Tennessee General Securities Representative Suspended for Naming Family Members as Beneficiaries on Customer AccountsMonday, July 15, 2019
The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) against general securities representative and general sales supervisor David Antypas for allegedly naming two of his family members as beneficiaries on a customer’s account.
Antypas has been associated with several FINRA member firms over the past ten years. From July 2008 to December 2017, he was associated with LPL Financial LLC (LPL) in Brentwood, Tennessee. He was discharged from LPL after he allegedly violated firm policies by listing his family members as beneficiaries to the customer’s account. He then was briefly associated with Sandlapper Securities, LLC in Greenville, South Carolina, and two additional firms in Brentwood, Tennessee—CFD Investments, Inc. and IFS Securities from February 2018 to April 2018 and May 2018 to June 2019, respectively.
FINRA Department of Enforcement alleges in the AWC that between July 2014 and December 2017, Antypas recommended that an elderly customer transfer an REIT valued at approximately $52,000, to a Transfer on Death (TOD) Account that she held at LPL. FINRA claims that in an effort to circumvent the firm’s policy, Antypas recommended the customer name his wife as the sole beneficiary on the TOD account and on an additional variable annuity account valued at $36,000.
When the firm updated its written compliance manual and specifically used “wife” as an example of prohibited beneficiary relationships, Antypas subsequently recommended that the customer name his sister as the beneficiary instead of his wife on the two accounts. According to the AWC, Antypas did not disclose to LPL that he named his wife and sister as beneficiaries, and when LPL identified these violations during a branch audit in November 2017, the firm contacted the customer who then removed Antypas’ wife and sister from her beneficiary designations.
Based on the foregoing, David Antypas violated FINRA Rule 2010 because he did not observe “high standards of commercial honor and just and equitable principles of trade.” By signing the AWC, Antypas consented, without admitting or denying the allegations made against him by FINRA, to a two-year suspension from association with any FINRA member firm in any capacity. FINRA did not impose monetary sanctions since Antypas submitted a sworn financial statement and demonstrated an inability to pay.
If a broker was not properly supervised while registered at a brokerage firm, the firm can be held liable for the broker’s misconduct. Did you lose money due to broker negligence or fraud? If so, you may be able to recover from your broker or the brokerage firm where he or she worked. Since 1998, the attorneys at ChapmanAlbin have been representing victims of investment fraud and broker misconduct. Call us (1-877-410-8172) today for a free, no obligation consultation.