Former First Financial Equity Corp. Broker David Volpe Barred By FINRA For Allegedly Engaging In Private Securities Transactions With Customers
David Volpe (CRD#: 2543478) is a previously registered Broker, currently barred by FINRA. He entered the securities industry in 1996 and previously worked for First Financial Equity Corporation; LPL Financial, LLC; National Planning Corporation; AIG Financial Advisors, Inc.; and SunAmerica Securities, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August 2020, a customer dispute was filed against David Volpe. The allegation states, “Claimant alleges that between 2015 and April 2019, representative converted her funds by liquidating her accounts for his own personal use and by requesting claimant to write personal checks to him.” The dispute is pending.
In addition, David Volpe has been the subject of four disclosures, including the following:
- August 2019—”Without admitting or denying the findings, Volpe consented to the sanction and to the entry of findings that he refused to produce information and documents requested by FINRA in connection with an investigation into whether he engaged in a private securities transaction or borrowed funds from a customer.” FINRA barred David Volpe from all capacities indefinitely, beginning on August 2, 2019. For a copy of the FINRA sanction, click here.
- April 2019–“Failure to notify firm of private securities transaction involvement and violation of firm policy regarding borrowing funds from a client.” David Volpe was discharged from First Financial Equity Corporation.
- December 2018–“Violation of the Firm’s private securities transactions policy for involvement in capital-raising efforts without prior disclosure.” David Volpe was discharged from LPL Financial, LLC.
- February 1994–Two counts of drug possession to which David Volpe pleaded not guilty were dismissed without prejudice.
For a copy of David Volpe’s FINRA BrokerCheck, click here.
The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.
The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at email@example.com.