Erez Law is currently investigating former Spartan Capital Securities, LLC broker Terry Tzagarakis (CRD# 2796055) regarding stock losses. He was registered with Arive Capital Markets in Bay Ridge, New York, from May 2020 to January 2021. Previously, he was registered with Worden Capital Management LLC in New York, New York, from March to May 2020 and with Spartan Capital Securities, LLC in New York, New York, from 2013 to 2020.
In January 2021, FINRA suspended Terry Tzagarakis for three months and fined him $5,000 after he, “Without admitting or denying the findings, Tzagarakis consented to the sanctions and to the entry of findings that he willfully failed to timely amend his Form U4 to disclose outstanding federal tax liens, and an outstanding New York State tax lien. The findings stated that one of the federal tax liens was disclosed approximately five months late, while the other federal and state tax liens were disclosed approximately two years after being filed.”
In October 2022, FINRA sanctioned him to pay a $10,000 civil and administrative penalty and fine, as well as $246,780 in restitution, after he “consented to the sanctions and to the entry of findings that he excessively traded in customer accounts.” FINRA found that he “engaged in quantitatively unsuitable trading in customer accounts. Tzagarakis recommended high frequency trading in the accounts, and his customers routinely followed his recommendations.”
In September 2023, FINRA suspended him indefinitely after he “failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.”
Terry Tzagarakis Faces $6 Million-Plus Customer Complaint
He has been the subject of eight customer complaints between 2001 and 2021, with two of these complaints being denied, according to his CRD report. The most recent complaint is regarding:
December 2021. “Tzagarakis was named in a customer complaint that asserted the following causes of action: churning for commissions and quantitative unsuitability (fraud) in violation of Rules 2111 and Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b5; qualitative and quantitative unsuitability (Rule 2111); failure to supervise and negligent supervision (Rule 3010); breach of fiduciary contract and implied covenant of good faith and fair dealing; negligent misrepresentation and omissions; standards of commercial honor and principles of trade (Rule 2010); and unauthorized trading and the exercise of discretion without having written authority.” The customer is seeking $1,564,987.73 in damages.
September 2018. “Allegations of Churning, most investments were not suitable and most were not authorized.” The customer is seeking $6,645,956 in damages, and the case is currently pending. The complaint occurred while Terry Tzagarakis was registered with Spartan Capital Securities, LLC, and pertained to common and preferred stocks.
September 2018. “Allegations: of Churning, most investments were not suitable and most were not authorized.” The customer sought $1,082,641 in damages, and the case was settled for $30,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Spartan Capital Securities, LLC may be liable for investment or other losses suffered by Terry Tzagarakis’ customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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