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Terrence Reagan Named in Pending Civil Complaint

Terrence Reagan (CRD #: 2672751), a broker formerly registered with Network 1 Financial Securities, is involved in a pending lawsuit, according to his BrokerCheck record, accessed on February 27, 2023. Read on if you have questions about his alleged conduct as a broker.

Pending Civil Complaint

On January 12, 2023, the U.S. District Court of the Southern District of New York filed a complaint against Terrence Reagan and Nathaniel Clay alleging that they made unsuitable recommendations to clients and violated federal antifraud provisions while acting as brokers at branch offices of their brokerage firm (“Broker-Dealer A”).

The complaint alleges that, from November 2015 to January 2019, Terrence Reagan and Nathaniel Clay recommended high-cost, in-and-out trading to at least eight clients. They allegedly did not have a reasonable basis to believe these recommendations could be suitable for an investor.

These clients allegedly experienced losses exceeding $739,000, of which more than $690,000 allegedly consisted of trading fees and commissions. Terrence Reagan and Nathaniel Clay allegedly received approximately $150,898 in commissions from these trades.

Additionally, the complaint alleges that Terrence Reagan violated federal antifraud provisions through their knowledge or reckless disregard for the fact that his recommendations were unsuitable. He allegedly also made material misrepresentations and omissions in relation to these recommendations.

Further, the complaint alleges that, after Terrence Reagan left Broker-Dealer A and joined Broker-Dealer B, one of his clients opened an account at this new firm. Terrence Reagan allegedly continued to make unsuitable and fraudulent trading recommendations. The client allegedly experienced approximately $28,692.65 in losses and $48,564.89 in trading fees and commissions, with Terrence Reagan allegedly receiving $24,000 in commissions.

The complaint alleges that Terrence Reagan and Nathaniel Clay violated and are otherwise liable for violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. This complaint is currently pending.

The Securities Act of 1933

Section 17(a) of the Securities Act of 1933 bans the use of deceptive and fraudulent schemes in the securities business. It specifically bans false or misleading statements and the omission of material facts relating to securities.

The Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 bans the use of manipulative, deceptive, and otherwise fraudulent practices in the securities business. Rule 10b-5 specifically prohibits false statements and omissions of fact that mislead investors.

Resignation from National Securities Corporation

On December 4, 2015, Terrence Reagan was permitted to resign from National Securities Corporation allegedly while under investigation by the firm for possible violations of Regulation S-P and/or the removal of proprietary property belonging to a branch office.

Regulation S-P

Regulation S-P requires firms to protect investors’ personal information. Among other things, it restricts firms from disclosing client information to unaffiliated third parties without proper disclosure.

Background Information

Terrence Reagan has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • Series 79TO – Investment Banking Registered Representative Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination 

He previously worked for the following firms:

  • Network 1 Financial Securities (CRD#:13577)
  • Arive Capital Markets (CRD#:8060)
  • Laidlaw & Company (UK) (CRD#:119037)
  • National Securities Corporation (CRD#:7569)
  • J.P. Turner & Company (CRD#:43177)
  • Morgan Stanley Smith Barney (CRD#:149777)
  • Morgan Stanley & Company (CRD#:8209)
  • Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
  • First Empire Securities (CRD#:15129)
  • GunnAllen Financial (CRD#:17609)
  • J.P. Turner & Company (CRD#:43177)
  • Royce Investment Group (CRD#:10494)

Kurta Law Can Help

If you worked with Terrence Reagan and you have concerns about your investments, contact a New York investment fraud lawyer today for a free case evaluation. Call (877) 600-0098 or email   

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.