Robert Lappin Allegedly Recommends An Unsuitable UIT Trading Strategy

Many investors are not aware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is, investors who have lost money in this fashion, may be entitled to damages. The law firm of Oakes & Fosher is interested in hearing from investors who feel this may be them.

Oakes & Fosher is currenlty investigating former securities broker Roert Lappin. According to his publicly available FINRA BrokerCheck report, Robert Lappin has been the subject of multiple customer disputes.

Robert Lappin operated most recently as an Arizona based securities broker. He worked in the securities industry for twenty-eight years. During his career, he was registered with eight different securities firms.

His Registrations

• Merrill Lynch (1986-1990)


• Lehman Brothers (1990-1993)


• Smith Barney (1993-1997)


• Prudential Securities Incorporated (1997-1999)


• Wachovia Securities (1999-2006)


• Wedbush Securities (2006-2011)


• New England Securities (2011-2015)


• MetLife Securities (2015)

The Allegations

• In August 1995, a customer alleged unsuitability, improper use of discretion, and excessive trading. This case went to arbitration where the customer was awarded $37,187 in damages.


• In July 2009, a customer alleged unauthorized discretionary trading, excessive trading, misrepresentation, and implementation of an unsuitable investment strategy. This case was settled for $206,000 in damages.


• In January 2012, customers alleged that Robert Lappin made unsuitable investment recommendations. This case was settled for $150,000 in damages.


• In October 2016, Robert Lappin was officially sanctioned by FINRA. The findings in this matter state that he recommended a trading strategy of short term UIT trading in multiple customer accounts even though he lacked a reasonable basis to believe that this trading was suitable for them. Robert Lappin's alleged UIT strategy caused his customers to suffer losses. Due to his alleged actions, he was fined $5,000, suspended from acting as a securities broker in any fashion for a period of three months, and forced to pay $26,823 in restitution.

What Does This Mean?

UITs, or Unit Investment Trusts, are products designed for longer term investments. This is because they are designed as collective investments where the investor's profit is meant to be paid through scheduled dividends. This is different then securities brokers purchasing specific securities that experience dramatic changes in market value. Short-term and excessive trading of these products is almost always highly unsuitable due to the fees that occur.

Oakes & Fosher Can Help

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Robert Lappin, please contact Oakes & Fosher for a free and private consultation.