• March 22, 2024
• Securities America

Michael Patrick Raineri (CRD#: 4817558) was a previously registered broker and investment advisor.

 

Broker’s Background

He entered the securities industry in 2006 and he previously worked with Pacific West Securities, Inc.; Cetera Advisors, LLC; KMS Financial Services, Inc.; and Securities America, Inc.

 

Allegations of Misconduct

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in April 2023, without admitting or denying the findings, Raineri consented to the sanction and to the entry of findings that he converted customer funds. The findings stated that, as early as August 2018, at the request of one of his customers, Raineri began paying some personal expenses for the customer. Over time, Raineri caused the customer to pay him at least $135,000, ostensibly to reimburse Raineri for the payments he had made. The payments to Raineri, however, far exceeded the customer’s expenses Raineri had paid, and Raineri was not entitled to the extra funds. By virtue of the foregoing, Raineri converted customer funds, violating FINRA Rules 2150(a) and 2010. Respondent also consents to the imposition of the following sanctions:

• A bar from associating with any FINRA member in all capacities.

 

For a copy of Michael Raineri’s Letter of Acceptance, Waiver and Consent, click here.

 

In addition, Michael Raineri has been the subject of two other disclosures, which include the following:

• April 2023—“The Financial Professional failed to follow firm policies, including being named as POA for customers’ bank accounts and engaging in financial transactions with a customer for payment processing for personal services customer received from third parties without prior request or approval by the Firm.” Discharged by Securities America, Inc.
• Jan 2023—“Customer alleges financial professional transferred approximately $135,000.00 from customer’s bank account to himself without customer’s consent.” The damage amount requested is $135,000 and the customer dispute is still pending.

 

For a copy of Michael Raineri’s FINRA BrokerCheck, click here.

 

 

We Help Investors Recover Investment Losses

FINRA Rule 2150 specifically addresses theft and conversion in a customer account, stating “no member or person associated with a member shall make improper use of a customer’s securities or funds.”  This rule includes any “guarantee” that brokers make to customers in relation to losses incurred in a brokerage account.

 

In addition, FINRA Rule 3240 strictly prohibits a financial advisor from borrowing money from a client absent from unique circumstances, such as a familial relationship between the Financial Advisor and the client.  There is also an exception if the client is a financial institution regularly engaged in the business of lending.  The reason for this prohibition is clear—borrowing money from clients creates an immediate conflict of interest and can potentially lead to theft or conversion of client assets.

 

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 mwolper@wolperlawfirm.com.