Investigation: Financial Advisor Michael Rappa Allegedly Sold $2.7 Million in the Woodbridge Ponzi Scheme

Investigation: Financial Advisor Michael Rappa- Woodbridge Ponzi SchemeMichael Rappa (CRD#: 4799159) was a registered broker from 2004 to 2017. Most recently, Mr. Rappa was employed at Foresters Equity Services, Inc. in San Diego, California. In February of 2019, the Financial Industry Regulatory Authority (FINRA) permanently barred Mr. Rappa from the securities industry for his role in selling more $2.7 million of fraudulent Woodbridge promissory notes to investors.

Woodbridge Ponzi Scheme: Allegations Against Michael Rappa

In late 2017, the Woodbridge Wealth companies were exposed as a Ponzi scheme. Notably, many fraudulent Woodbridge securities were sold to investors by registered brokers who received significant compensation for offering these financial products.

According to FINRA, former Foresters Equity Services broker Michael Rappa offered Woodbridge promissory notes to investors in undisclosed, unapproved private securities transactions. FINRA alleges that Mr. Rappa violated Rule 3280 by failing to seek or obtain permission to participate in these transactions from his member firm.

Altogether, Mr. Rappa sold more than $2.7 million fraudulent Woodbridge notes to least 21 different investors — several of whom were customers of his member firm. In relation to these improper transactions, Mr. Rappa received more than $100,000 in commissions. Without admitting or denying wrongdoing, Michael Rappa consented to FINRA’s proposed penalties, including accepting an indefinite bar from the securities industry.

Contact Our Ponzi Scheme Losses Attorneys Today

At Sonn Law Group, our law firm fights for the rights of investors. If you lost money as a result of the Woodbridge Ponzi scheme, our law firm is here to help. For a free review of your case, please contact us today.

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