Former Summit Equities, Inc. Broker Thomas Stappas Barred by FINRA for Selling Away
Posted on Tuesday, November 19th, 2019 at 2:42 pm
Former Summit Equities, Inc. broker Thomas Stappas (CRD# 855198) was barred by FINRA for selling away. Stappas was registered with Summit Equities, Inc. in Parsippany, New Jersey from 1993 to 2018, when he was terminated regarding, “Engaging in an outside business activity and private securities transaction without disclosing to the firm in violation of FINRA rules and firm procedures.”
In September 2019, Stappas was barred by FINRA after he consented to the sanction and to the entry of findings that he failed to provide documents and information requested by FINRA in connection with its investigation into allegations that he engaged in outside business activities, and recommended private securities transactions to his member firm customers, neither activity was disclosed to his firm.
Selling away is when a broker recommends a client to purchase securities that are not held or offered by the brokerage firm, which in this case was Summit Equities, Inc. Summit Equities, Inc. would generally have a list of approved products that can be offered by their brokers to clients of Summit Equities, Inc. These approved products have usually undergone due diligence screenings by Summit Equities, Inc. and have been identified by the Summit Equities, Inc.’s screening personnel as solid products. When a broker sells away from Summit Equities, Inc. or other firm’s list of approved products, the brokers run the risk of selling something for which due diligence has not been completed.
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, Summit Equities, Inc. may be liable for investment or other losses suffered by Stappas’ customers.
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