INVESTORS: Network 1 Financial Securities broker Eric Edward Nicolassy was suspended by FINRA following allegations that he excessively and unsuitably traded a senior customer’s account.
Eric Edward Nicolassy (CRD: 6244539) is registered as a broker with Network 1 Financial Securities, where he’s been employed since 2020. Nicolassy was previously registered as a broker with Woodstock Financial Group.
Nicolassy has four disclosures on his BrokerCheck report. Two disclosures relate to personal financial judgments/liens.
March 2022 Regulatory Judgment
Initiated By: FINRA
Allegations: Without admitting or denying the findings, Nicolassy consented to the sanctions and to the entry of findings that he excessively and unsuitably traded a senior customer’s account. The findings stated that although the customer’s account had an average month-end equity of $106,293, Nicolassy executed purchases with a total principal value of $5,138,740 which resulted in annualized turnover ratios of more than 23. Collectively, the trades Nicolassy executed caused the customer to pay $71,409.09 in commissions and $10,410 in trade costs and margin interest, which resulted in an annualized cost-to-equity ratio in excess of 76 percent – meaning the customer’s account would have to grow by more than 76 percent annually just to break even. As a result of Nicolassy’s unsuitable recommendations, the customer suffered more than $125,000 in losses. The findings also stated that Nicolassy exercised discretion in customers’ accounts without having obtained prior written authorization from the customers.
Resolution: Acceptance, Waiver & Consent(AWC)
Registration Capacities Affected: All Capacities
Duration: Four Months
Start Date: 4/18/2022
End Date: 8/17/2022
Sanctions: In light of Nicolassy’s financial status, no monetary fine has been imposed.
October 2021 Customer Dispute
Allegations: Suitability, Excessive Trading, Unauthorized Trading, Breach of Fiduciary Duty
Damage Amount Requested: $103,056.69
Broker Comment: I strongly deny the allegations set forth by or on behalf of the customer; I intend to defend the case vigorously and establish the clearly erroneous nature and/or falsehood of the allegations.
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