Patrick Nicholas Teutonico of Seaford, New York, a stockbroker currently registered with Network 1 Financial Securities, has been suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Teutonico made excessive and unsuitable trades during the time that he was associated with Network 1 Financial Securities. Letter of Acceptance, Waiver, and Consent No. 2019061956701 (April 8, 2022).
According to the AWC, from July of 2018 to June of 2019, excessive and unsuitable trades were made by Teutonico in a customer’s account. The AWC states that Teutonico advised the customer to agree to 130 trades. The average monthly equity in the customer’s account was $94,000.00, but Teutonico had the customer pay trading costs and commissions totaling $42,092.00. The AWC states that the customer’s account contained an annualized cost-to-equity ratio exceeding 35 percent and an annualized turnover rate of 13. FINRA states that Teutonico made unsuitable recommendations, violating Rules 2010 and 2111.
FINRA Public Disclosure shows that Teutonico has been identified in eight customer initiated investment related disputes concerning allegations of his activities while employed by securities broker dealers, including Network 1 Financial Securities, Obsidian Financial Group, First Midwest Securities, and GunnAllen Financial Group. Teutonico is identified in a customer initiated investment related FINRA securities arbitration claim in which the customer was awarded $152,298.83 in damages, as Teutonico was found liable on the customer’s claims of sales practice violations. FINRA Arbitration No. 15-00180 (April 7, 2016). The Statement of Claim alleges failure to supervise, misrepresentation, breach of fiduciary duty, breach of contract, churning, negligence, and unsuitable trading of stocks which collectively resulted in losses.
Teutonico is also the subject of a customer initiated investment related FINRA securities arbitration claim where the customer sought $150,000.00 in damages based upon accusations of breach of contract, misrepresentation, and breach of fiduciary duty as it pertained to options and stock transactions by Teutonico at Network 1 Financial Securities. FINRA Arbitration No. 16-03163 (October 24, 2016).
On January 19, 2017, another customer filed an investment related FINRA securities arbitration claim concerning Teutonico’s conduct in which the customer requested $73,650.00 in damages supported by allegations of excessive stock trades by Teutonico when he was registered with Network 1 Financial Securities.
Teutonico is also referenced in a customer initiated investment related FINRA securities arbitration claim where the customer was awarded $169,354.00 in compensatory damages, as Teutonico and Network 1 Financial Securities Inc. were collectively found liable on the customer’s claims. FINRA Arbitration No. 18-02714 (September 6, 2019). The Statement of Claim alleges breach of contract, violation of regulatory rules and securities laws, breach of fiduciary duty, unauthorized trading, churning, fraud, suitability, and misrepresentation. The customer allegedly sustained damages by holding GB Sciences and Alitair Pharmaceuticals.
On January 19, 2022, another customer initiated investment related FINRA securities arbitration claim involving Teutonico’s activities was settled for $14,995.00 in damages founded on accusations of negligent supervision, breach of contract, and breach of fiduciary duty concerning IPOs and private placements while Teutonico was associated with Network 1 Financial Securities. FINRA Arbitration No. 19-02809.
Teutonico has been registered with Network 1 Financial Securities since December 7, 2012.
