Category Archives: Princor Financial Services

Michael Rappa-Former Foresters Equity Services Broker Barred from FINRA-Discloses Regulatory Event and Two Pending Customer Disputes-Rocklin, CA

June 2020- San Diego, CA

The FINRA records of Michael Rappa, a broker previously employed  by  Foresters Equity Services,  disclose  a regulatory event resulting in his bar from the securities industry and two pending customer disputes.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In February 2019, Rappa was permanently barred from the securities industry by the Securities and Exchange Commission after allegations that he engaged in undisclosed and unapproved private securities transactions.  The findings stated that Rappa solicited investors to purchase promissory notes relating to a purported real estate investment fund.   Rappa sold $2,731,287 in the fund’s notes to investors, some of whom were customers from his member firm and he received a total of $109,939 in commissions in connection with these transactions.   Later the fund filed a voluntary Chapter 11 bankruptcy petition.

In March 2018,  a customer of Foresters Equity Services, Inc., filed FINRA case 18-1103 alleging that Rappa made unsuitable private securities transaction recommendations and is seeking damages of $75,000.   This case is still pending.

In February 2018, a customer of Foresters Equity Services, Inc., filed FINRA case 18-552 alleging that Rappa made unsuitable private securities transaction recommendations and seeks damages of $700,000.  The case is pending.

From March 2018 until February 2019,  Rappa was employed by LifePro Asset Management.    He was employed with Foresters Equity Services, Inc.  from September of 2010 until July of 2017.  Before that he worked with Princor Financial Services Corporation, Metlife Securities, Inc.  and Metropolitan Life Insurance Company.    

If you have problems in an account  handled by Michael Rappa call for a no charge consultation .

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.

International Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Peter Terlecky, Former Princor Financial Services Broker Named in Regulatory Complaint Over Annuity Swapping

October 29,2014-Amherst New York

The Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) filed a disciplinary complaint against Peter Michael Terlecky, for circumventing his firm’s supervisory and compliance procedures by concealing and failing to process 26 variable annuity purchase transactions totaling over $2 million.

According to the compliant Terlecky concealed the replace of annuities with new annuities by structuring them as separate trades rather than through annuity exchanges as required by firm policy. He accomplished this by transferring the proceeds of the annuity sale to a money market account, and then after waiting a few days, using the funds to purchase a new variable annuity.

By doing this Terlecky was able to earn greater commissions and to conceal the annuity replacements from the firm’s compliance department.

According to the complaint, customers suffered harm by being deprived of receiving disclosures of material facts regarding annuity replacements and the opportunity of performing a meaningful comparison between the annuities they were selling and those being purchased. In ten instances, the complaint alleges that customers unnecessarily incurred new seven year surrender periods with their replacement variable annuities.

Terlecky was registered with Princor Financial Services Corporation at the time of the alleged wrongdoing. He was permitted to resign from Princor  Financial in August of 2011 after an internal investigation revealed the annuity swapping. According to FINRA records Terlecky has been registered with MML Investors Services since November 2011.

If you believe you have been the victim of annuity churning or annuity swapping, contact us to discuss how you may be entitled to damages.

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