CFP Board issues interim suspension of Texas planner accused of diverting nearly $2M of client money

The Certified Financial Planner Board of Standards has imposed an automatic interim suspension of Lawrence A. DeShetler's CFP certification after the Houston, Tex., planner and registered investment adviser failed to respond to a show-cause order. The board filed the order in June, after learning that Mr. DeShetler had pleaded guilty to federal mail fraud violations for fraudulently obtaining $1.9 million from five clients and diverting the money to his own accounts. Under federal statutes, he faces up to 20 years in federal prison at sentencing. The State of Texas also had been investigating Mr. DeShetler and in June alleged that he had deposited client money from an individual retirement account into an account over which he had sole authority, and used a portion of the money for his personal expenses. The CFP Board said that it follows a number of procedural steps following an interim suspension that may lead to a permanent suspension and revocation of the CFP certification.