February 2018 update. Link to Rafal’s official FINRA record which discloses 3 final regulatory events, one final criminal proceeding, a customer dispute and a termination from employment.
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 $275,000. 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.
Rafal was charged with Obstruction of Proceedings in U.S. District Court for the District of Massachusetts and in 4/ 2017 was sentenced to one year probation with four months home confinement.
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.
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