Stephen Nappo (CRD #: 1691373), a broker registered with Cadaret, Grant, & Co, has been suspended by the Financial Industry Regulatory Authority (FINRA), according to his BrokerCheck record, accessed on January 27, 2021. Details regarding the allegations that led to his suspension are provided below.
On December 4, 2020, Stephen Nappo entered into an Acceptance, Waiver, and Consent agreement (AWC) with FINRA. AWCs allow brokers to consent to FINRA’s findings without admitting to or denying any of the allegations. As part of the agreement, Nappo consented to the findings that he participated in a private securities transaction without providing prior written notice to his firm. His private securities transaction consisted of a purchase of a $50,000 promissory note issued by a company that manufactured and sold coffee products. According to FINRA rules, brokers are not allowed to enter into transactions outside of their member firms without providing written notice to their member firm. As per the terms of the AWC, Nappo agreed to a 20-day suspension and a $5,000 fine. You can read a copy of the AWC here.
On January 12, 2015, Stephen Nappo voluntarily resigned from Financial West Group, following allegations that he violated FINRA Rule 2330, which addresses how representatives manage variable annuities. Variable annuities are quite complex and FINRA Rule 2330 requires that representatives must believe that investors have been informed of the annuities’ features as well as their level of risk.
Stephen Nappo has passed the Series 63 Uniform Securities Agent State Law Examination, the Securities Industry Essentials Examination, and the Series 6 Investment Company Products/ Variable Contracts Representative Examination. He is a registered broker in New York, North Carolina, and Pennsylvania.
During his 33 years in the securities industry, Nappo has worked at the following firms:
- Financial West Group (CRD #: 16668)
- John Hancock Mutual Life Insurance Company (CRD #: 5181)
- Signator Investors (CRD #: 468)
- MML Investors Services (CRD #: 10409)
If Stephen Nappo was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta. Call (877) 238-4175 or email firstname.lastname@example.org for a free case consultation with a securities attorney.