Allegations of financial malpractice are serious matters that require immediate attention. The case of Terry Tzagarakis, a former broker from ARIVE CAPITAL MARKETS, is one such instance that has come under scrutiny. On September 12, 2023, Tzagarakis was suspended indefinitely by the Financial Industry Regulatory Authority (FINRA) for failing to comply with an arbitration award or settlement agreement. Moreover, he did not satisfactorily respond to a FINRA request to provide information concerning the status of compliance.
Understanding the Allegation and the FINRA Rule
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The gravity of the allegation against Terry Tzagarakis lies in his failure to adhere to the terms of an arbitration award or settlement agreement. This violation is considered severe as it undermines the integrity of the arbitration process, a crucial mechanism for resolving disputes within the financial industry.
In simple terms, the arbitration process is a way to resolve disputes outside the courts where a neutral third party, the arbitrator, makes a decision. When a broker does not comply with the arbitrator’s decision, it poses a significant risk to both the involved parties and the credibility of the arbitration process.
This violation is governed by FINRA Rule 9554. According to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, a broker can be suspended if they fail to comply with an arbitration award or settlement agreement or fail to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.
Why This Matters for Investors
Investors place their trust and hard-earned money in the hands of financial advisors and brokers. When a broker, like Terry Tzagarakis, fails to comply with an arbitration award or settlement agreement, it can potentially lead to financial losses for investors. This not only harms the investor financially but also erodes their trust in the financial system.
Moreover, the indefinite suspension of a broker can leave investors in a state of uncertainty about their investments. This is why it is crucial for investors to stay informed about the conduct and regulatory status of their brokers.
Red Flags for Financial Advisor Malpractice and Recovery of Losses
Investors should be vigilant for signs of financial advisor malpractice. These red flags could include unexplained losses, excessive trading, inappropriate investments, or failure to provide account statements. If an investor suspects malpractice, they should seek legal advice immediately.
Fortunately, there are mechanisms in place to help investors recover their losses. One of these is FINRA Arbitration, a dispute resolution process that is quicker and less formal than litigation. It is here that the national investment fraud law firm Haselkorn & Thibaut can assist. With over 50 years of experience, offices in Florida, New York, North Carolina, Arizona, and Texas, and an impressive 98% success rate, they have successfully recovered financial losses for investors across the country.
Currently, Haselkorn & Thibaut is investigating the case of Terry Tzagarakis and ARIVE CAPITAL MARKETS. They offer free consultations to clients, operate on a “No Recovery, No Fee” policy, and can be reached at their toll-free consultation number, 1-800-856-3352.
Investors should remember that allegations of financial malpractice are serious and should be addressed promptly to mitigate potential losses. With the help of experienced law firms like Haselkorn & Thibaut, investors can navigate the complex process of FINRA Arbitration and work towards recovering their losses.
