Category Archives: Essex Financial Services

John W. Rafal-Essex Financial Former President/CEO-Sentenced

May 2017

The U.S. Attorney’s Office for the District of Massachusetts announced in a press release that John William Rafal, 67, the former president and chief executive of Essex Financial  has been sentenced to a year of probation for making referral payments to an attorney who referred him a wealthy client. Four months of the probation is to be served in home detention and he was assessed a fine of $4,000.

In January 2017, Rafal entered into an agreement with the Securities and Exchange Commission barring him for life from the securities industry and a fine and disgorgement of over $500,000. The SEC alleged that Rafal and a Connecticut attorney fraudulently schemed to circumvent the rule regarding payments for client solicitations. According to the SEC allegations the client was an elderly widow with accounts worth $100 million.

According to the Investment News, after Mr. Rafal had paid a portion of the referral fee to the attorney, his company found out and directed Rafal to have the attorney return the money, but Rafal then secretly paid the referral fee to the attorney from his private checking accounts.

Essex Financial  has been a FINRA member since 2003 and is headquartered in Essex, CT. Essex Financial is licensed in 48 U.S. states and territories.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Former Essex Financial CEO Sanctioned by Regulators-Faces Home Confinement

January 2017-Old Lyme, Connecticut

The Day, an online news service covering a 20 town region in eastern Connecticut reports that John W. Rafal, 66, of Old Lyme, founder and former CEO of Essex Financial Services faces four months home confinement and four months probation and a fine of $4,000 for lying to Securities and Exchange Commission investigators who were looking into illegal referral payments to a Branford lawyer for steering clients to the firm.

According to the article, Rafal had made a deal with attorney Peter D. Hershman to pay him $50,000 for referring the business of a wealthy widow to Essex Financial.

Publicly available records reveal that in January 2017 Rafal was permanently barred from acting as a broker or investment adviser or otherwise associating with firms that sell securities or provide investment advice to the public.

The SEC Order can be viewed here.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870