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Did Stephen Anthony Nappo Cause You Investment Losses?

Stephen Anthony Nappo of Clarence Center, New York submitted a Letter of Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority in which he was fined $5,000 and suspended from association with any FINRA member for a period of 20 business days. The sanctions were based on findings that he allegedly participated in private securities transactions in violation of FINRA Rules 3280 and 2010. The suspension is in effect from January 4, 2021, through February 1, 2021.

In January 2015, Stephen Anthony Nappo joined Cadaret Grant and became registered as an Investment Company and Variable Contracts Products Representative. According to the FINRA findings, Nappo allegedly participated in a private security transaction by purchasing a $50,000 promissory note without seeking or obtaining approval from Cadaret Grant. The FINRA findings state that the promissory note was a security, and it was outside the scope of his employment with his firm. In addition, the findings state that Nappo falsely attested on his firm’s annual compliance questionnaires that he had not participated in any private securities transactions.

FINRA Rule 3280 requires that prior to “participating in any manner” in a private securities transaction, a person associated with a member firm shall provide written notice to his or her firm “describing in detail the proposed transaction and the person’s proposed role therein.” FINRA Rule 3280 defines a private securities transaction as “any securities transaction outside the regular course or scope of an associated person’s employment with a member.” A violation of FINRA Rule 3280 is also a violation of FINRA Rule 2010, which requires FINRA members and associated persons to “observe high standards of commercial honor and just and equitable principles of trade.”

Do You Need a New York FINRA Securities Arbitration Attorney?

Did your New York stockbroker or investment advisor recommend an investment that turned out to be an investment that was never reviewed or approved by their stockbrokerage firm employer? The stockbrokers who stoop to that level are usually insolvent or uncollectible. And so, the investor’s only recourse is against the brokerage firm employer. But stockbrokerage firms always claim ignorance of the stockbroker’s activities and deny liability for the sale of unauthorized investments which they call Selling Away as if that was an absolute defense. Not so! You will definitely need an experienced attorney who knows the securities laws and how to hold the stockbrokerage firm responsible for their employees Selling Away under legal principles of actual authority, apparent authority, estoppel, and failure to supervise. If your attorney knows where to look, he/she can often find Red Flags of the alleged unauthorized sales that the firm did not look for, missed, or saw and just ignored.

Free Initial Consultation With  Experienced Attorneys Representing Clarence Center, New York Residents in FINRA Arbitrations

At The Law Offices of Robert Wayne Pearce, P.A.  we represent investors in all kinds of securities, commodities, and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout New York, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award.

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For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities, and investment law disputes serving New York citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail. 

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Robert Pearce

Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $125 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.

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