Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that advisor Michael Rappa (Rappa) engaged in undisclosed and unapproved private securities transactions. According to records kept by The Financial Industry Regulatory Authority (FINRA), Rappa, formerly registered with Foresters Equity Services, Inc. (Foresters Equity) out of San Diego, California was barred from the financial industry and disclosed at least two customer complaints. According to a BrokerCheck report, Rappa’s customer complaints allege that Rappa made unsuitable private securities transaction recommendations.
In February 2019, FINRA stated that Rappa consented to the sanction and to the entry of findings that from August 2016 to July 2017, he engaged in undisclosed and unapproved private securities transactions totaling $2,731,287. The findings stated that Rappa solicited investors to purchase promissory notes relating to a purported real estate investment fund.
In May 2018, a customer alleged that in 2016, Rappa made unsuitable private securities transaction recommendations. The customer has requested $75,000 in damages. This dispute is currently still pending.
In February 2018, another customer similarly alleged that in 2017, Rappa was recommending unsuitable private securities transactions. The customer has requested $700,000 in damages. This dispute is currently still pending.