Former Wells Fargo Clearing Services Broker Apostolos Pitsironis Investment Losses
Posted on Wednesday, October 16th, 2019 at 10:28 am
Did you suffer investment losses due to recommendations by former Wells Fargo Clearing Services broker Apostolos Pitsironis (CRD# 2804907)?
Pitsironis was registered with Janney Montgomery Scott LLC in Melville, New York from December 2018 to June 2019, when he was terminated regarding, “FA was discharged after an internal investigation uncovered that the FA transferred funds via unauthorized ACHs from a client’s account to a third party bank account owned and controlled by the FA.” Previously, Pitsironis was registered with Wells Fargo Clearing Services, LLC in Hauppauge, New York from 2012 to 2018.
In February 2021, the Department of Justice of the Eastern District of New York revealed unsealed documents related to the criminal complaint against Pitsironis, who allegedly “defrauded his former clients of more than $400,000 that he used to pay his personal debts and expenses, including casino gambling debts and credit card bills.” Pitsironis was also arrested related to these charges. If convicted, Pitsironis faces up to 20 years in prison.
In September 2019, FINRA barred Pitsironis after he consented to the sanction and to the entry of findings that he converted $411,000 in customer funds. The findings stated that Pitsironis electronically transmitted the $411,000 in cash from a customer’s securities account at his member firm to a bank account he controlled through automated clearing-house transfers, without the customer’s knowledge or consent. Upon learning of Pitsironis’ actions, the firm made the customer whole.
Pitsironis has been the subject of two customer complaints in 2019, according to his CRD report:
February 2020. “Client alleges that the Financial Advisor took a loan from the client and failed to repay the borrowed amount and interest. Client demanded that the Firm repay the loan on behalf of the Financial Advisor. March 25, 2019 through November 4, 2019.” The customer sought $100,000 in damages and the case was settled for $30,000.
December 2019. “Client complained that funds loaned to the financial advisor, with a commitment the funds would be timely repaid, have yet to be paid back. (11/28/2017-12/2/2019).” The customer sought $123,974.90 in damages and the case was settled for $125,100.
November 2019. “Clients verbally complained that funds loaned to the financial advisor have only been partially paid back. (2/8/2017-11/18/2019).” The customer sought $43,000 in damages and the case was settled for $48,800.
October 2019. “Client complained that funds loaned to the financial advisor have only been partially paid back. (4/26/2017-10/31/2019).” The case was settled for $115,000.
September 2019. “Client verbally complained that funds loaned to the financial advisor from his IRA, with a commitment the funds would timely be restored to avoid any taxes, have only been partially paid back. (1/29/2018-9/12/2019).” The customer sought $30,000 in damages and the case was settled for $24,031.
June 2019. “Client complains that funds loaned to the financial advisor from his IRA, with a commitment the funds would timely be restored to avoid incurring tax penalties, have been misappropriated and yet to be paid back. (2/9/2018-8/23/2018).” The customer sought $22,000 in damages and the case was settled for $26,840.
June 2019. “Client alleged that Financial Advisor transferred assets from their account to a third party bank account not in the clients’ name. Allegation Period 05/02/2019 to 06/11/2019.” The case was settled for $411,000.
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, Wells Fargo Clearing Services may be liable for investment or other losses suffered by Pitsironis’ customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and 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.