Selling Away

Michael Rappa Barred from the Securities Industry Over Private Securities Transactions

September 23, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Michael Rappa (Rappa) engaged in undisclosed and unapproved private securities transactions. According to records kept by The Financial Industry Regulatory Authority (FINRA), Rappa, formerly registered with Foresters Equity Services, Inc. (Foresters Equity) out of San Diego, California was barred from the financial industry and disclosed at least two customer complaints. According to a BrokerCheck report, Rappa’s customer complaints allege that Rappa made unsuitable private securities transaction recommendations.

In February 2019, FINRA stated that Rappa consented to the sanction and to the entry of findings that from August 2016 to July 2017, he engaged in undisclosed and unapproved private securities transactions totaling $2,731,287. The findings stated that Rappa solicited investors to purchase promissory notes relating to a purported real estate investment fund.

In May 2018, a customer alleged that in 2016, Rappa made unsuitable private securities transaction recommendations. The customer has requested $75,000 in damages. This dispute is currently still pending.

In February 2018, another customer similarly alleged that in 2017, Rappa was recommending unsuitable private securities transactions. The customer has requested $700,000 in damages. This dispute is currently still pending.

Advisor James Anderson Terminated Over Promissory Note Sales

May 19, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor James Anderson (Anderson), formerly associated with Ameritas Investment Corp. (Ameritas), and operating under the d/b/a name Central Financial Group was terminated by Ameritas in February 2019. Anderson was accused by Ameritas, upon conclusion of internal investigation, that he was found to have engaged in the sales of Indexed Annuities and Promissory Notes away from the firm.

In addition, in 2013 FINRA had found that during the exam period, Anderson was found to have sold Indexed Annuities that were not listed on the firm’s approved list. The transactions equaled to an undisclosed outside business activity, to which prompt/prior notice was not given to the firm.

The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”. At this point is unclear what securities or business activities Anderson was engaged in. His public disclosures state only that he operated out of his d/b/a firm Central Financial Group.

Advisor Daniel Levine Barred Over Claims of Misconduct

February 26, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Daniel Levine (Levine), formerly associated with First Financial Equity Corporation (First Financial), in January 2019, was sanctioned and barred from the securities industry by FINRA over accusations of potentially selling unapproved products.

In January 2019 FINRA alleged that Levine consented to the sanctions and findings that he failed to provide FINRA with requested documents and information for the regulator’s investigation into allegations that he engaged in undisclosed outside business activities, solicited a senior firm customer to borrow funds for an outside business activity, and executed unauthorized trades.

In August 2018 Levine was discharged from First Financial due to FINRA’s inquiry into his activities. In July 2018, Levine was terminated from Morgan Stanley due to allegations concerning unapproved outside activity.

The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

Advisor Robert Jamison Sanctioned Over Unapproved Securities Sales

January 23, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Robert Jamison (Jamison), formerly associated with PNC Investments, in December 2018, was sanctioned and barred from the securities industry by FINRA over accusations of potentially selling unapproved products.

In December 2018 FINRA alleged that Jamison consented to the sanction and to the entry of findings that he refused to provide testimony to FINRA related to allegations that he, in connection with private securities transactions, referred customers to an individual who was not registered and who may have recommended or sold unsuitable securities to those customers.

The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

At this time it is unclear the nature and scope of Jamison’s activities. Jamison’s disclosures include any outside business activities (OBAs) disclosures. The only disclosure is an involvement with Crump Life Insurance.

Advisor Nicholas Radke Barred by Regulator Over Unapproved Products

January 14, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Nicholas Radke (Radke), formerly associated with MML Investors Services, LLC (MML Investors) in December 2018, was sanctioned and barred from the securities industry by FINRA over accusations of potentially selling unapproved products.

In December 2018 FINRA alleged that Radke consented to the sanction and a bar from the industry because he failed to provide FINRA with requested documents and information in connection with allegations that Radke participated in a private securities transaction without prior approval from his member firm.

