John Kakonikos, former registered representative with Caldwell International Securities Corp., submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was suspended for 18 months, assessed a deferred fine of $10,000, and ordered to pay restitution of $72,524.53, plus interest, to his customer. John Billy Kakonikos, of Flushing, New York, was found by FINRA to have engaged in excessive and unsuitable trading in his customer’s account, causing realized trading losses of $72,524.53, while generating $41,617.56 in fees and commissions.
According to FINRA, Mr. Kakonikos was the registered representative for a customer with a high-school education, annual income of approximately $25,000 per year, and no experience actively trading securities. Further, FINRA alleged that Mr. Kakonikos had de facto control over this customer’s account. FINRA found that Mr. Kakonikos recommended and executed 117 securities transactions in this account, nearly half of which were placed without the customer’s authorization. In light of the customer’s financial situation, lack of investment experience and financial needs, FINRA found Mr. Kakonikos’ trading to be unsuitable and excessive. Mr. Kakonikos was assessed a deferred fine of $10,000 and suspended by FINRA for 18 months. The suspension is in effect from November 21, 2016 through May 20, 2018. Continue reading →