FINRA’s Department of Enforcement investigated DeFilippis and found he caused the withdrawal of funds from the bank account of an elderly JP Morgan customer and deposited those funds into an account in his own name at another bank. Specifically, FINRA alleges DeFilippis provided banking services to a 90-year-old JP Morgan client who was in failing health and mental condition.
According to FINRA, DeFilippis arranged for a friend to serve as a co-trustee in order to try to conserve the client’s assets because DeFilippis was concerned the elderly client was giving away his assets to a younger woman with a criminal record. In October 2013, DeFilippis convinced the elderly client, with the help of the co-trustee, to withdraw the entire amount of his JP Morgan account at the time ($264,000). The elderly customer then drew a cashier’s check made out to DeFilippis in the amount of $262,000, as well as provided DeFilippis with $2,000 in cash. FINRA alleges DeFilippis opened an account at another bank in his own name, with the elderly customer as the death beneficiary, and deposited the check into that account.
Based upon the foregoing misconduct, FINRA alleged DeFilippis violated FINRA Rule 2010 for causing the withdrawal of a bank customer’s funds and depositing the funds into an account in his own name. According to FINRA, “[i]t is well established that conversion violates the ‘high standards of commercial honor and just and equitable principles of trade’ required by FINRA Rule 2010.”
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you lost money investing with DeFilippis, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.