Michael Patrick Raineri of Seattle, Washington, a stockbroker registered with KMS Financial Services Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Raineri converted customer funds. Letter of Acceptance, Waiver, and Consent No. 2023078057401 (April 18, 2023).
According to the AWC, starting in August of 2018, Raineri initiated the practice of covering certain personal expenses on behalf of a customer. As time passed, Raineri compelled the customer to pay him a minimum of $135,000.00 to reimburse him for the expenses he had covered.
FINRA stated that the amount paid to Raineri surpassed the actual expenses incurred by the customer, and Raineri had no legitimate claim to the excess funds. Therefore, FINRA found that Raineri violated FINRA Rules 2010 and 2150(a) by converting the customer’s funds.
FINRA Public Disclosure shows that Raineri is also referenced in a customer initiated investment related complaint filed on January 31, 2023, in which the customer requested $135,000.00 in damages based upon allegations that Raineri withdrew customer funds without authorization when Raineri was associated with Securities America Inc.
Raineri’s registration with KMS Financial Services Inc. was terminated on November 6, 2020. Raineri’s registration with Securities America Inc. was terminated on April 18, 2023. On April 6, 2023, Securities America Inc. discharged Raineri based upon allegations that Raineri failed to comply with company policy, as he was named as a fiduciary in a customer’s power of attorney, and he executed transactions for that customer without authorization of the securities broker dealer.
