According to a recent FINRA Disciplinary Action, Joseph Thomas Pappalardo (CRD #2088747, Claremore, Oklahoma) submitted an AWC in which he was barred from association with any FINRA member in any capacity.
Without admitting or denying the findings, Pappalardo consented to the sanction and to the entry of findings that he made fraudulent and misleading misrepresentations to a customer in the sale of private securities in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The findings stated that Pappalardo intentionally made material misrepresentations and omissions to the customer in order to convince the customer to invest $100,000 in a fictitious company. Pappalardo converted the customer’s funds to his own uses. Pappalardo failed to give prior written notice to, or obtain prior written approval from his member firm to engage in these transactions. The findings also stated that Pappalardo solicited and sold investments in a real estate company. Pappalardo failed to give prior written notice to, or obtain prior written approval from his firm to engage in these transactions.
The findings also included that Pappalardo repeatedly failed to disclose other outside business activities to his firm. Pappalardo falsely described his participation in outside business activities and private securities transactions on his firm’s annual compliance questionnaires, and falsely stated on a Pre-Registration Questionnaire that his real estate company was no longer in business. FINRA found that Pappalardo willfully failed to amend his Form U4 to disclose his outside business activities.
For the full case information, see FINRA Case #2012034045401.
According to his FINRA Broker Check Report, Pappalardo was registered with Financial Network Investment Corporation from August 2008 through September 2012.
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
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