Effective Date: 8/10/2009
Kevin K. Kroskey (North Royalton): In July 2009, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board issued Mr. Kroskey a Public Letter of Admonition. This discipline followed an investigation of two related matters: 1) Mr. Kroskey was convicted of a felony in a federal court for Conspiracy to Possess with Intent to Distribute Methylenedioxymethamphetamine (“MDMA”), also commonly known as Ecstasy; and 2) Mr. Kroskey failed to report his conviction to the Ohio Department of Insurance within thirty days from the date of conviction. In the first matter, Mr. Kroskey served 13 months in prison after being sentenced to 51 months imprisonment followed by three years of supervised probation. Mr. Kroskey was discharged from probation after serving one year for his completion of ordered conditions and outstanding compliance. In the second matter, on October 15, 2007, the Ohio Department of Insurance issued Mr. Kroskey a Notice of the Department’s intent to suspend, revoke, or refuse to renew his license as an insurance agent. The grounds for the action were Mr. Kroskey’s felony conviction and his failure to report the felony conviction within thirty days to the superintendent of insurance. On January 9, 2008, a Hearing was held by the Ohio Department of Insurance. On January 29, 2008, the Hearing Administrator issued a Report and Recommendation, which found that Mr. Kroskey had been rehabilitated and will continue to be licensed as an insurance agent in the State of Ohio. The Report also found Mr. Kroskey in violation of Ohio law for not reporting his felony conviction within thirty days of the disposition, and recommended a civil penalty of $500.00 and administrative costs of $250.00, which was paid. The Commission determined that Mr. Kroskey’s conduct violated Rule 606(a) of CFP Board’s Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Articles 3(a) and 3(c) of CFP Board’s Disciplinary Rules and Procedures. In mitigation, the Commission considered the following factors: 1) Mr. Kroskey’s violation of Ohio law for Mr. Kroskey’s late reporting of his felony conviction was due to his incarceration; 2) the conduct at issue took place when Mr. Kroskey was a college student, long before he began his financial services career, and Mr. Kroskey’s past behavior does not reflect his current level of commitment to his profession and his community; and 3) Mr. Kroskey’s current professional life reflected a commitment to the profession, despite the career-long disadvantage he will experience due to his poor behavior in the past. The Commission cited no aggravating factors. Accordingly, the Commission admonished Mr. Kroskey with regard to the above-mentioned conduct. The Order to issue Mr. Kroskey a Public Letter of Admonition became effective on August 10, 2009.