- August 11, 2020
- Network 1 Financial Securities
Patrick Teutonico (CRD # 2875434) is a Financial Advisor at Network 1 Financial Securities Inc. in Seaford, NY. Patrick Teutonico has been in the securities industry since 1997 and previously worked at nine different brokerage firms including FINRA expelled firm Obsidian Financial Group, LLC (2010-2012), QA3 Financial Corp (2010), A & F Financial Securities, Inc. (92008-2010), and First Midwest Securities, Inc. (2008-2010).
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Patrick Teutonico has been the subject of eight (8) customer complaints during his career, alleging sales practice misconduct:
• September 2019—”Breach of Fiduciary Duty, Breach of Contract, Negligent Supervision.” Alleged damages are $125,000 and the matter remains pending.
• August 2018—”Suitability, failure to supervise.” The matter went to a final arbitration hearing and the panel awarded $169,354.
• November 2016—”Breach of fiduciary duty, misrepresentation, breach of contract.” Alleged damages were $150,000. The matter was withdrawn.
• November 2015—”Excessive Trading.” The matter settled for $35,000.
• December 2014—”CHURNING, UNSUITABLITY, UNAUTHORIZED SHORT TRADING.” The matter went to a final hearing and the arbitrators awarded $152,299.
• September 2006—”CLIENT ALLEGED SUITABILITY OF TRADES.” The matter settled for $4,000.
• September 2006—” ALLEGATIONS OF POOR PERFORMANCE.” The matter was closed without action.
• July 2006—”FAILURE TO FOLLOW INSTRUCTIONS.” The matter was closed without action.
In addition to the customer complaints above, Patrick Teutonico was suspended by FINRA for 15 days and fined $5,000 by FINRA on March 27, 2015. According to FINRA “WITHOUT ADMITTING OR DENYING THE FINDINGS, TEUTONICO CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT HE EFFECTED UNAUTHORIZED TRANSACTIONS AS FIRST TRADES IN NEWLY OPENED CUSTOMER ACCOUNTS FOR WHICH HE WAS THE BROKER OF RECORD. THE FINDINGS STATED THAT EACH OF THE UNAUTHORIZED TRANSACTIONS WAS CANCELLED BY TEUTONICO’S MEMBER FIRM WITHOUT LOSSES TO THE CUSTOMERS AND THE ACCOUNTS WERE CLOSED.”
For a copy of Patrick Teutonico’s CRD, click https://brokercheck.finra.org/individual/summary/2875434#disclosuresSection
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.
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.
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:
• Other investments
• Financial situation and needs
• Tax status
• Investment objectives
• Time horizon
• Liquidity needs
• Risk tolerance
• Any other information disclosed by the customer
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 firstname.lastname@example.org.