Richard Rappaport Subject of FINRA Fine and Suspension
Richard Rappaport (CRD #: 1885122), a broker registered with Westpark Capital, consented to a FINRA suspension together with a fine according to his BrokerCheck Record, accessed on January 27, 2022.
FINRA Letter of Acceptance, Waiver, and Consent Agreement
According to an Acceptance, Waiver, and Consent agreement dated November 22, 2021, Richard Rappaport consented to the following findings:
Negligent Misrepresentations and Omissions Allegations
Without admitting or denying the findings, Rappaport consented to the sanctions and to the entry of findings that between January 2012 and January 2018, while soliciting investments in the WPCFS Offerings, Richard Rappaport, through his member firm WestPark Capital made certain misrepresentations and failed to disclose material information to prospective investors.
What are WPCFS Offerings?
Between January 2012 and January 2018, WestPark Capital sold 33 promissory notes issued by WestPark's parent company, WPCFS, to 21 customers, raising a total of $3.9 million.
The WPCFS Offerings were sold in four separate offerings as promissory notes with three- or five-year terms. Each note promised investors 5% interest per year.
The offering documents failed to disclose that the WPCFS had defaulted on the line of credit and had defaulted on successive forbearance agreements with the bank or that the bank had sued the parent company and Richard Rappaport. Similarly, the offering documents failed to disclose that WPCFS had net operating losses each year from 2012 through 2016. Omitting material information is a violation of FINRA Rule 2020.
Failure to Supervise Allegations
According to the findings, Richard Rappaport was responsible for the final approval of the offering documents and was the designated supervisor with respect to WestPark's private placement business. As a result, he violated FINRA Rules 3110 and 2010.
As part of the terms of the AWC, Richard Rappaport consented to:
- 15-month suspension
- $30,000 fine
You can read a copy of the AWC here.
On June 8, 2020, Richard Rappaport was named in an investor dispute alleging failure to supervise. The investor is seeking $1,000,000一the dispute is still pending.
FINRA 3110 requires firms to maintain a supervisory system reasonably designed to achieve compliance with FINRA rules. It also requires that the firm designate a registered principle whose job it is to carry out supervisory responsibilities. The firm must make reasonable efforts to determine that all supervisory personnel are qualified, either by experience or training.
Richard Rappaport Background Information
Richard Rappaport has passed the following exams:
- Series 63 - Uniform Securities Agent State Law Examination
- SIE - Securities Industry Essentials Examination
- Series 55 - Limited Representative-Equity Trader Exam
- Series 7 - General Securities Representative Examination
- Series 24 - General Securities Principal Examination
Richard Rappaport is a registered broker in five states.
Besides WestPark Capital, Richard Rappaport has also worked with the following firms:
- EBI Securities Corporation (CRD#:16184)
- Joseph Charles & Assoc. (CRD#:3949)
- J. Meyers & Co.(CRD#:7183)
Kurta Law Can Help
If you have been victimized by Richard Rappaport as a broker, don't hesitate to get in touch with us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
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