Sean Vappie, of New Orleans, Louisiana, stockbroker formerly associated with J.P. Morgan Securities is the subject of a customer initiated, investment related “complaint,” seeking $2.1 million in damages which alleges that a representative of JP Morgan Securities, he engaged in “selling away” or conducted an unapproved outside transaction.
Selling away, also known as private securities transactions, or undisclosed outside business activities occurs when a stockbroker engages or participates in the sale of securities to investors outside of the formal approval of the securities firm with whom they are associated.
As a general matter, stockbrokers are only permitted to engage in the solicitation or sale of investments and investment related products approved by their firm. However, quite frequently, stockbrokers solicit, participate, or directly engage in the sale of typically unregistered securities or investments without the approval and outside of the auspices of their firm.
These investments may take on many forms, and may include the recommendation of an outside money manager, or a hedge fund, which may sometimes turn out to be a Ponzi scheme. Sometimes these outside investments may include off-shore securities, insurance trusts, stocks or ownership interests in small businesses, startup ventures, corporate debentures, mortgage notes, private placements, promissory notes, oil & gas interests, real estate partnerships, pre-IPO shares, and a variety of other investments.
Whether a brokerage firm has expressly authorized its stockbrokers to sell or participate in these activities is generally irrelevant. Brokerage firms can be held responsible for the conduct of their registered representatives in “selling away” cases based upon the broker-dealer’s failure to supervise all the activities of their registered representatives.
Liability will also attach to the brokerage firm for these outside or unapproved activities where the stockbroker acted with apparent authority, or the investor reasonably believed that these activities were approved or part of the stockbroker’s activities or services.
Vappie has been registered as a stockbroker for eighteen years, and other than this “complaint,” FINRA Public Disclosure does not show that he has ever been subject to any regulatory action, customer complaint, securities arbitration claim, or any other disclosable matter.
Vappie left J.P. Morgan and joined Edward Jones in August 2025. This complaint was received on January 7, 2026.
The Guiliano Law Group, P.C.
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