Efthimios (Tim) Petrou Investigation
September 2022 – Ronkonkoma, NY
According to publicly attained records, Efthimios (Tim) Petrou, a stockbroker who was last employed by Arive Capital Markets , discloses a recent regulatory sanctioned resulting from a finding by FINRA that he excessively traded a customer account.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In August 2022, FINRA suspended Petrou for six months and ordered him to pay restitution of over $96,000 and a fine of $5,000 to resolve allegations that he excessively and unsuitably traded the account of a 67 year old client from Georgia who had limited knowledge of the stock market. According to FINRA Petrou recommended 73 trades that caused the customer to pay over $96,000 in commissions and margin interest and resulted in losses of more than $17,000. This trading resulted in a cost-to-equity ratio of more than 86 percent— meaning the customer’s investments had to grow by more than 86 percent just to break even. This resulted in an annualized turnover rate of 22.
Turnover rate represents the number of times that a portfolio of securities is exchanged for another portfolio of securities. A turnover rate of six or a cost-to-equity ratio above 20 percent generally indicates that an account has been excessively traded.
Petrou was employed by Arive Capital Markets from 7/2015-7/2022.
If you have losses in an investment account handled by Efthimios (Tim) Petrou , contact us for a no charge consultation with an experienced securities attorney to learn about your legal options.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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