Jack Terzi Allegedly Engaged in Excessive Trading

Jack Terzi (CRD #: 7008502), a broker registered with Merrill Lynch, Pierce, Fenner & Smith, allegedly churned a client’s account, according to his BrokerCheck record, accessed on March 3, 2023. Read on to learn more about his alleged conduct as a broker.

Investor Dispute

In a pending dispute filed on December 15, 2022, an investor named Jack Terzi in allegations of unauthorized trading, excessive trading and other violations of suitability, the misrepresentation and omission of material facts, breach of contract, and negligence.

The client alleged that this misconduct occurred between November 2019 and December 2021. They seek $203,007 in damages.

FINRA Rule 3260

Unauthorized trading violates FINRA Rule 3260, which limits brokers to engaging in discretionary trading only in pre-authorized accounts. These accounts must be approved for discretionary trading by both the client and the firm.

FINRA 2020

FINRA Rule 2020 forbids the use of manipulative, deceptive, or otherwise unethical methods to influence investors’ decisions. Misrepresenting an investment’s potential risks, limitations, or other relevant information violates this rule. 

FINRA 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must consult the investor’s profile, which contains information about their tax status, age, and other investments.

When a broker executes an excessive number of trades, they generate trading fees and commissions that can severely reduce the client’s returns. This is considered quantitatively unsuitable trading and a violation of this rule.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rule 2010

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

What qualifies as broker negligence?

Many types of broker misconduct may qualify as negligence. Examples include unsuitable investment recommendations, excessive trading, and misrepresentation and omissions of material fact.

Investors who feel their losses are the result of broker negligence may be able to recover their funds by pursuing FINRA arbitration. 

Background Information

Jack Terzi has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Jack Terzi is a registered broker in 15 states and the District of Columbia. He is also a registered investment adviser in New York and Texas.

He previously worked for Aegis Capital Corporation (CRD#:15007).

Kurta Law Can Help

If you worked with Jack Terzi and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want 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.