Erez Law Investigates Former Foresters Equity Services, Inc. Financial Advisor Michael Rappa
Posted on Saturday, March 30th, 2019 at 10:45 am
Did you lose money investing with former Foresters Equity Services, Inc. financial advisor Michael Rappa (CRD# 4799159)? Rappa was registered with Foresters Equity Services, Inc. in San Diego, California from 2010 to 2017.
In February 2019, FINRA barred Rappa after he consented to the sanction and to the entry of findings that he engaged in undisclosed and unapproved private securities transactions. The FINRA findings stated that Rappa solicited investors to purchase promissory notes relating to a purported real estate investment fund. Rappa sold $2,731,287 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.
Rappa has been the subject of two customer complaints in 2018, according to his CRD report:
May 2018. “With respect to Mr. Rappa, the Dooley’s allege that he made unsuitable private securities transaction recommendations. The alleged activity dates all occurred in 2016.” The customer is seeking $75,000 in damages and the case is currently pending. This case is regarding real estate securities.
February 2018. “With respect to Mr. Rappa, the claimants allege that he made unsuitable private securities transaction recommendations. The alleged activity dates all occurred in 2017.” The customer is seeking $700,000 in damages and the case is currently pending. This case is regarding real estate securities.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Foresters Equity Services, Inc. may be liable for investment or other losses suffered by Rappa’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.