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Eric Nicolassy $103K Complaint Against Sanctioned Red Bank Advisor
Network 1 Financial Securities broker Eric Nicolassy (CRD# 6244539) excessively and unsuitably traded a senior customer’s account, according to a recent enforcement action against him. Financial Industry Regulatory Authority records show that the Red Bank, New Jersey representative has been suspended by FINRA until August 17, 2022.
According to a Letter of Acceptance, Waiver, and Consent (No. 2019063382401) issued by FINRA in March 2022, Mr. Nicolassy was registered with Woodstock Financial Group when, between August 2018 and July 2019, he “excessively and unsuitably traded a senior customer’s account.” FINRA’s findings state that his trading in the account of his 83-year-old customer resulted in the customer paying “$71,409.09 in commissions and $10,410 in trade costs and margin interest,” while suffering losses exceeding $125,000. His allegedly excessive and unsuitable trades led to an annualized cost-to-equity ratio in the account of more than 76%, which, FINRA clarifies, indicates that the account “would have had to grow by more than 76 percent just to break even.” FINRA’s findings go on to allege that Mr. Nicolassy made unauthorized discretionary trades “on at least 18 occasions in four customer accounts,” including the 83-year-old in whose account he made unsuitable and excessive trades. His conduct constituted violations of multiple FINRA rules, the AWC Letter concludes. FINRA issued him a four-month suspension from associating with any member firm in any capacity, and it ordered him to pay partial restitution of $32,134.09.
Mr. Nicolassy’s BrokerCheck report discloses one investor complaint against him. Filed in October 2021, the complaint alleges that as a representative of Woodstock Financial Group, he recommended unsuitable investments, made excessive trades, engaged in unauthorized trading, and breached his fiduciary duty. The pending complaint alleges damages of $103,056.69.
In a statement on the pending complaint’s disclosure, Mr. Nicolassy “strongly” denied the allegations, writing that he intends to “defend the case vigorously and establish the clearly erroneous nature and/or falsehood of the allegations.”
According to the Financial Industry Regulatory Authority, Eric Nicolassy holds seven years of securities industry experience. He has been based in Red Bank, New Jersey as a broker with Network 1 Financial Securities since 2020, though he is under suspension from acting as a broker until August 17, 2022. His past registrations include Woodstock Financial Group (Red Bank, New Jersey; 2016-2019), Alexander Capital (Staten Island, New York; 2015-2016, 2015), Woodstock Financial Group (Staten Island, New York; 2015), and International Assets Advisory (Staten Island, New York; 2014). His credentials include the passage of three securities industry qualifying examinations: the Uniform Securities Agent State Law Examination, or Series 63; the General Securities Representative Examination, or Series 7; and the Securities Industry Essentials Examination, or SIE. (Information current as of August 3, 2022.)
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