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Eric Nicolassy Embroiled in Investor Dispute

Feb 28, 2022 Excessive Trading

Eric Nicolassy (CRD #:6244539), a broker registered with  Network 1 Financial Securities, is involved in an investor dispute according to his BrokerCheck record, accessed on February 2, 2022. 

Investor Allegations

On October 4, 2021, a dispute was filed against Eric Nicolassy. It alleged unsuitable investment recommendations, excessive trading, and unauthorized trading. The investor is seeking to recover $103,056.69一the dispute is still pending.

FINRA Rule 2111

“Suitability” is the term used to describe an ethical, enforceable standard for investments that financial professionals are bound to when dealing with clients. An investment is only considered "suitable" if it meets the suitability criteria outlined in FINRA Rule 2111

A broker must have exercised due diligence and have an adequate reason for believing that an investment will also be suitable or beneficial for the investor.

Excessive trading, which occurs when brokers execute trades simply for the sake of generating commissions for themselves, without any financial benefit for their investors. It is prohibited under FINRA Rule 2111, under "quantitative suitability." Quantitative suitability means the number of trades must fit the investor’s needs.

FINRA Rule 3250 and 2010

Unauthorized trading occurs when a broker executes securities transactions without authorization from their client. Unless an account has been approved for discretionary trading, a broker must always have authorization from an investor before executing any trades. This is in accordance with FINRA Rule 3260(b)

A broker executing unauthorized trades in a customer's account also violates FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade.

Tax Liens

Between 2018 and 2019, Eric Nicolassy was the subject of two tax liens amounting to $26,765.

Background Information

Eric Nicolassy has passed the following exams:

  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

Eric Nicolassy is a registered broker in 38 states.

Besides Network 1 Financial Securities, Eric Nicolassy has worked with the following firms:

  • Alexander Capital (CRD#:40077)
  • Woodstock Financial Group (CRD#:38095)       
  • International Assets Advisory (CRD#:10645)

Kurta Law Can Help

If you have worked with Eric Nicolassy and have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.