The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

At this time it is unclear the nature and scope of Radke’s activities. Radke’s disclosures include outside business activities (OBAs). At this time it is unclear whether the unapproved products involve any of these entities.

Advisor Noel Carino Barred by Regulator Over Unapproved Products

January 12, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Noel Carino (Carino), formerly associated with General Securities Corp., in November 2018, was sanctioned and barred from the securities industry by FINRA over accusations of potentially selling unapproved products.

In November 2018 FINRA alleged that Carino consented to the sanction and bar from the industry after he refused to provide documents and information requested by FINRA in connection with its investigation into whether he engaged in outside business activities without written notice to his member firm, whether he engaged in private securities transactions without written notice to or approval from the firm, and whether he reported all outside brokerage accounts in which he had an interest to the firm.

The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

At this time it is unclear the nature and scope of Carino’s activities. Carino’s disclosures include outside business activities (OBAs) including B & N Investments, LLC and Fidelity Wealth Management LLC. At this time it is unclear whether the unapproved products involve any of these entities.

Former Cetera Advisors Broker Scott Kozak Accused of Selling Unapproved Securities

December 24, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Scott Kozak (Kozak), formerly associated with Cetera Advisors LLC (Cetera) in Highlands Ranch, Colorado has been accused by his former firm and barred by FINRA over unapproved securities. In addition, Kozak has four customer complaints on his record.

In May 2018 FINRA filed a notice of investigation stating that FINRA has made a preliminary determination to recommend disciplinary action be brought against Kozak for potential violations of engaging in private securities transactions and outside business activities for the period July 2011 to March 2017, without prior notice to or approval from his member firm, Cetera Advisors.

Thereafter, in July 2018 Cetera terminated Kozak stating that he violated policies concerning personal securities transactions.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions. Kozak’s public disclosures list several OBAs including Kozak & Associates – his securities d/b/a, K&A Charities – a charitable arm of Kozak & Associates, IGC, LLC – a manufacturing company that he owns, and Dominican Home Health agency – where Kozak serves as a board member. It is unknown if FINRA’s claims relate to any of these entities.

Former Morgan Stanley Advisor John Buck Accused of Selling Unapproved Securities

December 20, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor John Buck (Buck), formerly associated with Morgan Stanley in Boston, Massachusetts has been accused by his former firm and barred by FINRA over unapproved securities.

In January 2018 Morgan Stanley terminated Buck stating that there were allegations about the timing and completeness of disclosures to the firm regarding involvement in private investments outside of the firm.

Thereafter, in October 2018 Buck was terminated by FINRA and consented to the sanction that he failed to provide FINRA with requested documents and information in connection with its investigation concerning his potential involvement in certain unapproved private securities transactions.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions. Buck’s public disclosures only state that he is an investor in Gemini Partners – a venture fund.

Advisor Judith Bufis Accused of Engaging in Unapproved Securities

December 19, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Judith Bufis (Bufis), formerly associated with Kovack Securities Inc. (Kovack Securities) in East Brunswick, New Jersey has been accused by FINRA over private securities transactions.

In October 2018 Bufis consented to the sanction and to the entry of findings that she failed to provide documents and information requested by FINRA in connection with potential private securities transactions. In so doing she accepted a bar from the securities industry.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions. Bufis public disclosures state that she engaged in the sale of insurance and annuities but discloses not other activities.

Advisor Karl Foust Accused of Selling Unsuitable Wimbledon Health Partners

December 6, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Karl Foust (Foust), formerly associated with H.D. Vest Investment Services (HD Vest) in Boca Raton, Florida has been accused by at least seven clients of selling unsuitable investments in Wimbledon Health Partners leading to substantial investor losses..

In July 2018 a customer filed a complaint alleging that Foust recommended Wimbledon Health Partners LLC that was not suitable and were misrepresented to her. The customer alleged $100,000 in damages. The claim is currently pending.

In March 2018 another customer filed a complaint alleging that Wimbledon Health Partners LLC, were not suitable and were misrepresented to him. The customer alleged $95,000 in damages. The claim is currently pending.