Did you lose money investing with Richard Demetriou (CRD# 828433)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Richard Demetriou. If you suffered losses investing with Richard Demetriou, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
As of February 4, 2023, Richard Demetriou’s FINRA BrokerCheck Report contains the following:
BARRED: FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.
Disclosure Events
3 Customer Disputes
1 Regulatory Event
1 Financial Disclosure
1 Judgment(s)/Lien
July 5, 2021 – A National Adjudicatory Counsel (NAC) decision became final in which Demetriou was barred from association with any FINRA member in all capacities and ordered to pay $337,700 in restitution to customers. In light of the bar, the NAC did not impose fines totaling $163,000 or suspensions from association with any FINRA member in all capacities totaling four years and three months for other violations. The NAC modified the findings and sanctions imposed by the Office of Hearing Officers (OHO).
The sanctions were based on findings that Demetriou made material misrepresentations of fact in widely distributed emails to current and former customers. The findings stated that Demetriou sent investment summaries and emails to his customers and former customers that contained inaccurate information and failed to provide a sound basis for evaluating facts. Demetriou sent the emails without obtaining approval by an appropriately qualified registered principal of his member firm. Much of the alleged misconduct involves Demetriou’s involvement with a private placement of preferred units in a limited partnership. The limited partnership was organized by the owner of Demetriou’s previous firm, who employed him to solicit investments from his customers. The customers had suffered significant losses in partnerships sponsored by Demetriou’s previous firm and he represented that the limited partnership was offered to them as a means of recouping those losses. Demetriou recommended the limited partnership, made misrepresentations concerning the supposed collateral securing the investments and told customers that an investment of 10 percent of their previous losses would result in recovery of their lost investments, plus a profit—alleged returns of more than 1,000 percent. Rather than recoup their investments, however, the customers lost an additional $337,700 when the limited partnership failed, and the alleged collateral was not foreclosed and liquidated in order to return their investment. The findings also stated that Demetriou engaged in an undisclosed, unapproved OBA with the limited partnership by being employed by it and serving as its managing member. FINRA also found that Demetriou used unapproved personal email accounts to conduct securities business with firm customers. (FINRA Case #2013035345701)
Current and Previous Registrations
04/17/2009 – 06/02/2021 TITAN SECURITIES (CRD#:131392) PLANO, TX
11/09/2001 – 03/30/2009 PRIVATE CONSULTING GROUP, INC. (CRD#:45053) TUCKER, GA
04/29/1992 – 11/29/2001 IFG NETWORK SECURITIES, INC. (CRD#:19948) ATLANTA, GA
06/02/1986 – 05/21/1992 DERAND/PENNINGTON/BASS, INC. (CRD#:4679)
10/11/1990 – 06/04/1991 MONARCH SECURITIES, INC. (CRD#:2809)
04/28/1986 – 06/10/1986 MARION BASS SECURITIES CORPORATION (CRD#:7961)
09/26/1983 – 04/25/1986 PHOENIX FINANCIAL CORPORATION (CRD#:8340)
FINRA expelled the firm on 11/14/1994
10/14/1976 – 07/23/1984 NML EQUITY SERVICES, INC. (CRD#:2881)
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with Richard Demetriou and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
