Last Updated: February 2025 (Morristown, NJ)
National securities fraud lawyers at Patil Law P.C. are investigating M Holdings Securities, Inc. broker Thomas C. Rapp (CRD #1792438) regarding allegations of sales practice violations in the sale of a universal life insurance policy. The investigation stems from a recently filed $1.2 million customer lawsuit alleging serious misconduct in insurance policy disclosures.
Critical Insights About Morristown Financial Advisor Thomas C. Rapp
- Advisor Name: Thomas Christopher Rapp
- CRD: 1792438
- Location: Morristown, NJ
- Current Employer: M Holdings Securities, Inc.
- Classification: Registered Representative & Investment Adviser Representative
- Primary Location: 67 East Park Place, Suite 750, Morristown, NJ 07960
- Can Thomas Rapp be sued in FINRA arbitration: Yes
- Customer Disputes: One pending complaint
- Current Registrations: Licensed in 20 states
- Years of Experience: Since 1988
- Previous Employers: 1717 Capital Management Company (2002-2004), Pruco Securities Corporation (1988-1995)
- Professional Qualifications: Series 6, 7, 63, 65 licenses, Chartered Financial Consultant
- Business Name: Greenberg & Rapp Financial Group, Inc.
- Current Status: Active with M Holdings Securities
Details Of Current Investigation
A customer complaint filed in December 2024 alleges:
- Failure to exercise reasonable care and diligence in insurance policy sales
- Inadequate disclosure of policy characteristics and costs
- Misrepresentation of universal life insurance policy features
- Policy transaction occurred in October 2021
- Damages alleged: $1,234,482.59
- Case pending in Superior Court of New Jersey (Morris County)
Analysis Of Alleged Misconduct
The allegations raise serious concerns about:
- Insurance product disclosure practices
- Due diligence procedures
- Client communication standards
- Policy cost transparency
- Sales practice compliance
- Supervision of insurance transactions
- Fiduciary duty obligations
Regulatory Framework And Investor Protection
SEC Regulation Best Interest Requirements:
- Full disclosure of material facts
- Clear communication of costs and fees
- Transparent product features
- Documentation of client understanding
- Adequate risk disclosure
FINRA Rules And Their Significance
FINRA Rule 2010 mandates:
- High standards of commercial honor
- Fair dealing with customers
- Complete disclosure of material facts
- Accurate representation of products
- Client best interest practices
Professional Background
Mr. Rapp’s career spans over 35 years in the financial services industry, including:
- Entry into securities industry in 1988
- Multiple state insurance and securities licenses
- Investment adviser registration in numerous states
- Chartered Financial Consultant designation
- Current position at M Holdings Securities since 2004
Red Flags For Investors
- Pending litigation alleging significant damages
- Insurance sales practice concerns
- Disclosure adequacy questions
- Policy cost transparency issues
- Client communication concerns
- Recent misconduct allegations
Implications For Current And Former Clients
Current and former clients should:
- Review all insurance policy documentation
- Verify policy features and costs
- Examine premium calculations
- Check disclosure acknowledgments
- Monitor policy performance
- Document all communications
- Review policy illustrations
- Assess financial objectives alignment
Patil Law P.C. Will Help You Recover Your Investment Losses
If you purchased a universal life insurance policy or other insurance products through Thomas Rapp, please contact Attorney Patil online or call (800) 950-6553 for a free initial consultation. Our securities fraud attorneys work on a contingency fee basis, meaning we only get paid if we help you recover money.
