Former Network 1 Financial Securities Inc. Client Wins FINRA Arbitration for $277,000
Posted on Tuesday, December 3rd, 2019 at 3:23 pm
In September 2019, a former client of Network 1 Financial Securities Inc. won an award in a FINRA arbitration for compensatory damages for $169,354 plus 7% interest per annum, $79,440 in attorney’s fees, $25,000 in expert witness fees, $2,650 in costs, and a $300 non-refundable filing fee for investment losses. The investors were clients of financial advisors Patrick Teutonico (CRD# 2875434) and Wesley Clinton (CRD# 4628274).
The causes of action included violation of the Georgia Securities Act and Other Blue Sky statutes; violations of federal securities laws; common law fraud; unsuitability; unauthorized trading; churning; misrepresentations; breach of fiduciary duty; negligence; breach of contract; failure to supervise; violations of state, federal, FINRA, NASD and NYSE rules and regulations, including but not limited to unsuitability and unauthorized activity; principles of agency, vicarious liability, respondeat superior and control person liability; and general equitable principles that apply in FINRA arbitrations. The causes of action relate to various investments, including but not limited to Alitair Pharmaceuticals, Inc. and GB Sciences, as well as an alleged overall trading pattern in Claimant’s account. The FINRA arbitration hearing was conducted in Atlanta, Georgia.
Teutonico has been registered with Network 1 Financial Securities Inc. in Seaford, New York since 2012.
In March 2015, FINRA sanctioned Teutonico to a $5,000 civil and administrative penalty and fine and suspended him for 15 business days after he consented to the sanctions and to the entry of findings that he effected unauthorized transactions as first trades in newly opened customer accounts for which he was the broker of record. The findings stated that each of the unauthorized transactions was cancelled by Teutonico’s member firm without losses to the customers and the accounts were closed.
Teutonico has also been the subject of seven additional customer complaints between 2006 and 2019, according to his CRD report. Recent complaints are regarding:
September 2019. “Breach of Fiduciary Duty, Breach of Contract, Negligent Supervision.” The customer is seeking $125,000 in this pending customer complaint.
November 2016. “Breach of fiduciary duty, misrepresentation, breach of contract.” The customer is seeking $150,000 in this pending customer complaint.
Clinton has been registered with Network 1 Financial Securities Inc. in Seaford, New York since 2012. Clinton has also been the subject of seven additional customer complaints between 2006 and 2018, according to his CRD report. Recent complaints are regarding:
January 2017. “Suitability.” The customer sought $50,000 in damages and the case was settled for $11,750.
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, Network 1 Financial Securities Inc. may be liable for investment or other losses suffered by its 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.