Conversion and Theft FINRA Arbitration and Litigation Lawyer, Russell L. Forkey, Esq.

September, 2011:

John Thomas Pappas (CRD #4240283, Registered Representative, Helena, Alabama)submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Pappas consented to the described sanction and to the entry of findings that he converted funds totaling $157,563.75 from customer accounts, without the customers’ knowledge or authorization, and attempted to convert an additional $14,260 from another customer account. The findings stated that in each instance, Pappas misappropriated the funds by activating the online bill payment feature in the clients’ accounts and then directed payments to his personal credit cards. The findings also stated that Pappas placed an unauthorized trade totaling $6,893.43 in a deceased firm customer’s account. FINRA found that Pappas refused to respond to FINRA requests for information and testimony.  (FINRA Case #2010021962101).