- September 7, 2020
- LPL Financial
James Rapisarda (CRD # 1851883) was a Financial Advisor at LPL Financial LLC in Scottsdale, AZ. James Rapisarda was in the securities industry from 1988 to 2018 and previously worked at eight different brokerage firms, including National Planning Corp. and AIG Financial Advisors.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on August 28, 2020, James Rapisarda was sanctioned by FINRA, suspending him for a period of fifteen days and imposing a fine of $5,000. According to the FINRA sanction:
“Without admitting or denying the findings, Rapisarda consented to the sanctions and to the entry of findings that he participated in private securities transactions involving a company in which he was a minority shareholder without prior written notice to his member firm. The findings stated that Rapisarda recommended that four individuals, including one firm customer, invest in the company. Three of those individuals subsequently paid a total of more than $10,000 to purchase shares in the company. In addition, Rapisarda assisted each of the individuals with executing their purchases of the company’s shares. Rapisarda did not receive any selling compensation associated with any of these transactions. Rapisarda’s participation in those securities transactions was outside the regular course and scope of his employment with the firm.”
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2019061034501%20James%20Michael%20Rapisarda%20CRD%201851883%20AWC%20sl.pdf
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.
In addition, James Rapisarda had an employment separation November 2018 after allegations. According to FINRA James Rapisarda was discharged following alleged “violation of the Firm’s private securities transactions policy for engaging in capital-raising efforts without prior disclosure, or obtaining approval from the Firm.”
For a copy of Jame Rapisarda’s CRD, click https://brokercheck.finra.org/individual/summary/1851883#disclosuresSection
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