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Written by 2:47 pm Blog, Current Investigations

John Terzis, LPL Advisor, Barred from Securities Industry 

John Terzis, LPL Advisor, Barred from Securities Industry fetured by top securities fraud attorneys, the White Law Group

John Terzis Allegedly Borrowed $200,000 from a Customer 

According to a Letter of Acceptance Waiver and Consent on December 23, 2022, the Financial Industry Regulatory Authority (FINRA) has barred financial advisor John Nicholas Terzis (CRD #1805020) from associating with any FINRA member at any time after his member firm reportedly dismissed him for “failing to timely disclose a loan arrangement with a customer of the firm.” 

In December 2019, according to a ten-year written promissory note, Terzis allegedly borrowed $200,000 from one of his customers, a 69-year-old senior, who had health issues.  

Terzis purportedly assisted the customer with transferring funds to her personal bank account, in order to facilitate the loan. Between February 2020 and December 2021, Terzis reportedly made monthly payments on the loan, but ceased making payments afterwards. Given his financial circumstances at the time he borrowed the money, Terzis did not have a reasonable expectation of being able to repay the loan in full, according to FINRA. This matter reportedly originated from a Form U4 amendment, which disclosed that the customer complained about Terzis to the firm. 

FINRA Rule 3240 prohibits registered persons from borrowing money from their customers unless the registered rep’s member firm has written procedures permitting borrowing from customers and the borrowing arrangement meets at least one of five circumstances in the rule. Even if these requirements are satisfied, the registered representative must obtain prior written approval from the member firm. 

According to his FINRA BrokerReport, Terzis was reportedly registered with LPL Financial in Skokie, Illinois from 2008 until March 11, 2022. He reportedly has two customer complaints on his record. 

Potential Lawsuits to Recover Financial Losses          

The White Law Group is investigating potential securities fraud lawsuits regarding the liability that Terzis’ employers may have for failure to properly supervise him.   

When brokers and registered investment advisors violate securities laws, such as churning accounts or making unsuitable investment recommendations, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.            

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.  We represent investors in all 50 states including Illinois. Our attorneys have recovered millions of dollars from many brokerage firms in the past.            

If you are concerned about your investments with John Terzis, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.             

For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.     

 

Tags: , , , , , , Last modified: December 27, 2022