INVESTORS: Former Morgan Stanley broker Nikolay Zotenko was suspended by FINRA for providing misleading and unwarranted statements to investors about a private placement.

Nikolay Zotenko (CRD#: 6334022) was registered as a broker with Morgan Stanley from 2015 until 2021. Zotenko does not have any other securities industry experience.

Zotenko has two disclosures on his BrokerCheck report. 

May 2022 Regulatory Judgment

Status: Final

Initiated By: FINRA

Allegations: Without admitting or denying the findings, Zotenko consented to the sanctions and to the entry of findings that he sent emails describing an investment opportunity through his firm email account to over 600 prospective customers, without submitting the content of these retail communications approval from his member firm. The findings stated that the communications violated the content standards for member communications with the public because they contained statements that were misleading and unwarranted. In addition, the communications lacked balance and failed to provide a sound basis to evaluate the private placement investment. After sending the communications without firm approval, Zotenko submitted the content of the communications for approval by the firm. The content of the communications he submitted for approval was substantively the same as the communications he had already sent. The firm denied approval of the communications and informed Zotenko that the content of the communications contained several issues, including impermissible promissory statements. Despite the firm’s denial, Zotenko sent the communications using the firm’s internal system to approximately 550 additional prospective customers. In order to circumvent the system’s restrictions on unapproved communications, Zotenko falsely affirmed in the firm’s system that he did not intend to send the campaign to more than 25 recipients. However, Zotenko sent the communications in multiple separate batches to 25 recipients at a time – each time falsely indicating that the messages were intended for no more than 25 recipients. The communications also indicated that Zotenko’s colleague was the sender notwithstanding that Zotenko sent all of the emails through the firm’s system. Zotenko obtained his colleague’s permission to send the emails using his name, but the colleague was not aware Zotenko entered false information into the firm’s system or that the firm had previously denied approval of the proposed content of the communications.

Resolution: Acceptance, Waiver & Consent (AWC)

Sanctions: Civil and Administrative Penalty(ies)/Fine(s)

Amount: $10,000.00

Sanctions: Suspension

Registration Capacities Affected: All Capacities

Duration: One Year

Start Date: 5/16/2022

End Date: 5/15/2023

April 2021 Employment Separation After Allegations

Firm Name: Morgan Stanley Smith Barney, LLC

Termination Type: Discharged

Allegations: Concerns that the representative sent email to many client prospects with content about an investment opportunity, after he had sought approval for the content of the email and not received it, and took steps to avoid further review of the email by the Firm.

If you have any information about Nikolay Zotenko that you would like to share or discuss, please call our firm for a confidential consultation. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form. 

 

Sonn Law Group is investigating claims regarding Joel Eziekel Blum (CRD #4905379, Goshen, New York). Blum recently submitted an AWC in which he was fined $10,000 and suspended from association with any FINRA member in any capacity for 20 days. See FINRA Case #2014040186601. Blum was associated with Merrill Lynch from May 2008 until his termination in February 2014. Blum has been associated with Ameriprise Financial Services, Inc., since February 2014. The Form U-5 filed by Merrill Lynch to terminate Blum's registration states that he was discharged for "conduct including failure to contact clients in advance of entering orders in non-discretionary accounts and mismarking order tickets as unsolicited." FINRA found that Blum executed discretionary transactions in customer accounts without written authorization to do so. In addition, Blum mismarked order tickets in connection with these transactions, inaccurately indicating that the trades were unsolicited, according to FINRA. In entering into the AWC, Blum neither admitted or denied FINRA's findings. Pursuant to FINRA Rules, member firms are responsible for supervising a broker's activities during the time the broker is registered with the firm. Therefore, Ameriprise or Merrill Lynch may be liable for investment or other losses suffered by Blum's customers. If you were a client of Ameriprise, Merrill Lynch, or Blum, and have suffered investment losses or financial irregularities, please contact Sonn Law Group to explore your legal options. Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 844-689-5754 or complete our "contact form."
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