← Broker database 2025-06-09
Sotirios Pappas Suspended Six Months for Failing to Disclose Felony Charge and Judgments
According to FINRA, Sotirios Pappas was suspended from association with any FINRA member in all capacities for six months for failing to disclose required information on his Form U4.
The findings revealed that a Greek civil court issued three judgments totaling over 700,000 euros against Pappas in a lawsuit brought by one of his securities customers, which Pappas never satisfied. Pappas was later charged with one count of fraud involving investments, a felony, in a Greek criminal court.
Despite these significant events, Pappas failed to disclose the judgments and the felony charge to his member firm, even after an American court recognized the judgments. In light of Pappas' financial status, no monetary sanction was imposed.
Form U4 disclosure requirements exist to ensure that customers and firms have access to material information about the background of registered representatives. Unsatisfied judgments and felony charges are precisely the types of information that investors would want to know when deciding whether to entrust their investments to a particular individual.
The failure to disclose such significant matters, particularly those arising from a lawsuit by a securities customer, represents a serious violation of disclosure obligations. These requirements are not mere formalities; they are designed to protect investors by ensuring transparency about the backgrounds of those who handle their money.
Judgments exceeding 700,000 euros from a customer lawsuit suggest significant investor harm may have occurred. The subsequent felony charge for investment fraud compounds these concerns.
The suspension is in effect from June 16, 2025, through December 15, 2025. Investors should be aware that they can check the disclosure history of any broker using FINRA's BrokerCheck tool, which provides information about customer complaints, regulatory actions, and other important background information.