Former Registered Rep Barred for Defrauding Elderly Client

Posted on April 9th, 2015 at 9:41 AM
Former Registered Rep Barred for Defrauding Elderly Client

From the Desk of Jim Eccleston at Eccleston Law LLC:

Ronald Paul Rafaloff, a former broker from Liberty Partners Financial Specialist, LLC, has been barred by FINRA and ordered by the New Jersey Bureau of Securities to pay $200,000 in civil penalties for defrauding his elderly client.

Rafaloff used $405,000 invested by the client (his sole client in fact) to fund companies that he founded and controlled. To orchestrate his fraud and to earn the trust of his client, Rafaloff befriended the client– offering to run errands for her, taking her to dinner and accompanying her to medical appointments – and promised her “capital appreciation” of 30% to 40% with personal guarantees on the securities.

The Bureau’s investigation found that Rafaloff committed multiple violations of the state’s Uniform Securities Law, including filing a false application with the Bureau by not disclosing his business interests, making untrue statements or omitting material facts to the victim, and engaging in dishonest or unethical business practices.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Ronald Paul Rafaloof, FINRA, SEC, James Eccleston

Return to Archive



You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.


September 20, 2023
SEC Orders Legendary Capital Founder and REIT Advisors to Pay Nearly $5 Million

Corey Maple, co-founder of non-traded REIT sponsor Legendary Capital, has agreed to a $100,000 civil penalty to settle charges brought by the Securities and Exchange Commission (SEC).

September 19, 2023
Reg BI Violations Lead to FINRA's Fine on Another Broker-Dealer

The Financial Industry Regulatory Authority (FINRA) has fined and censured broker-dealer Network 1 Financial Securities and its chief compliance officer for violating Regulation Best Interest (Reg BI).

September 18, 2023
Troubles at an Arizona Park Funded by Municipal Bonds Are a Warning to Investors

The recent financial troubles at a sports arena in Mesa, Arizona, demonstrate that not all municipal bonds are equally safe.