Certified College Planner May Not Have Sat For Exam

For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority (“FINRA”), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, Jack R. Kapinus submitted a Letter of Acceptance, Waiver and Consent (“AWC”), which FINRA accepted. In the Matter of Jack R. Kapinus, Respondent (AWC 2010024376001, February 27, 2013).

Kapinus entered the securities industry in 1984, and between May 2003 and July 2010, he was registered as a General Securities Principal with FINRA member firm MML Investors Services, a subsidiary of MassMutual Financial Group. The AWC asserts that Kapinus had no prior relevant disciplinary history.

The AWC alleges that around September 2008, Kapinus, along with two registered representatives who worked at a branch office ran by Kapinus, decided to complete online examinations to become Certified College Planning Specialists (“CCPS”), a certification provided by the National Institute of Certified College Planners (“NICCP”).

SIDE BAR:  According to NICCP’s website as of March 6, 2013 (and which could use a bit more proofreading):

The AWC alleges that the two registered persons passed their CCPS examinations but  that one or both of them took and passed the same examinations for Kapinus.  Although all three cited individuals obtained CCPS certification, the AWC alleges that, in fact, Kapinus never actually sat for the exams.

For unexplained reasons in the AWC, sometime around May 9, 2010, MassMutual representatives arrived at Kapinus’ branch office to investigate, among other things, whether he had actually taken the CCPS exam.  In furtherance of that investigation, Kapinus met with and directed the two registered persons cited above to provide the MassMutual investigators with written statements that Kapinus had, in fact, taken and passed the CCPS examination, which occurred. Shortly thereafter near May 21^st, Kapinus provided the MassMutual investigators with a written statement that falsely reported that he had taken the CCPS examination.

SIDE BAR: Online FINRA records disclose as of March 6, 2013, that Kapinus had been discharged by MML Investors Services, Inc. on June 27, 2010, based upon this:

Based on the foregoing, FINRA alleged that Kapinus violated FINRA Rule 2010. In accordance with the terms of the AWC, FINRA imposed upon Kapinus a

What remains unclear to me is what first tipped off MassMutual to Kapinus’s alleged duplicity — notwithstanding the mystery, compliments to MassMutual for policing its associates.  As to how things jumped from MassMutual to FINRA is also an unanswered question. More importantly, notwithstanding that Kapinus agreed to the AWC, we truly don’t know whether someone blew the whistle on this respondent or what, if any, smoking gun was found.

While it is clear that the AWC has alleged that one or two other individuals may have taken the certifying examination for Kapinus, we are not told that either of those folks admitted as much.  Call it mere curiosity but I would still like a tad more background to understand what proof was relied upon in alleging the underlying misconduct.  This a case that alleges A, charges C, but leaves out the interim step of B.

As part of my tireless effort on behalf of “Street Sweeper” readers to ferret out a story, I visited the NICCP website and found this description on the organization’s webpage titled: The Certified College Planning Specialist (CCPS) Certification Program (and once again, a tad more proofreading would be advised):

Frankly, a commendable financial specialty to be in a position to help young families prepare for the challenge of putting aside adequate college funds; and, hopefully, the CCPS program is a tad more efficient (rather than “effecient”) in accomplishing those goals than the disconcerting typos on the NICCP website might suggest. Of course, the one thing that truly perplexed me is that such a useful certification has been reduced to a seeming quest to earn a “wood framed and matted CCPS Certification suitable for hanging in the nicest of offices” which serves as some odd “confidence booster.”  I mean, really?

As “Street Sweeper” has often demonstrated, exam cheating is not a particularly isolated fact pattern on Wall Street. If you can think of a variation on the theme of cheating, chances are, someone has already done it. Word to the wise: STUDY!

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