Gus Tsamos Faces 17-Month FINRA Suspension

Gus Tsamos (CRD #: 2782014) has been suspended by FINRA. This disclosure appears on his BrokerCheck record, accessed on November 8, 2024. Keep reading if you have questions regarding his alleged conduct. 

FINRA Suspension

In a Letter of Acceptance, Waiver & Consent (AWC) filed on October 8, 2024, Gus Tsamos consented to the entry of findings that he allegedly recommended a series of excessive and unsuitable trades in six clients’ accounts. These trades were allegedly also not in the clients’ best interests.

Two factors used to determine if trading is excessive are turnover rate and cost-to-equity ratio. Turnover rates over 6 and cost-to-equity ratios over 20% are considered signs of excessive trading.

The AWC alleged that Gus Tsamos exercised de facto control over these six clients’ accounts because they relied on his advice and recommendations. His trading between February 2016 and April 2022 allegedly resulted in annualized turnover rates of 10-21 and annualized cost-to-equity ratios of 38%-82%, and generated trading costs of $958,948.

His trading allegedly also resulted in $1.03 million in total losses.

The AWC concluded that this alleged misconduct constituted violations of Regulation Best Interest and FINRA Rules 2111 and 2010.

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2111

FINRA Rule 2111, a.k.a. The Suitability Rule, requires brokers to tailor their investment recommendations to suit investors’ needs. Trades must be quantitatively suitable, meaning the number of trades must suit an investor’s needs. Each trade comes with a transaction fee, so too many transactions will result in excessive fees for the investor. Excessive trading is also known as “churning.” 

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

Gus Tsamos consented to a 17-month suspension from associating with FINRA members. His suspension began on October 21, 2024, and will end on March 20, 2026.

You can read the full AWC here.

Previous FINRA Suspension 

On June 6, 2024, Gus Tsamos allegedly failed to comply with an arbitration award or settlement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance. 

The suspension continues until the required payment is made or discharged. 

Customer Disputes

There is a settled dispute dated January 28, 2020, alleging that Gust Tsamos engaged in misrepresentation. The dispute settled for $75,000.

FINRA Rule 2020 – Misrepresentation

FINRA Rule 2020 prohibits the misrepresentation of investments and omission of material facts. Material facts include information about an investment’s potential returns, as well as charges, expenses, and fees. Brokers must always disclose the risks associated with illiquid investments, such as early withdrawal fees. 

Tax Liens

From 2017-2019, Gus Tsamos incurred a total of $293,935.75 in tax liens.

Background Information 

Gus Tsamos has passed the following exams:

• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 
• Series 24 General Securities Representative Examination 

He was previously registered with 11 firms: 

• Spartan Capital Securities (CRD #: 146251) 
• Southeast Investments (CRD #: 43035) 
• Caldwell International Securities (CRD #: 104323) 
• Hunter Scott Financial (CRD #: 45559) 
• JP Turner & Company (CRD #: 43177)
• Millennium Securities Corporation (CRD#:31695)
• G.F.B. Securities (CRD#:36381)
• La Jolla Capital CORPORATION (CRD#:24341)
• Redstone Securities (CRD#:19628)
• Jaron Equities Corporation. (CRD#:5764)
• Investors Associates (CRD#:958)

Kurta Law Can Help 

If you have worked with Gus Tsamos and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email 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 that 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. Do not let securities fraud go unchecked. Start your recovery process today.