gavel on money

David John Volpe of Scottsdale Arizona a stockbroker employed by First Financial Equity Corporation is referenced in a customer initiated investment related arbitration claim in which the customer sought more than $5,000.00 in damages founded on allegations that the customer’s funds had been converted by the stockbroker. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-02492 (Aug. 6, 2020).

According to the claim, the customer’s assets were misused between 2015 and 2019 during the period that Volpe was associated with First Financial Equity Corporation as well as LPL Financial LLC and National Planning Corporation. Funds were applied towards Volpe’s own benefit after the customer had been asked by the stockbroker to write out checks to him.

This is the first customer dispute since Volpe was sanctioned by FINRA. On August 2, 2019, Volpe was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Volpe failed to produce documents and information for FINRA’s review during its investigation into accusations of Volpe’s private securities transactions as well as Volpe’s unapproved borrowing arrangement with a customer of First Financial Equity Corporation. Letter of Acceptance Waiver and Consent No. 2019062404601 (Aug. 2, 2019).

According to the AWC, Volpe was instructed by the regulator to hand over documents and information as a condition of complying with Rule 8210. FINRA received correspondence from Volpe in June of 2019 revealing that Volpe understood the nature of FINRA’s requests and would not be complying with those requests any time. Volpe’s refusal to comply constituted the violation of FINRA Rules 2010 and 8210.

Volpe was discharged by LPL Financial LLC on December 27, 2018 supported by allegations that he sold away from the securities broker dealer or was engaging in efforts to raise capital without obtaining authorization from LPL Financial. The stockbroker was discharged by First Financial Equity Corporation on April 26, 2019 founded on accusations of his failure to report his status with a private securities transaction. First Financial Equity Corporation also alleged that Volpe borrowed funds without permission.