Thomas Stappas of Parsippany New Jersey a stockbroker formerly registered with Summit Equities Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Stappas failed to comply with FINRA staff during an investigation into accusations of (1) undisclosed private securities transactions being recommended by Stappas to customers of Summit Equities and (2) undisclosed outside business activities having been undertaken by Stappas while associated with Summit Equities. Letter of Acceptance Waiver and Consent No. 2018059326201 (Sept. 13, 2019).
According to the AWC, information and documentation was requested from Stappas by FINRA personnel on May 28, 2019 according to Rule 8210. The AWC reported that the request had been made as part of an investigation into allegations of outside business activities and private securities transactions being executed by Stappas without the stockbroker having notified his securities broker dealer employer.
The AWC stated that Stappas was expected to furnish information and documentation to FINRA by a June 7, 2019 deadline; however, he failed to do so. Apparently, on June 12, 2019, another request was made by FINRA which gave Stappas until June 26, 2019 to comply. FINRA indicated that Stappas again failed to respond by the deadline.
FINRA personnel were subsequently contacted by Stappas’ legal counsel between July 15, 2019 and July 19, 2019 in which the regulator was made aware that Stappas acknowledged the requests but was not inclined to honor them. Stappas subsequently confirmed with FINRA that he would not be providing any information or documentation at any time in regard to his outside business activities or private securities transactions. FINRA found Stappas’ conduct violative of FINRA Rules 2010 and 8210.
Stappas was discharged by Summit Equities Inc. on July 3, 2018 based upon accusations that the stockbroker sold away from the firm and engaged in outside activities in a manner which ran afoul of the procedures of the firm as well as FINRA rules.
