What Did Your Brokerage Firm or Investment Adviser Do Wrong With GWG
Published On: January 13, 2017

According to a recent article in InvestmentNews, John W. Rafal was barred from the industry by the Financial Industry Regulatory Authority (FINRA). He allegedly concealed a referral fee from a client and tried to undermine the Securities and Exchange Commission’s investigation against him. The SEC fined him $577,297 in penalties for concealing that referral fee, as it is against securities laws. Rafal is the former president and chief executive of Essex Financial Services in Essex, Connecticut and obtained new client accounts in excess of $100 million from Peter D. Hershman, an attorney in Connecticut. Rafal agreed to pay Hershman $50,000 annually from advisor fees paid to Essex by a client, but Hershman never became a registered investment adviser. From 2011 until 2013, Rafal and Hershman disguised the payments as fake invoices for legal services and did not disclose them to the client. From May 2013 until March 2014, Rafal hid the investigation against him by the SEC from his clients. The SEC also alleged that Rafal misled the agency about additional payments he made to Hershman. Hershman was also barred from the industry. Please call our securities law firm today if you suffered losses with John W. Rafal and Essex Financial Services. We may be able to help you bring a claim against the firm to recover your investment losses.

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