Michael Raineri: Barred Seattle Broker Sentenced

Seattle Broker Michael Raineri Barred & Sentenced for Stealing $531K from Client

Michael Raineri Barred from Securities Industry, Featured by top securities fraud attorneys, The White Law Group

Seattle Broker Michael Raineri Sentenced for Wire Fraud

Former financial advisor Michael P. Raineri (CRD # 4817588), who previously worked with Cetera Advisors, KMS Financial Services, and Securities America (now part of Osaic), has been barred from the securities industry by FINRA and sentenced to 32 months in prison for wire fraud.

According to the U.S. Attorney’s Office in Seattle, Raineri, age 63, allegedly stole more than $531,000 from a client’s trust account over a six-year period. He pleaded guilty to wire fraud in June 2025 after being indicted in November 2024.

The Department of Justice alleged that Raineri misused his client’s trust by gaining access to blank checks, power of attorney, and even a key to the client’s apartment. Between 2016 and 2022, he allegedly transferred funds for personal expenses, including payments on a luxury car lease. Prosecutors stated that Raineri ingratiated himself with his victim, who inherited $2 million, and exploited that relationship for years.

FINRA’s Bar of Michael Raineri

In a Letter of Acceptance, Waiver and Consent (AWC), FINRA barred Raineri for the conversion of customer funds. Between August 2018 and August 2022, he allegedly received at least $135,000 in payments from a customer, far exceeding legitimate reimbursements.

• FINRA Rule 2150(a): Prohibits brokers from misusing customer funds.

• FINRA Rule 2010: Requires brokers to observe just and equitable principles of trade.

Michael Raineri – Employment History

According to FINRA BrokerCheck, Raineri’s registrations included:

• Securities America, Inc. (CRD #10205) — Seattle, WA | 11/06/2020 – 04/18/2023 (Firm later absorbed into Osaic)

• KMS Financial Services, Inc. (CRD #3866) — Seattle, WA | 04/24/2018 – 11/06/2020 (Also part of Osaic)

• Cetera Advisors LLC (CRD #10299) — Seattle, WA | 02/28/2012 – 04/25/2018

• Pacific West Securities, Inc. (CRD #6390) — Seattle, WA | 05/24/2006 – 02/28/2012

Raineri was reportedly discharged from Securities America in 2023 for policy violations, including being named as Power of Attorney on customer accounts and engaging in unapproved financial transactions.

FINRA BrokerCheck – Research Your Advisor

The FINRA BrokerCheck tool is a free online resource that allows investors to review an advisor’s regulatory record, employment history, and customer complaints. Before trusting a financial professional with your investments, it is important to verify their history through BrokerCheck.

Recovering Investment Losses with FINRA Attorneys

When brokers like Michael Raineri engage in misconduct, their brokerage firms—including Osaic and Cetera Advisors—may be held liable for failing to supervise them. Investors may be able to pursue recovery of losses through FINRA arbitration, which is generally faster and less expensive than traditional court litigation.

The securities attorneys at The White Law Group have represented hundreds of investors nationwide in claims involving broker fraud, misrepresentation, unsuitable investments, and conversion of funds.

If you suffered losses investing with Michael Raineri or another Osaic or Cetera broker, contact The White Law Group at (888) 637-5510 for a free consultation.

FAQs about Michael Raineri and Investor Recovery

1. Why was Michael Raineri barred from the securities industry?
FINRA barred Raineri after finding that he converted customer funds. Separately, he pleaded guilty to wire fraud in federal court after stealing more than $531,000 from a client’s trust account.

2. Can I recover losses if I invested with Michael Raineri?
Possibly. While Raineri may not be able to repay victims, his brokerage firms—such as Cetera Advisors and Osaic (formerly Securities America and KMS Financial Services)—may be held liable for failing to properly supervise him. Investors can pursue recovery through FINRA arbitration.

3. What should I do if I believe my advisor is misusing my funds?
Always request statements directly from your brokerage firm (not just your advisor), and review them carefully. If something appears suspicious, consult a qualified securities fraud attorney immediately to explore your recovery options.

The White Law Group, LLC is a national securities fraud and investor protection law firm with offices in Chicago and Seattle. Since 2010, the firm has handled more than 800 FINRA arbitration cases nationwide.

For more information, please visit www.whitesecuritieslaw.com