FINRA

Without admitting or denying the findings, Terzis consented to the sanction and to the entry of findings that pursuant to a ten-year written promissory note, he borrowed $200,000 from one of his customers, a 69-year-old senior who had health issues, without first notifying or obtaining approval from his member firm. The findings stated that to facilitate the borrowing, Terzis assisted the customer with transferring funds to her personal bank account. For almost two years Terzis made monthly payments on the loan but ceased making payments thereafter. Given his financial circumstances at the time he borrowed the money, Terzis did not have a reasonable expectation of being able to repay the loan in full. In addition, Terzis falsely stated in response to a firm compliance questionnaire that he had not issued or participated in any promissory notes outside of the firm and had not solicited clients to lend funds.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All capacities

Indefinite

12/23/2022

LPL Financial LLC

Discharged

Failed to timely disclose loan arrangement with customer to Firm.

Through attorney, client alleges misappropriation of funds in excess of $5k; Time period of claim: 12/19/2019- 01/06/2020

$200,000.00

CLIENT ALLEGES APPROXIMATELY $6,500.00 IN LOSSES DUE TO UNSUITABLE ALLOCATION. CLAIM DENIED.

$6,500.00

A THOROUGH PROFILING OF THIS CUSTOMER REVEALED THE NEED FOR GROWTH; BENEFICIARY PROTECTION, DIVERSIFICATION, THE ABILITY TO HAVE AN INCOME FOR LIFE, TAX FREE EXCHANGES BETWEEN ACCOUNTS, TAX DEFERRAL AND LIQUIDITY FOR POSSIBLE MONTHLY INCOME. THE PRODUCT MFS/SUNLIFE REGATTA PLATINUM FIT ALL THESE CRITERIA. THE ALLOCATION WAS IN A MODERATE GROWTH ALLOCATION; 20% HIGH YIELD, 20% MASS IN GROWTH; 20% RESEARCH, 20% MASS INV TRUST; 20% UTILITIES. THE CONTRACT OFFERED BENEFICIARY PROTECTION OF AN AUTOMATIC 5%/YEAR INCREASE OR ANNUITY ACCOUNT VALUE WHATEVER WAS GREATER AT THE CUSTOMERS STATED RETIREMENT AGE. 60% OF THE CONTRACT WAS LIQUID. THE CUSTOMER SIGNED A DISCLOSURE AGREEMENT TO ALL THE ACCOUNT PROVISIONS AND NEVER RESPONDED TO ATTEMPTS TO UPDATE OR REALLOCATE THE SUB ACCOUNTS.