of Scottsdale, Arizona, had his certification revoked after the CFP Board reviewed a consent agreement he entered with the Commodity Futures Trading Commission (CFTC). Mr. Ohanian was found to have advised clients to invest in a commodity pool while failing to disclose material facts, including excessive fees and a reckless, undisclosed trading strategy that led to investors losing over 90% of their money. The CFTC ordered him to pay over half a million dollars in restitution and penalties.

In another significant case, Sanford A. Schmidt of Northbrook, Illinois, also faced revocation of his CFP® certification. The action stemmed from his failure to cooperate with a CFP Board investigation into allegations of fraud. A civil lawsuit alleged Mr. Schmidt recommended clients invest in notes issued by a company that was later exposed as a Ponzi scheme, causing investors, including his clients, to collectively lose approximately $75 million. His refusal to participate in the board's disciplinary process led to the administrative order.

Further demonstrating the board's zero-tolerance policy for non-cooperation, Jason M. Kurtz of Edmond, Oklahoma, was permanently barred from ever obtaining CFP® certification. Mr. Kurtz failed to provide the board with information related to his noncompliance with a prior arbitration award and a bar imposed on him by the Financial Industry Regulatory Authority, Inc. (FINRA).

The sanctions also included lesser, though still significant, penalties. Robert Henderson Jr. of Hialeah, Florida, received a three-year suspension for failing to disclose outside business activities and roughly $368,000 in federal tax liens, building on a history of prior cautions and customer complaints. Scott A. Pelfrey of Loveland, Ohio, was suspended for a year and a day for his inability to responsibly manage his personal finances, evidenced by a decade of unresolved federal tax liens.

Two individuals, Michael Paul Massey of Vero Beach, Florida, and David H. Knight of Traverse City, Michigan, received public censures for personal conduct issues involving criminal pleas that the board determined reflected adversely on their fitness as professionals, even though the charges were later dismissed.

Strengthening the Standard: A Pattern of Rigorous Enforcement

These latest sanctions are not an isolated event but part of a consistent and ongoing effort by the CFP Board to police its ranks. This pattern of rigorous enforcement is foundational to maintaining the credibility of the CFP® mark. The board regularly announces such disciplinary actions, having sanctioned 11 individuals in November 2025 and 10 in August 2024 for a variety of offenses, including a case of felony negligent manslaughter.

This sustained enforcement follows a significant overhaul of the CFP Board’s sanctions and certification rules that took effect on July 1, 2024. These revised guidelines were designed to bolster accountability and strengthen ethical conduct by providing a more comprehensive framework for evaluating misconduct. The updates included an expanded list of aggravating and mitigating factors for the Disciplinary and Ethics Commission to consider and a clearer description of conduct that would lead to a permanent bar from certification. This proactive enhancement of its own rules demonstrates a commitment to evolving with the industry and addressing ethical challenges head-on.

Empowering Investors: How to Vet Your Financial Professional

While the CFP Board’s enforcement actions provide a crucial layer of protection, they also highlight the importance of consumer diligence. The organization strongly encourages the public to vet any financial professional before entering into a relationship. To this end, it provides several free and accessible tools.

Investors can visit CFP.net/verify to instantly check if an individual is currently a CERTIFIED FINANCIAL PLANNER™ professional and to see if they have any public disciplinary history with the board. The CFP.net/enforcement section provides more detailed information on recent disciplinary actions.

For a more comprehensive background check, the CFP Board advises consumers to consult other regulatory databases. These resources, which operate independently, offer a wider view of a planner's professional history:

• FINRA BrokerCheck: This tool is essential for researching the background and experience of financial brokers, advisers, and firms. It discloses employment history, certifications, and any customer disputes, regulatory actions, or disciplinary events.
• SEC Investment Adviser Public Disclosure (IAPD): This database provides information about investment advisers regulated by the Securities and Exchange Commission or state securities authorities. It contains the adviser's registration forms, which detail their business practices, disciplinary history, and professional background.

Using these resources in combination allows consumers to build a more complete picture of a potential advisor's history and qualifications, empowering them to make informed decisions and safeguard their financial future.

A Layered System of Oversight

Understanding the CFP Board's role within the broader regulatory landscape is key to appreciating its impact. The CFP Board is a professional standards body, not a government agency. Its authority lies in its ability to bestow or revoke the right to use the CFP® certification marks. It cannot file criminal charges, sentence individuals to prison, or directly order restitution to victims in the way a court or government regulator can.

However, its function is complementary to and often intertwined with the actions of legal and regulatory bodies like the SEC, FINRA, and the CFTC. As seen in the cases of Mr. Ohanian and Mr. Kurtz, disciplinary action from a regulator frequently triggers a parallel investigation by the CFP Board. This creates a layered system of oversight that enhances investor protection.

While FINRA and the SEC focus on violations of securities laws and regulations, the CFP Board's mandate is to enforce its own ethical code, which can sometimes be stricter or cover different areas of professional conduct. This multi-pronged approach helps ensure that financial professionals are held accountable not only to the letter of the law but also to the higher ethical standards that clients rightly expect when entrusting someone with their financial well-being.