• February 23, 2019
• Foresters Equity Services

Michael Rappa is a former Financial Advisor at Foresters Equity Services in San Diego, CA.  Michael Rappa has been in the securities industry since 2004 and previously worked at Princor Financial Services Corp. 

The Wolper Law Firm, P.A. previously reported disclosures made by Michael Rappa, including a pending $700,000 complaint for allegedly unsuitable investments.  Since that time, Michael Rappa has been barred from the securities industry. 

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on February 15, 2019, FINRA sanctioned Michal Rappa, barring him from the securities industry for the following:

“Without admitting or denying the findings, Rappa consented to the sanction and to the entry of findings that he engaged in undisclosed and unapproved private securities transactions. The findings stated that Rappa solicited investors to purchase promissory notes relating to a purported real estate investment fund. Rappa sold $2,731,287 in in the fund’s notes to investors, some of whom were customers of his member firm, and received a total of $109,939 in commissions in connection with these transactions. Later the fund filed a voluntary Chapter 11 bankruptcy petition.”

For a full copy of the sanction, click https://www.finra.org/sites/default/files/fda_documents/2018057766401%20Michael%20J.%20Rappa%20CRD%204799159%20AWC%20va%20.pdf

In addition, Michael Rappa has a second customer complaint reported against him, where the clients “allege that he made unsuitable private securities transaction recommendations. The alleged activity dates all occurred in 2016.”  Alleged damages are $75,000 and the matter remains pending.  

For a copy of the Michael Rappa’s CRD, click https://brokercheck.finra.org/individual/summary/4799159#disclosuresSection

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients.  To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.  

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., 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 mwolper@wolperlawfirm.com.