Situation
When Tom, a well respected Certified Financial Planner and licensed attorney, accepted an invitation to serve on the Board of Directors of a tech company start-up, he did not disclose the position to his employer. A client learned that Tom sat on the Board of a rival company; the client terminated his relationship with Tom’s employer and moved his sizable accounts to another firm.
As a result of Tom’s position on the Board of another company, his employer terminated him. The employer alleged that Tom violated the company’s conflict of interest policy when he failed to disclose his Board position and compensation. An SEC investigation followed.
