Ernest D. Kappotis
History Of Ernest D. Kappotis
Kappotis first became registered with FINRA in 2005. From January 2019 to November
2020, he was registered with FINRA as a Financial and Operations Principal (FINOP),
among other capacities, through an association with CBC Securities, Inc. (CRD No.
46153).
Kappotis currently is registered with FINRA through associations with six other FINRA
member firms
Ernest D. Kappotis Report
This matter originated from a routine fn-m examination of CBC Securities.
FINRA Rule 2010 requires members and associated persons to “observe high standards of commercial honor and just and equitable principles of trade.” The creation of a backdated document for submission to FINRA is inconsistent with this standard and is a violation of Rule 2010.
On October 22, 2019, in connection with a routine examination of the firm, FINRA Staff
requested that the firm provide lists of the outside business activities (OBAs) of the
firm’s registered persons, and, if available, documents showing the firm’s approval of
those OBAs. On November 4, 2019, Kappotis created a document containing a list of his OBAs. Kappotis backdated that OBA list to October 1, 2019. Kappotis knew that the
document would be submitted to FINRA when he created and backdated it. The
backdated document was, in fact, produced to FINRA.
Although the firm had approved Kappotis’ OBAs, the backdated document that Kappotis created purported to show that he had provided prior written notice to the firm of his OBAs in the form of a list when, in fact, that was not the case.
Therefore, Kappotis violated FINRA Rule 2010.
Penalties, Punishments & Sanctions
A two-month suspension from associating with any FINRA member in any
capacity; and• a $5,000 fine.
Respondent agrees to pay the monetary sanction upon notice that this AWC has been accepted and that such payment is due and payable. Respondent has submitted an Election of Payment form showing the method by which he proposes to pay the fine imposed.
Respondent specifically and voluntarily waives any right to claim an inability to pay, now or at any time after the execution of this AWC, the monetary sanction imposed in this matter.
Respondent understands that if he is barred or suspended from associating with any
FINRA member, he becomes subject to a statutory disqualification as that term is defined in Article III, Section 4 of FINRA’s By-Laws, incorporating Section 3(a)(39) of the Securities Exchange Act of 1934. Accordingly, he may not be associated with any
FINRA member in any capacity, including clerical or ministerial functions, during the
period of the bar or suspension. See FINRA Rules 8310 and 8311.
Ernest D. Kappotis Review
During a routine examination of CBC Securities, Kappotis created a backdated
document, which he knew would be submitted to FINRA. He thereby violated FINRA
Rule 2010.
Who is the Financial Adviser?
A financial adviser or advisor is a professional who offers financial services to clients based on their financial situation. In several countries, financial advisors have to finish specific training and register with a regulatory body to provide advice.
How To Spot A Fraud Finance Advisor (Infographic)
Help For Victims Of Ernest D. Kappotis
If you have lost funds because of misrepresentation, unsuitable investment, or unsuitable investment strategy from Ernest D. Kappotis. Then you can take legal action and get justice. Fraud, Malpractice & dereliction of duty should not be taken lightly, especially in this industry. We highly suggest that you notify authorities or seek legal action if your financial advisor or brokerage firm fails to abide by FINRA’s rules are regulations.
Similar review: Richard Scott Shelley
Financial advisors are regulatory & legally obligated to suggest (recommend) the most suitable investments/investment strategies to their clients. Their suggestions should have their client’s best interests and should be appropriate for their client’s goals and needs. Similarly, the brokerage firm which hires financial advisors also has a regulatory & legal obligation to keep a close watch and supervise their Financial Advisors’ practices & behavior. They need to make sure that the financial advisor is not being manipulative or having an unreasonable bias towards certain investments. If the financial advisor and/or the brokerage firm breaches these duties, then the client/customer may be entitled to a full or partial recovery of their losses.
Financial advisors need to have the interest of their clients when giving suggestions related to investments and investment strategies. Reasonable basis suitability requires the advisor to do their best to analyze & identify the risks and rewards associated with their suggested investment and/or investment strategy.
Larry Bowman
Andrew Kirby
Dr. Henrique Duck, PhD in Media Studies and Critical Theory, specializes in writing detailed critics stories and reviews. He has contributed to prominent newspapers and websites, providing insightful analysis of media content and its effects on society.
