The Certified Financial Planner Board of Standards has temporarily suspended Ash Narayan, an investment adviser in Irvine, California, for allegedly bilking professional athletes out of millions of dollars. The CFP Board says it reached its decision after Narayan was named in a SEC complaint alleging he misappropriated client funds and misrepresented his professional qualifications. The interim suspension took effect October 25.
In June, the SEC announced charges against Narayan for taking money from accounts he managed for professional athletes, investing them in a struggling online sports and entertainment ticket business called Ticket Reserve. He transferred over $33 million to the company, failing to disclose he was a member of its board, owned its stock and received $2 million in finder’s fees for the investments, according to the SEC’s complaint.
“These investments were unsuitable, contrary to the clients’ stated and agreed objectives and sometimes without the clients’ knowledge and consent,” the CFP Board said. “Mr. Narayan also misrepresented to clients that he was a Certified Public Accountant, when he was not.”
In appearing before the CFP Board’s disciplinary and ethics commission, Ash Narayan failed to prove that he did not pose an immediate threat to the public or that his conduct did not significantly hurt the reputation of the CFP marks, according to the statement.
His right to use the CFP certification is suspended until it has completed its investigation and possible further disciplinary proceedings.
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