The Certified Financial Planner Board of Standards Inc on Friday placed Oren Eugene Sullivan Jr. under interim suspension, keeping the ex-broker from using its credentials.
The Certified Financial Planner Board of Standards Inc on Friday placed Oren Eugene Sullivan Jr. under interim suspension, keeping the ex-broker from using its credentials.
Mr. Sullivan's suspension from using the CFP mark is the final chapter in what has been a lengthy and checkered past. Last month, he pleaded guilty in federal court to fraud charges relating to a Ponzi scheme he allegedly ran from 1995 to 2008.
South Carolina revoked Mr. Sullivan's insurance license last May, and Finra barred him from the securities industry in August. Still, until Feb. 19th he had a clean disciplinary record on the CFP Board's website—which made him the topic of a Feb. 14 InvestmentNews story “Groups grapple with tracking wrongdoers.”
The interim suspension order keeps Mr. Sullivan from using the CFP label pending the completion of the organization's investigation.
The CFP Board said it began its interim suspension proceedings after finding out that Mr. Sullivan had been barred form the securities industry and was facing fraud charges.
Formerly affiliated with NYLIFE Securities LLC, Mr. Sullivan allegedly misappropriated $3.7 million from 35 clients by leading them to believe that they were investing in promissory notes, according to Finra. Instead, he deposited the money into his bank account and used it for his own purposes. Mr. Sullivan paid back about $1.5 million before the plan unraveled. New York Life reimbursed the remaining $2.2 million to the clients.
Mr. Sullivan is out on $100,000 bond, but he is awaiting his April 7 sentencing date. He faces a maximum fine of $250,000 and 20 years in prison.
