FINRA Bars Former LPL Rep

The Financial Industry Regulatory Authority barred John Nicholas Terzis, formerly a registered representative with LPL Financial LLC, the nation’s largest independent broker-dealer, after he borrowed $200,000 from one of his customers without first notifying or obtaining approval from LPL in December 2019.

According to FINRA, pursuant to a ten-year written promissory note, Terzis borrowed $200,000 from one of his customers, a 69-year-old senior, who had health issues.

To facilitate the borrowing, Terzis assisted the customer with transferring funds to her personal bank account. Between February 2020 and December 2021, Terzis made monthly payments on the loan, but ceased making payments thereafter.

FINRA claims that given his financial circumstances at the time he borrowed the money, Terzis did not have a reasonable expectation of being able to repay the loan in full.

FINRA reported that Terzis did not provide notice to or obtain approval from LPL prior to borrowing the money. In addition, in October 2020, Terzis falsely stated in response to a firm compliance questionnaire that he had not issued or participated in any promissory notes outside of LPL and had not solicited clients to lend funds.

According to a Form U5 submitted by LPL, Terzis was terminated on Mar. 11, 2022, and disclosed that Terzis had been discharged for failing to timely disclose a loan arrangement with a customer of the firm.

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