FINRA

Respondent Lappin failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

Order

Suspension

All Capacities

Indefinite

Continues until required payment is made or discharged.

7/26/2017

On July 10, 2017, in response to a notice sent by FINRA pursuant to Rule 9554, Lappin filed a timely request for a hearing. On July 21, 2017, Lappin sent an email notifying the Office of Hearing Officers that he has chosen to withdraw his request for hearing. Accordingly, this expedited proceeding is dismissed; the hearing scheduled for August 10, 2017, is canceled; the notice of suspension dated June 30 2017, is deemed to constitute FINRA's final action; and Lappin is suspended from associating with any member firm in all capacities as of the date of issuance of this Order. The suspension shall continue until Lappin provides documentary evidence to FINRA showing that (1) the arbitration award has been paid in full; (2) he has entered into a fully executed, written settlement agreement with the claimant, and his obligations thereunder are current; (3) the arbitration award has been vacated or modified by a court of competent jurisdiction; or (4) he has filed a petition in a United States Bankruptcy Court and the arbitration award debt has been discharged by a United States Bankruptcy Court.

FINRA

Without admitting or denying the findings, Lappin consented to the sanctions and to the entry of findings that he recommended and effected short-term unit investment trust (UIT) transactions in the accounts of customers without having a reasonable basis for believing that such transactions were suitable in view of the nature of the transactions, the frequency of the transactions, and the transaction costs incurred. The findings stated that even though UITs generally are intended as longer-term investments, the average holding period for the UITs recommended by Lappin was only 101 days. As a result of these transactions, customers incurred additional sales charges and suffered losses.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Restitution

$26,823.96

Suspension

All Capacities

three months

10/17/2016

1/16/2017

UNSUITABILITY, IMPROPER USE OF DISCREATION, EXECESSIVE TRADING, MR. LAPIN WAS NOT NAMED IN THIS MATTER. ALLEGED DAMAGES-UNSPECIFIED

$18,710.47

$37,187.00

AN AWARD WAS RENDERED FOR $35,082.00 IN DAMAGES PLUS $2,105.00 IN INTEREST AGAINST SMITH BARNEY. CONTACT: ELLEN SLIPP #212-816-9553 Not Provided