FINRA Sanctions LPL Stockbroker For Selling Away
James Michael Rapisarda of Scottsdale Arizona a stockbroker formerly registered with LPL Financial LLC has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings that Rapisarda engaged in prohibited securities transactions during the period in which he was associated with LPL Financial. Letter of Acceptance Waiver and Consent No. 2019061034501 (Aug. 28, 2020).
According to the AWC, from February of 2018 to March of 2018, during the time that Rapisarda was associated with LPL Financial, he executed securities transactions that were not authorized by the securities broker dealer. The stockbroker initiated securities transactions for a company in which he was a minority shareholder.
The AWC stated that four investors had been advised by Rapisarda to invest in that company. This included one person who held accounts at LPL Financial. All but one of the investors purchased the company’s shares. Those individuals received help from Rapisarda to complete purchases.
During this time, Rapisarda was required to provide notification in writing to LPL Financial regarding any transactions that he wished to engage in away from the securities broker dealer. FINRA stated that the transactions Rapisarda engaged in did not fall within the scope of his employment with LPL Financial. The securities broker dealer was never provided information from Rapisarda regarding his role in the transactions. The stockbroker was never provided authorization either. Rapisarda’s actions were violative of FINRA Rules 2010 and 3280.
Rapisarda was discharged by LPL Financial on November 30, 2018 supported by accusations of him selling away from the securities broker dealer. It noted that efforts had been undertaken by Rapisarda without him providing notice and getting its permission.