FINRA Bars Richard Demetriou of Titan Securities for Unapproved Securities Sales
According to a Financial Industry Regulatory Authority (FINRA) Decision on June 2, 2021, the regulator found that Richard Demetriou, a registered representative at Titan Securities in Addison, Texas, allegedly made material, false and misleading statements to customers, engaged in undisclosed, unapproved outside business activities, violated advertising and communications with the public rules, and used unapproved personal email accounts for securities business. For this violation, Demetriou is reportedly barred and ordered to pay restitution of $337,700, according to FINRA.
FINRA also found the registered principal, and Titan Securities failed to supervise outside business activities, violated record-keeping rules, and violated rules in connection with a contingency offering. For these violations, Titan and its principal are reportedly fined $50,000, jointly and severally, and its principal is suspended in all principal and supervisory capacities for one year.
FINRA reportedly filed the complaint in 2016 alleging that Demetriou made misrepresentations to prospective investors in connection with his promotion of a Mississippi company involved in speculative real estate investment, RBCP Preferred, LLC .
RBCP was allegedly organized by the owner of Demetriou’s previous member firm, who purportedly employed Demetriou to solicit investments from Demetriou’s customers. The customers had allegedly suffered significant losses in partnerships sponsored by Demetriou’s previous firm and Demetriou represented that RBCP was offered to them as a means of recouping those losses. The complaint alleges that Demetriou made numerous misrepresentations to prospective investors in sales literature, including four of his member firm’s customers, regarding the investment. Demetriou allegedly 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. Instead of recouping losses, the customers reportedly lost an additional $337,700 when RBCP failed and the alleged collateral was not foreclosed, according to FINRA.
While he was promoting the company to his former member firm’s customers and other prospective investors, Demetriou purportedly participated in a variety of activities related to the company. At the time of the complaint, the company’s investment has reportedly not returned any investment funds and all investor monies appear to have been lost and the coins that purportedly collateralized the company’s investment were never liquidated in order to repay investors.
The complaint also alleges that Demetriou participated in an undisclosed outside business activity without permission from his member firm as well as other FINRA rules violations.
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The White Law Group is investigating FINRA arbitration cases involving Richard Demetriou and the liability his Titan Securities may have for failure to properly supervise him.
When brokers abuse client accounts and conduct transactions that violate securities laws, such as making unsuitable investments recommendations or churning accounts, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
If you suffered losses investing with Richard Demetriou and Titan Securities, the securities attorneys at The White Law Group may be able to help you. Please call 888-637-5510 for a free consultation, or visit us on the web at www.whitesecuritieslaw.com.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois.