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The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Thomas Stappas. According to his publicly available FINRA BrokerCheck report, Thomas Stappas has been the subject of a FINRA sanction.

Thomas Stappas was a New Jersey based securities broker. He worked in the securities industry for thirty-eight years. During his carer, he was registered with just two different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • Cigna Securities (1978-1992)
  • Summit Equities (1993-2018)

The Allegations

Thomas Stappas was officially sanctioned by FINRA in September 2019. The findings in this matter state that he failed to comply with a FINRA investigation into allegations that he engaged in outside business activities and recommended private securities to customers at his member firm. None of this had been disclosed to his member firm prior to him engaging in it. Due to these alleged actions, he was barred by FINRA from acting as a securities broker in any fashion. He had been terminated from his position at Summit Equities on year prior when the allegations first came to light.

What Does This Mean?

Securities brokers are not allowed to recommend privately traded securities to member firm customers without first disclosing their intent to their member firm. This is because privately traded securities are outside the scope of most securities firms. This makes it incredibly difficult for these firms to monitor these investments. Also, very often, these types of products are detrimental to investors. Securities firms want to prevent their customers from being harmed in this fashion and thus require their registered brokers to disclose their intent to recommend private investments to member firm customer prior to them doing so. This gives securities firms the opportunity to decide if the investment is actually suitable, or if any member firm customer will be harmed by it. However, securities firms are not absolved from liability simply because a securities brokers fails to disclose their intent to engage in these private activities. Securities firms need to have adequate procedures in place designed to supervise registered brokers and prevent them from engaging in any unauthorized and harmful activities.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Thomas Stappas, please contact Oakes & Fosher for a free and private consultation. We work on a contingency basis, which means there are no fees charged unless we collect for you.