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Maxim Beliakov Suspended by FINRA Following Investor Allegation

Oct 25, 2021 AWC

Maxim Beliakov (CRD #: 5968432), a former broker and investment adviser registered with Garden State Securities, INC, is facing allegations of excessive and unsuitable trading, according to his BrokerCheck record, accessed on October 14, 2021. Investors who have questions about Maxim Beliakov's conduct as a broker should keep reading.

Regulatory Disclosure

According to an Acceptance, Waiver, and Consent agreement (AWC) dated August 16, 2021, Maxim Beliakov consented to the findings that he engaged in excessive and unsuitable trading in a customer’s account. 

Maxim Beliakov allegedly recommended frequent trading which resulted in an annualized cost-to-equity ratio of 221.56, meaning that the customer’s account would have to grow more than 221% annually to break even. A cost-to-equity ratio of over 20% is considered indicative of excessive trading. The customer allegedly paid over $173,000 in commissions.

The securities transactions recommended by Maxim Beliakov were reportedly excessive and unsuitable given the customer’s investment profile. As a result, Maxim Beliakov violated FINRA Rule 2111, regarding suitability and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.

You can read a copy of the AWC here.

FINRA Rule 2111 and 2010

FINRA Rule 2111 requires financial advisors to have a "reasonable basis" to believe that a recommended transaction or investment strategy is suitable for their client. It also requires that brokers only execute quantitatively suitable investments, which means that the number of investments suited the investor’s needs. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

A violation of FINRA Rule 2111  also constitutes a violation of FINRA Rule 2010, which requires registered representatives to observe high standards of commercial honor and just and equitable principles of trade. 

FINRA Suspension and Fine

As part of the terms of the AWC, Maxim Beliakov consented to a four-month suspension and a $5,000 fine. 

Maxim Beliakov Background Information

Maxim Beliakov 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 Principal Examination

Maxim Beliakov has worked with the following firms:

  • Garden State Securities (CRD #: 10083)
  • Woodstock Financial Group (CRD #: 38095)
  • Chelsea Financial Services (CRD #: 47770)

Kurta Law Can Help

If you suffered losses after working with Maxim Beliakov, 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.