National investment loss and securities lawyers KlaymanToskes report that the Arizona Corporation Commission (“ACC”) has ordered United Planners Financial Services of America to pay more than $1 million due to allegations of fraud by one of its former brokers, Philip Riposo (CRD# 400056) of Cave Creek, Arizona.
According to the ACC’s findings, United Planners failed to adequately supervise Riposo, allowing him to defraud 24 clients over several decades. Riposo was discharged by United Planners in 2022, after he allegedly admitted to creating and providing clients with fictitious statements from Zurich Kemper Investments. Further, Riposo was found and admitted to receiving and depositing checks from clients made out to Riposo Asset Management, his Doing-Business-As (“DBA”) name, against the firm’s policy.
Riposo reportedly used bogus financial statements to cover up his fraudulent activities, which were only uncovered after an investor filed a customer complaint. Following the discovery, Riposo admitted to running the scheme for over 30 years.
If you suffered losses with Philip Riposo and/or any other financial advisor at United Planners Financial Services, contact KlaymanToskes at 888-997-9956 or by email at investigations@klaymantoskes.com for a free and confidential consultation.
The ACC has mandated that United Planners pay approximately $1.06 million in restitution to the affected clients and an additional $50,000 as an administrative penalty. This settlement highlights United Planners’ significant supervisory lapses, which allowed Riposo to operate his fraudulent scheme unchecked.
Riposo’s career in the financial services industry began in 1973. Throughout his career, he was registered with ten different firms, including Merrill Lynch and LPL Financial, before joining United Planners in 2015. Despite this extensive history, United Planners reportedly failed to detect Riposo’s fraudulent activities until it was too late.
In 2022, Riposo was discharged from United Planners after admitting to creating fictitious statements and cashing checks from clients to cover personal expenses. In November 2023, the Financial Industry Regulatory Authority (FINRA) barred Riposo for failing to cooperate with its investigation.
United Planners’ regulatory challenges are not isolated incidents. The firm has faced multiple regulatory actions, underscoring the ongoing issues within its supervisory framework. The ACC’s decision to impose substantial restitution and penalties on United Planners is a stark reminder of the importance of robust supervisory systems in the financial services industry. Broker-dealers must implement comprehensive oversight mechanisms to prevent and detect misconduct by their brokers, protecting clients from potential fraud and financial losses.
Investors may be entitled to a financial recovery if their brokerage firm failed to supervise the representative managing their brokerage account, and/or if their broker/advisor made unsuitable investment recommendations.
Brokerage firms have a duty to supervise their brokers adequately and ensure that their clients’ investments are managed appropriately. Failure to do so can result in significant financial harm to investors, who may then have grounds to seek restitution.
If you believe you have been a victim of broker/financial advisor misconduct, or have concerns about your investment portfolio, contact KlaymanToskes at 888-997-9956 or by email investigations@klaymantoskes.com for a free and confidential consultation to discuss your recovery options.
KlaymanToskes is a leading national securities law firm specializing in securities arbitration and litigation on behalf of retail and institutional investors. The firm has recovered over $600 million for clients in FINRA arbitrations and other securities litigation matters. With offices in California, Florida, New York, and Puerto Rico, KlaymanToskes is committed to helping investors recover their losses and hold brokerage firms accountable for their actions.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
investigations@klaymantoskes.com
www.klaymantoskes.com