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Nicholas Giallourakis Allegedly Engaged in Fraud and FINRA Violations

Oct 31, 2022 Unsuitable Investments

Nicholas Giallourakis (CRD #: 4496285), a broker registered with Newbridge Securities, is named in a pending dispute, according to his BrokerCheck record, accessed on October 16, 2022. Investors may have also worked with him through Newbridge Financial Services Group. Read on to learn more about his conduct as a broker.

Investor Dispute

A dispute filed on July 5, 2022, named Nicholas Giallourakis in allegations of fraud, failure to supervise, violations of FINRA Rules 2210 and 2111, and breach of contract. This dispute is currently pending.

FINRA Rule 2210

FINRA Rule 2210 governs communications between FINRA members and the public. For example, firms are required to review potential communications to ensure they provide a sound basis for customers to evaluate investments.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately suit an investor’s financial goals. Brokers must consider the information in an investor’s profile, such as their risk tolerance, age, and tax status when making recommendations.

  • High-risk investments may be unsuitable due to their likelihood of losing money.
  • Illiquid investments can be difficult to sell in the short-term and tend to incur high fees when investors attempt to sell them too soon.
  • Excessive trading violates the need for quantitative suitability. This means that the overall number of trades executed must also be suitable for the client’s financial goals.
  • Investment strategies are also required to be suitable for the investor. For example, the level of risk involved in overconcentration of securities in a certain sector or stock may be unsuitable for some investors.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish systems of supervision in order to ensure their compliance with securities regulations. Firms must appoint supervisors and provide them with Written Supervisory Procedures (WSPs) to guide their work.

Background Information

Nicholas Giallourakis has passed the following exams:

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

Nicholas Giallourakis is a registered broker in 11 states and a registered investment adviser in Florida.

He has also worked for VSR Financial Services (CRD#:14503) and Raymond James & Associates (CRD#:705).

Kurta Law Can Help

If you worked with Nicholas Giallourakis 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.