Patrick Teutonico Network 1 Broker Investigation

Patrick Teutonico Network 1 Financial Securities broker excessive trading investigation

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Patrick Teutonico a registered representative affiliated with the Network 1 Financial Securities office in Seaford, New York. Mr. Teutonico partnered with Wesley Clinton, another Network 1 broker.

The pending customer dispute that gives rise to this investigation concerns a number of high risk private placements, as well as excessive trading, amounting to nearly 6 times turnover in the account.  Turnover measures the number of times that investment positions in an account are replaced each year.  Industry averages are 1.2 x per year.  In this customer’s case the turnover ratio far exceeded industry standards.  Furthermore, due to the use of margin, or borrowed money the cost to equity ratio in the account was extremely high, meaning the customer needed to generate a 10%+ return in the account just to break even.

Before entering into a trading program the registered rep and the brokerage firm must establish that the trading will be suitable for the client.  Furthermore, firms must take steps to ensure that accounts are not excessively traded (or “churned”) and that the rep is not making “wholesale recommendations” of particular stocks or trades to his clients.

Patrick Teutonico registration and disciplinary history

In order to lawfully sell investments to the public, a registered rep must either be registered or exempt from registration.  FINRA maintains a database that the public can access to check the credentials of firms and their financial advisors.  The website, also known as broker check has a listing for Patrick Teutonico, who has been the subject of  seven customer complaints and one regulatory investigation.

If you suffered investment losses or have had your account excessively traded please call The Law Office of David Liebrader at (702) 380-3131 for a free, confidential consultation to discuss your legal rights and options.  Our firm takes cases on a straight contingency fee, with no money up front, and no money owed unless there is a recovery.

There is no charge for the initial consultation, so call (702) 380-3131 today to speak with an experienced securities attorney who will fight to recover your losses.

The Law Office of David Liebrader practices exclusively in the field of investment loss recovery.  For the past 25 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions.  During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies.  The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.