PHOENIX — A Scottsdale stockbroker who defrauded a cognitively impaired client out of more than $450,000 has been ordered to pay restitution, the Arizona Corporation Commission (ACC) announced Wednesday.
David J. Volpe was found to have illegally sold investment contracts, submitted false invoices, and misled his client while working for First Financial Equity Corporation (FFEC). None of the securities transactions—totaling over $109,000—were approved by the ACC or reported to his employer. Additionally, he sold an unregistered note to his client.
Fraudulent Loans and Financial Misconduct
The investigation also revealed that while registered as a securities salesman at FFEC, Volpe borrowed at least $25,000from his client between February and March 2019. Court records show that he funneled the funds into a joint bank account with his wife, Amanda.
The case was first filed in November 2019, and by 2021, the Maricopa County Superior Court had assigned the victim a permanent guardian due to their cognitive impairment.
Financial Penalties and Restitution
Volpe was ordered to repay $459,500 in restitution and fined $65,000 in administrative penalties. Despite his fraudulent actions, court documents confirm that Volpe has remained a licensed insurance producer since at least July 7, 2018.
