An Arizona broker-dealer has been penalized in connection with the fraudulent activities of one of its former registered securities salesmen, Investment News reports.
The Arizona Corporation Commission (ACC) ordered Scottsdale-based United Planners Financial Services of America (UPFS) to pay nearly $1.06 million in restitution and an administrative penalty of $50,000 for failing to discover fraud conducted by the late Philip Riposo of Cave Creek.
The commission found Riposo, who worked for UPFS from December 2013 through March 2022, stole money from 24 of his clients and issued them fake financial statements to conceal the scheme.
Despite examinations by the firm, Riposo’s fraud was not uncovered until one of his clients filed a complaint against him in March 2022 when he had trouble accessing the funds in his investment account. The ACC said four firm employees then made an unannounced visit to Riposo’s home office.
“Riposo initially denied entry, claiming to be suffering from COVID,” the commission said. “Riposo eventually allowed access to his office but denied any wrongdoing. However, when confronted with the documents [the firm] had gathered through its investigation, Riposo admitted to taking funds from multiple customers for his personal use.”
At that point the salesman admitted to engaging in these kinds of activities for over 30 years. The ACC brought action against Riposo in 2023 but he died before any decision was concluded in the case.
In settling the case, UPFS did not admit or deny the findings but agreed to the entry of the consent order.
The Financial Industry Regulatory Authority barred Riposo from the securities industry in 2022 after reaching a settlement with him in a related matter.
United Planners discharged Riposo in 2022, after he “admitted to creating and providing clients with fictitious statements from Zurich Kemper Investments” and cashing checks from clients made out to Riposo Asset Management and using the money to cover personal expenses,” according to his record.
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