Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Eric Edward Nicolassy (CRD # 6244539) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into excessive trading (churning), suitability and unauthorized trading.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Nicolassy.
Registration Background for Eric Nicolassy
Mr. Nicolassy first became registered in the securities industry in 2014. He is currently registered with Red Bank, NJ based Network 1 Financial Securities Inc. (CRD # 13577). His prior registrations include Woodstock Financial Group, Inc. (CRD # 38095) from September 2016 to December 2019, Alexander Capital, L.P. (CRD # 40077) from December October 2015 to September 2016 and Woodstock Financial Group, Inc. (CRD # 38905) from July 2015 to September 2015.
FINRA’s Allegations Against Eric Nicolassy
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated March 24, 2022 (No. 2019063382401), Mr. Nicolassy consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between August 2018 and July 2019, while associated with Woodstock Financial Group, [Mr.] Nicolassy engaged in excessive and unsuitable trading in the account of Customer A, an 83 year old retired real estate broker”;
- “Collectively, the trades [Mr.] Nicolassy executed caused Customer A to pay $71,409.09 in commissions and $10,410 in trade costs and margin interest, which resulted in an annualized cost-to-equity ratio in excess of 76 percent—meaning Customer A’s account would have had to grow by more than 76 percent annually just to break even”;
- “From May 29, 2019 to July 16, 2019, [Mr.] Nicolassy exercised discretion on at least 18 occasions in four customer accounts, including in the account of Customer A”;
- “None of the customers provided prior written authorization for [Mr.] Nicolassy to exercise discretion in their accounts”; and
- By virtue of his actions, Mr. Nicolassy violated of FINRA Rule 2111 regarding suitability, FINRA Rule 2010 regarding standards of commercial honor and principles of trade, and FINRA Rule 3260 regarding discretionary accounts.
FINRA Suspends Eric Nicolassy from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s March 24, 2022 AWC also indicates that Mr. Nicolassy consented to the following sanction(s):
- A four-month suspension from association with any FINRA member in all capacities; and
- Partial restitution in the amount of $32,134.09.
Eric Nicolassy Has A History of Securities Industry Customer Complaints
In addition to Eric Nicolassy being suspended by FINRA from the securities industry regarding excessive trading (churning), suitability and unauthorized trading, FINRA BrokerCheck for Mr. Nicolassy reveals that he has a history of customer complaints and/or customer-initiated arbitrations including but not necessarily limited to the following:
- On October 4, 2021 a customer-initiated arbitration was filed naming Mr. Nicolassy as a respondent regarding alleged actions that occurred while he was associated with Woodstock Financial Group, Inc. The customer’s allegations included suitability, excessive trading, unauthorized trading and breach of fiduciary duty. The customer further alleged damages in the amount of $103,056.69. The arbitration is currently pending.
If you or someone you know has or had a brokerage account with Eric Edward Nicolassy and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.