Maxim Beliakov of Red Bank New Jersey a stockbroker formerly registered with Woodstock Financial Group has been fined $5,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that he engaged in unsuitable and excessive trading in a Woodstock Financial Group customer’s account. Letter of Acceptance Waiver and Consent No. 2018060806602 (Aug. 16, 2021).
According to the AWC, Beliakov serviced and maintained control over the account of a customer who did not have significant investment experience and who relied heavily on Beliakov for guidance and direction on their investments. Beliakov controlled their account according to the regulator. After the customer established and funded their account at Woodstock Financial Group, it was excessively traded by Beliakov and another stockbroker at Woodstock Financial Group.
FINRA noted that a cost-to-equity ratio of more than 20 percent shows excessive trading and could be unsuitable given the customer’s investment objectives and financial circumstances. FINRA also noted that excessive trading could be evidenced through the stockbroker’s control over the customer’s account.
Quantitatively unsuitable trades were made by Beliakov between September of 2017 and August of 2018 in the customer’s Woodstock Financial Group account. The AWC stated that an annualized cost-to-equity ratio of 221.56 resulted from Beliakov’s trading. FINRA noted that the customer required a 221 percent return to avoid taking a loss. This is because of Beliakov’s imposition of $173,000.00 in charges during that time.
FINRA found that Beliakov made unsuitable and excessive trades in violation of FINRA Rules 2010 and 2111.
Beliakov’s registration with Woodstock Financial Group has been terminated as of December 2, 2019. Between November 7, 2019 and March 2, 2021, he was associated with Garden State Securities.
