Eric Edward Nicolassy of Red Bank, New Jersey, a stockbroker formerly registered with Woodstock Financial Group Inc., has been suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Nicolassy engaged in unauthorized trades in customer accounts while he was employed by Woodstock Financial Group. Letter of Acceptance, Waiver, and Consent No. 2019063382401 (March 24, 2022).
According to the AWC, from August 2018 to July 2019, Nicolassy made unsuitable and excessive trades at Woodstock Financial Group. The AWC states that in an elderly investor’s account, Nicolassy recommended 137 trades during that period, and the customer drew no objection to Nicolassy’s advice.
The AWC states that the customer’s average month-end equity was $106,293.00. Nicolassy made purchases with a $5,138,740.00 principal value. That caused the customer to have a turnover rate exceeding 23.
The AWC also states that $10,410.00 in margin interest and trade costs were imposed. Nicolassy also caused the customer to pay $71,409.09 in commissions. This took the customer’s account to the point where the customer needed to see a 76 percent return on their investment to break even from Nicolassy’s costs. The AWC states that the customer sustained $125,000.00 in losses.
FINRA found that Nicolassy’s unsuitable recommendations showed that he violated FINRA Rules 2010 and 2111.
The AWC also states that Nicolassy made trades without written authorization in the accounts of four Woodstock Financial Group customers. Between May 29, 2019, and July 16, 2019, Nicolassy engaged in 18 discretionary transactions. Nicolassy violated FINRA Rules 2010 and 3260(b) for this reason.
Nicolassy is referenced in a customer initiated investment related FINRA securities arbitration claim where the customer requested $103,056.69 in damages supported by allegations of breach of fiduciary duty by Nicolassy during the time that he was associated with Woodstock Financial Group. FINRA Arbitration No. 21-02080 (October 4, 2021). The claim alleges that Nicolassy engaged in unsuitable, excessive, and unauthorized trades.
Nicolassy was registered with Woodstock Financial Group between September 21, 2016, and December 5, 2019. He has been employed by Network 1 Financial Securities since January 15, 2020.
