Securities Arbitration Investment Fraud Lawyers » Investment and Regulatory News » Arive Capital Markets Stockbroker Sanctioned By FINRA For Excessive Trading

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Efthimios George Petrou (also known as Tim Petrou) of Ronkonkoma, New York, a stockbroker formerly registered with Arive Capital Markets, has been fined $5,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon accusations that Petrou made unsuitable recommendations and excessive transactions. Letter of Acceptance, Waiver, and Consent No. 2019060645001 (August 19, 2022).

According to the AWC, between January 2017 and October 2018, while associated with Arive Capital Markets, Petrou unsuitably and excessively traded a customer’s account. The customer, a retired pharmacist with scant knowledge of the stock market, was told by Petrou to place 73 transactions in his account.

Petrou recommended purchases with a total principal value of $2,441,587.34, which resulted in an annualized turnover rate of 22. The stockbroker caused the customer to pay $7,958.52 in margin interest and $88,348.13 in commissions and trade costs for a total of $96,306.65. Because of Petrou’s recommendations, the customer experienced losses of approximately $17,000.00. Accordingly, Petrou violated FINRA Rules 2010 and 2111.

Public Disclosure shows that Petrou is also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $17,750.00 in damages based upon allegations that Petrou breached a fiduciary duty and made misrepresentations and unauthorized transactions in connection with the recommendation and sale of over-the-counter equities when Petrou was associated with JP Turner Company. FINRA Arbitration No. 05-02000 (November 15, 2007).

Petrou was associated with Arive Capital Markets from July 31, 2015, to July 26, 2022.