INVESTOR ALERT: FINRA Bars Foresters Equity Services Broker Michael Rappa For Selling Away

The Financial Industry Regulatory Authority (“FINRA”) barred Foresters Equity Services securities representative Michael Rappa (CRD#: 4799159, San Diego, CA) for selling away. Notably, Mr. Rappa, who worked for Foresters Equity Services from 2010 to 2017 – submitted a Letter of Acceptance, Waiver and Consent #2018057766401 on January 10, 2019, accepted by FINRA on February 15, 2019. Mainly, FINRA stated Mr. Rappa violated FINRA Rules 3280 and 2010 by engaging in private securities transactions.

Mr. Rappa Sells Promissory Notes To Foresters Investors Without The Firm’s Permission

First of all, the AWC described Mr. Rappa soliciting investors to purchase promissory notes that pertained to a real estate investment fund, Woodbridge Group of Companies LLC. It seems that Mr. Rappa advised 6 Foresters Equity Services customers and 15 other investors to buy promissory notes. In sum, 21 investors purchased the notes for a total purchase of $2,731,287. Notably, Mr. Rappa earned $109,939 from selling the promissory notes. Later, Woodbridge filed a Chapter 11 bankruptcy petition. Evidently, Foresters Equity Services did not know that Mr. Rappa sold promissory notes relating to Woodbridge. Supposedly, Mr. Rappa did not alert the firm in advance of participating in the private securities transactions. For this reason, FINRA stated that Mr. Rappa violated FINRA Rules 3280 and 2010.
Notably, least two customers complained about Mr. Rappa’s sales practices away from Foresters Equity Services Inc.

March 23, 2018 Arbitration Alleging Mr. Rappa’s Unsuitable Investment Recommendations

Evidently, Mr. Rappa’s FINRA BrokerCheck Report shows that a Foresters Equity Services Inc. customer filed FINRA Arbitration #18-01103 on March 23, 2018. Mainly, the customer alleged that Mr. Rappa made unreasonable and unsuitable recommendations about a speculative real estate security. Additionally, the customer claimed that the real estate security purchase occurred through a private securities transaction. Because of this, the customer alleged $75,000 in this pending matter.

February 9, 2018 Arbitration Alleging Mr. Rappa Sold Bad Investments Away From Foresters

Similarly, a customer of Foresters Equity Services specifically targeted Mr. Rappa regarding his private securities transactions by filing FINRA Arbitration #18-00552. Notably, the customer claimed that Mr. Rappa made unsuitable recommendations about a real estate security transaction. Therefore, the customer demanded $700,000.00 in compensation for Mr. Rappa’s alleged actions. Currently, this customer dispute is unresolved.
Experienced losses by investing with Foresters Equity Services broker Michael Rappa? Contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Our firm has recovered millions of dollars for investors who have suffered losses due to broker and brokerage firm misconduct. We represent clients on a contingency fee basis and advance all costs.