Certified Financial Planner Board suspends California adviser for defrauding pro-athletes

The Certified Financial Planner Board of Standards has temporarily suspended Ash Narayan, an investment adviser in Irvine, Calif., for allegedly siphoning millions of dollars from pro athletes. The CFP Board said Monday it made the decision after Mr. Narayan was named in a Securities and Exchange Commission complaint alleging he misappropriated client funds and misrepresented his professional qualifications. The interim suspension took effect Oct. 25. The SEC announced in June that it charged Mr. Narayan with siphoning money from accounts he managed for professional athletes, investing them in a struggling online sports and entertainment ticket business called Ticket Reserve. He transferred more than $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, Mr. 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. Mr. Narayan could not be reached immediately for comment.