The Certified Financial Planner Board of Standards has imposed an interim suspension of the CFP® certification against a Massachusetts financial advisor over ethical violations involving his dealings with a client.
The CFP Board announced that the suspension of Filippo Mastrocola of Everett took effect as of August 10. The action came after Mastrocola was permanently barred by the Massachusetts Securities Division earlier this year.
Mastrocola entered into a Consent Order with state regulators in May. According to the order, Mastrocola advised a client whose wife had a serious health condition to liquidate stocks in his IRA and send $228,000 in proceeds to the adviser.
Investigators said Mastrocola claimed he would use the proceeds to buy a Medicaid-compliant annuity for the client so his wife could qualify for a state Medicaid program. But Mastrocola never bought the annuity and used most of the money for purposes unrelated to the client, the order stated.
Mastrocola was found to have violated Section 101(2) of the Massachusetts Uniform Securities Act, prohibiting the making of material misrepresentations or omissions in connection with the offer, sale or purchase of a security.
Mastrocola agreed to pay $102,000 in restitution and a $175,000 administrative fine while also consenting to the permanent bar. His right to use CFP certification marks is now suspended pending the CFP Board’s full investigation into the matter and possible further disciplinary proceedings.
CFP professionals make a commitment to abide by the CFP Board’s Code of Ethics and Standards of Conduct. The board enforces the standards by investigating alleged violations and when it finds probable cause for sanction, it presents a complaint to the Disciplinary and Ethics Commission for review and possible sanction.
The attorneys at Hyman Cotter PC represent advisors, brokers and other financial professionals in all matters involving the CFP Board, including CFP Board investigations. Headquartered in Chicago, our securities attorneys represent clients nationwide. For more information related to CFP Board investigations and discipline or other matters, contact Hyman Cotter PC at 312-291-4600 or through our online contact form for a free consultation.
