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.