Stifel Nicolaus Broker Edward Villanyi Faces $100,000 Complaint for Unauthorized Trading

A recently disclosed customer dispute alleges that Edward Villanyi liquidated a client’s investment without authorization and used the proceeds to purchase mutual funds. Unauthorized trading is a serious violation of industry rules and may entitle affected investors to financial recovery.

Who Is Edward Villanyi?

Edward “Ed” Villanyi has more than 30 years of experience in the securities industry. His recent employment history includes:

• Stifel, Nicolaus & Company, Inc.
  Indianapolis, Indiana (2022–Present)
• Merrill Lynch, Pierce, Fenner & Smith
  Indianapolis, Indiana (2009–2022)

The Allegation: Unauthorized Liquidation and Mutual Fund Losses

According to Mr. Villanyi’s FINRA BrokerCheck record, a pending customer complaint was filed in August 2025 alleging:

• The customer claims Mr. Villanyi liquidated an existing investment without prior authorization and reinvested the proceeds into two mutual funds
• Damages requested: $100,000
• Status: Pending

Why Unauthorized Trading Is a Serious Red Flag

Except in very limited circumstances involving properly documented discretionary accounts, brokers must obtain a client’s explicit permission before every trade.

FINRA rules governing this conduct include:

• FINRA Rule 3260, which prohibits brokers from exercising discretionary authority without prior written authorization
• FINRA Rule 2010, which requires brokers to observe high standards of commercial honor and just and equitable principles of trade

When a broker moves money without consent, investors may face unexpected tax consequences, excessive mutual fund commissions, and exposure to risks they never agreed to assume.

Is Stifel, Nicolaus & Company Liable?

Brokerage firms are required by law to maintain supervisory systems designed to monitor all trading activity.

If Stifel failed to detect or prevent unauthorized liquidations in accounts handled by Mr. Villanyi, the firm may be held financially liable for investor losses through a FINRA arbitration claim.

How Sonn Law Group Can Help

If you were a client of Edward Villanyi and noticed trades or liquidations in your account that you did not authorize, it is important to act quickly.

Sonn Law Group offers:

• A proven track record recovering millions for victims of unauthorized trading
• Contingency fee representation, meaning you pay nothing unless we recover funds
• Free case reviews, including a no-cost analysis of account statements to identify suspicious activity

Contact Sonn Law Group Today

FINRA arbitration claims are subject to strict statutes of limitation. Waiting too long could affect your ability to recover losses.

Contact Sonn Law Group Today
Phone: 833-912-3000
[Contact Us Now]