FINRA

FINRA RULES 2010, 2150(A), 8210, NASD RULES 2110, 2330(A): A CUSTOMER PURCHASED AN INSURANCE COMPANY'S VARIABLE ANNUITY THROUGH KAPLANIDIS' MEMBER FIRM IN THE AMOUNT OF APPROXIMATELY $215,000. AT THE TIME THE CUSTOMER PURCHASED THE VARIABLE ANNUITY, KAPLANIDIS WAS HIS BROKER OF RECORD. AFTER THE CUSTOMER'S INVESTMENT IN THE VARIABLE ANNUITY, HE MOVED TO A FOREIGN COUNTRY, WHERE HE CURRENTLY RESIDES. THE CUSTOMER'S VARIABLE ANNUITY WAS STRUCTURED TO PROVIDE HIM WITH A MONTHLY STREAM OF INCOME OF APPROXIMATELY $1,025 PER MONTH. THEREAFTER, WITHOUT THE CUSTOMER'S KNOWLEDGE OR CONSENT, KAPLANIDIS OPENED A PERSONAL CHECKING ACCOUNT AT HIS FIRM'S AFFILIATE BANK BRANCH IN THE CUSTOMER'S NAME, USING INFORMATION THE CUSTOMER PROVIDED ON HIS VARIABLE ANNUITY APPLICATION, AND REQUESTED THE ISSUANCE OF AN ATM CARD FOR ACCESS TO THE FUNDS IN THE CHECKING ACCOUNT. KAPLANIDIS FORGED ANNUITY WITHDRAWAL FORMS IN ORDER TO MOVE FUNDS FROM THE CUSTOMER'S VARIABLE ANNUITY TO THE CHECKING ACCOUNT KAPLANIDIS HAD OPENED. DURING THIS TIME, KAPLANIDIS WRONGFULLY TRANSFERRED APPROXIMATELY $145,184 OF THE CUSTOMER'S FUNDS TO THE CHECKING ACCOUNT. USING THE UNAUTHORIZED ATM CARD LINKED TO THE CHECKING ACCOUNT, KAPLANIDIS WITHDREW FROM THE CHECKING ACCOUNT THE FUNDS THAT HE HAD IMPROPERLY TRANSFERRED FROM THE VARIABLE ANNUITY. THE CUSTOMER CONTACTED THE FIRM BECAUSE HIS MONTHLY SYSTEMATIC DISTRIBUTIONS FROM HIS VARIABLE ANNUITY HAD SUDDENLY CEASED. THE FIRM PROMPTLY CONTACTED THE INSURANCE COMPANY AND LEARNED THAT 47 WITHDRAWALS TOTALING $145,184 WERE EXECUTED IN THE ACCOUNT DEPLETING THE FUNDS IN THE VARIABLE ANNUITY. THE FIRM ENTERED INTO A SETTLEMENT WITH THE CUSTOMER, PROVIDING A PAYMENT OF $20,107.37 DIRECTLY TO THE CUSTOMER, AND RESTORING $145,183.18 TO THE CUSTOMER'S ANNUITY. IN CONNECTION WITH HIS UNAUTHORIZED WITHDRAWALS FROM THE CUSTOMER'S ACCOUNT AND WITHDRAWAL OF FUNDS, KAPLANIDIS PLED GUILTY IN THE NEW YORK SUPREME COURT TO GRAND LARCENY IN THE THIRD DEGREE, A FELONY. KAPLANIDIS WAS ORDERED TO PAY FULL RESTITUTION TO HIS FIRM'S AFFILIATE. KAPLANIDIS FAILED TO RESPOND TO FINRA REQUESTS FOR INFORMATION.

Decision

Bar (Permanent)

All Capacities

Indefinite

DEFAULT DECISION RENDERED SEPTEMBER 27, 2012, WHEREIN KAPLANIDIS WAS FOUND TO CONVERTED CUSTOMER FUNDS, IN VIOLATION OF FINRA RULES 2010 AND 2150(A) AND FAILED TO RESPOND TO FINRA REQUESTS FOR INFORMATION, IN VIOLATION OF FINRA RULES 2010 AND 8210, THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. DECISION IS FINAL ON OCTOBER 25, 2012.