Kevin Zappia Suspended over Trading Allegations
Kevin Zappia (CRD# 1360824), a broker registered with The Investment Center, violated securities industry rules, according to a recent sanction. MDF Law is currently investigating the Manlius, New York financial professional for similar conduct. We encourage investors with concerns about their accounts to contact us immediately.
For more information about the allegations against him, continue reading this post. The details herein are found in his Financial Industry Regulatory Authority (FINRA) BrokerCheck profile, accessed on November 28, 2023.
FINRA Suspends Kevin Zappia
On October 25, 2023, FINRA released a Letter of Acceptance, Waiver, and Consent (AWC Letter #2023079976101) detailing its disciplinary action against Mr. Zappia. The action alleged that in a period beginning in September 2020 and ending in August 2021, Mr. Zappia mismarked a total of 73 order tickets as unsolicited. In fact, according to FINRA, he had solicited the trades in question. His alleged mismarking of the order tickets “caused The Investment Center to make and preserve inaccurate books and records” concerning the trades, a violation of securities law and FINRA rules.
Mr. Zappia did not admit to or deny FINRA’s findings. He did, however, consent to a 15-day suspension from associating with any FINRA member in all capacities. He also consented to the imposition of a fine of $2,500.
Sanction Alleges Rule Violations
According to FINRA’s disciplinary action, Mr. Zappia’s alleged conduct violated FINRA Rules 4511 and 2010. FINRA Rule 4511, the AWC Letter explains, requires FINRA member firms “to make and preserve books and records” in accordance with Exchange Act 17(a) and Rule 17a-3 thereunder. This rule establishes a requirement that FINRA member firms create and maintain records of every brokerage order. The records must document “the terms and conditions of the order,” for instance, whether it was solicited by a broker or unsolicited. “Inherent in the obligation to make and preserve books and records is the requirement that they be accurate,” FINRA’s AWC Letter states. When registered representatives cause their member firm to fail to uphold their record-keeping obligations, they violate FINRA Rule 4511.
What Is FINRA Rule 2010?
As FINRA explains in the AWC Letter, violations of Rule 4511 are also violations of Rule 2010. Under the latter rule, registered representatives must “observe high standards of commercial honor and just and equitable principles of trade” while conducting their business.
FINRA: Zappia Based in Manlius, New York
Kevin Zappia launched his career as a broker in 1985, when he registered with Travelers Equities Sales. He remained at the firm for almost a year, departing in 1986 for Cadaret Grant & Company. His career includes tenures at Advantage Capital and Tower Square Securities, as well as Investors Capital Corporation. He joined his current member firm, The Investment Center, in 2016, working out of its office in Manlius, New York. With 38 years of experience as a broker, he has completed four industry exams, including the Series 63 and the Series 6.
Investment Losses? Call MDF Law
Are you a current or former client of Kevin Zappia with concerns about your investments? Do you feel your account contains unsuitable products, or securities whose risks were not fully disclosed? You may be able to file a FINRA arbitration claim to recover losses. MDF Law’s broker fraud attorneys have decades of experience advocating for investors, securing tens of millions in recoveries. We accept cases on contingency, meaning clients only pay a fee when they win, and offer free consultations nationwide. Call 800-767-8040 today to speak with our team.