Financial Advisor Zachary Taylor Suspended by FINRA for Violating Regulation Best Interest Rule

• September 4, 2025
• Oppenheimer & Co.

Zachary Ellis Taylor (CRD: 6074776)  was a registered broker and investment advisor.

Broker’s History

He entered the securities industry in 2012 and previously worked with Wells Fargo Advisors, LLC; Merrill Lynch, Pierce, Fenner & Smith Incorporated; Oppenheimer & Co. Inc.; and Saxony Securities, Inc.

Current and Past Allegations of Conduct Leading to Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August 2025, without admitting or denying the findings, Taylor consented to the sanctions and to the entry of findings that he willfully violated Rule 15/-1(a)(1) of the Securities Exchange Act of 1934 (Reg BI) by recommending that at least three senior customers with balanced allocation investment objectives and moderate risk tolerances invest in speculative options strategies.

According to FINRA, Taylor recommended that the customers sell puts, typically large numbers of puts in one underlying security at a time. As time passed, Taylor recommended that the customers sell more of these puts, putting at risk most of the principal value of their accounts. Taylor also began recommending increasingly risky puts, where the strike price was closer to the trading price.

In 2021 and 2022, the prices of the underlying stocks (four technology companies with relatively high price volatility) in which the customers had sold large numbers of puts fell below the strike price. As a result, the puts were assigned and the customers were required to purchase the securities at a price above their market value. The customers were then left with large, concentrated positions in a single technology stock that was worth significantly less than what they had just paid for it. For example, one customer was 71 years old and retired when he opened his accounts at Oppenheimer in the fall of 2020. Between September and November 2020, Taylor recommended that he liquidate most of his diversified holdings.

In 2021, Taylor recommended that this customer sell puts in a single tech security in his three accounts at Oppenheimer. The customer followed this recommendation and 17 of those put contracts were exercised at a strike price significantly higher than the market price. The customer

was required to buy 1,7004 shares of the tech security at a loss of approximately $104.58 per share less than the stock’s trading price as of the date of purchase. As a result of Taylor’s recommendations, by April 2022, approximately 82% of this retired customer’s holdings at Oppenheimer were concentrated in that single stock. When the accounts were transferred out of Oppenheimer, the customer had approximately $130,000 in realized and unrealized losses resulting from his sales of puts in the stock. Taylor’s recommendations were not in the customers’ best interest and were unsuitable for them based on their investment profiles. Taylor’s member firm has settled arbitrations with two of the customers for a total of $420,000.

As a result, Respondent consented to the imposition of the following sanctions:

• A nine-month suspension from associating with any FINRA member in all capacities.

For a copy of the FINRA Disciplinary Action Details, click here.

In addition, Taylor has been the subject of several other FINRA disclosures:

• June 2024—“ Bankruptcy.” Discharged.
• February 2024—“ Civil Judgment Lien in the amount of $9,653.90.”
• January 2024—“ Claimant asserts claims for breach of fiduciary duty, negligence, negligent supervision, breach of contract. breach of covenant of good faith and fair dealing, misrepresentation, unauthorized trading, as well as violations of FINRA rules and state securities and elder abuse law. 08/2020 – 05/2023.” The damage amount requested was $426,000.00 and the customer dispute settled for $170,000.00
• December 2023—“ Client alleges mismanagement of her account. September 2021-June 2023.” The customer dispute settled for $50,000.00
• September 2023—”Claimants assert claims for breach of contract, breach of fiduciary duty, fraud, negligence, misrepresentation, unjust enrichment, unauthorized trading as well as violations of FINRA rules and state securities and consumer protection law. From 06/2021 to 06/2023.” The customer dispute settled for $85,000.00
• May 2023—Discharged by Oppenheimer & Co. Inc., “Was unable to provide sufficient documentary evidence to support his contention that he had authority for all trades in a client’s account.”
• April 2022—“ Claimant alleges unauthorized trading, unsuitable investments, negligence, breach of fiduciary duty, breach of contract and lack of supervision relating to the conversion of his accounts from RIA accounts to brokerage accounts, options trading and the purchase and over concentration of ROKU stock. From 9/1/2020 – 10/7/2022.” The damage amount requested was $417,667.00 and the customer dispute settled for $250,000.00.
• October 1991—Criminal “ 245(A)(1) PC FORCE ADW NOT FIREARM GBI LIKELY.” Pled guilty.

For a copy of Zachary Taylor’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation. Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.