Arizona Corporation Commission discovers stockbroker scammed impaired client

PHOENIX — A Scottsdale stockbroker who defrauded an impaired client out of more than $450,000 was ordered to pay restitution, the Arizona Corporation Commission (ACC) announced Wednesday.

The ACC ordered David J. Volpe to pay restitution of $459,500 to a client with “cognitive impairment” for selling investment contracts and submitting “false invoices” in a now-defunct company. According to a press release, none of the security sales (worth more than $109,000) were approved by the ACC and were not on record at his employer, First Financial Equity Corporation (FFEC).

Additionally, Volpe sold an “unregistered note” to his client.

Volpe was also ordered to pay an administrative penalty of $65,000 for his actions.

In its investigation, the ACC also discovered that Volpe’s scam of this specific client occurred while he was registered at FFEC as a “securities salesman,” where he borrowed the client’s money.

It is estimated Volpe took a loan of at least $25,000 between February and March 2019 and invested it into a joint bank account with his wife, Amanda.

The case was initially filed in November 2019 and in 2021 the Maricopa County Superior Court assigned Volpe’s client a “permanent guardian.”

Volpe has been a licensed insurance producer since at least July 7, 2018, according to court documents.

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