Patrick Teutonico Suspended by FINRA Following Allegations that He Executed Excessive Trades
Patrick Teutonico (CRD #: 2875434), a broker registered with Network 1 Financial Securities, has been suspended by FINRA, according to his BrokerCheck record, accessed on June 23, 2022. Investors should note that this broker has 12 disclosures on his record – keep reading for more details.
On April 8, 2022, Patrick Teutonico entered into an Acceptance, Waiver and Consent agreement (AWC) in which he consented to the findings that he executed excessive trades.
Excessive Trading
Churning, another name for excessive trading, violates FINRA Rule 2111 – the “Suitability Rule.” The type of trade as well as the number of trades must suit the customer’s needs.
Each trade comes with a transaction fee, and an excessive number of trades generates fees that unfairly cut into trading profits. Investors who believe their losses were caused by excessive trading can pursue FINRA arbitration to recoup their losses.
FINRA considers a cost-to equity ratio above 20% or a turnover rate of six indicative of excessive trading.
From June 2018 to June 2019, Patrick Teutonico allegedly recommended 130 trades to Customer A, resulting in a turnover rate of 13 and a cost-to-equity ratio of more than 35%. This means the investments would have to grow by more than 35% to break even.
These trades generated approximately $42,092 in commissions and trading costs.
Sanctions
As part of the terms of the AWC, Patrick Teutonico consented to a three-month suspension and a restitution fee of $42,092. You can read a copy of the AWC here.
Arbitration Award
Another arbitration award from August 20, 2018, alleged that Patrick Teutonico violated FINRA Rule 2111. An arbitration panel granted damages of $169,254. You can read a copy of the award here.
Bankruptcy
There is a bankruptcy on his record from June 10, 2016.
Background Information
Patrick Teutonico has passed the following exams:
- Series 63 Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 General Securities Representative Examination
He is a registered broker in 28 states.
Patrick Teutonico has registered with the following firms:
- Network 1 Financial Securities (CRD #: 13577)
- Obsidian Financial Group (CRD #: 104255)
- QA3 Financial Corp (CRD #: 14754)
- A&F Financial Securities (CRD #: 44791)
- First Midwest Securities (CRD #: 21786)
- Gunnallen Financial (CRD #: 17609)
- National Securities Corporation (CRD #: 7569)
- Gruntal & Co. (CRD #: 372)
- Ryan Beck & Co. (CRD #: 3248)
- J. Nolan & Company (CRD #: 16465)
Kurta Law Can Help
If you worked with Patrick Teutonico 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.
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