Nikolay Zotenko Fined By FINRA

The Financial Industry Regulatory Authority (FINRA) reports allegations of sales practice violations by securities broker Nikolay Zotenko [CRD #: 6334022, Beverly Hills, CA]. Zotenko worked for Morgan Stanley from 2015-2021.

Notably, FINRA sanctioned the securities broker. However, Zotenko denies the allegations. Read the following summary of the FINRA enforcement action to learn more about the allegations against Zotenko.

FINRA Sanctions Morgan Stanley Smith Barney Securities Broker Zotenko

Evidently, on May 13, 2022, FINRA executed Letter of Acceptance, Waiver, and Consent (AWC) #: 2021071532701. Notably, the regulator issued him a fine in the amount of $10,000 and suspended him for one year. Supposedly, Zotenko distributed unauthorized and misleading emails concerning an investment opportunity.

Specifically, FINRA says that from January 19, 2021, to February 3, 2021, Nikolay Zotenko created and sent to potential retail clients over 1,150 retail communications regarding a private placement investment while he was associated with Morgan Stanley Smith Barney LLC. The communications allegedly contained misleading and unwarranted statements and, as a result, violated the content standards for member communications with the public. Additionally, Zotenko allegedly neglected to get the approval of a registered principal before transmitting the retail communications.

Moreover, it was determined that Nikolay Zotenko’s communication failed to provide a fair and balanced presentation to investors concerning the basis for evaluating the proposed investment. Specifically, the communication did not include the name of the investment and neglected to discuss the potential benefits versus potential risks. Evidently, Zotenko sent the communication to over 600 prospective clients without first getting approval from Morgan Stanley.

On February 1, 2021, after Nikolay Zotenko sent out the communication, he submitted the content of the communication for approval to Morgan Stanley. However, Morgan Stanley denied Zotenko’s request for approval on that same date. Nevertheless, on February 2-3, 2021, Zotenko allegedly sent the communication to an additional 550 potential clients. In order to gain access to Morgan Stanley’s internal system, Zotenko allegedly falsely claimed that he did not intend to send the communication to more than 25 recipients. As a result, Zotenko violated FINRA Rules 2010, 2210(b)(1), 2210(d)(1)(A), and 2210(d)(1)(B).

Did Morgan Stanley Smith Barney Securities Broker Nikolay Zotenko Cause You To Experience Damages?

Did you sustain damages through any sales practice violations by Nikolay Zotenko? If so, contact Soreide Law Group at (888) 760-6552 to discuss your situation with a securities attorney about a potential recovery of your investment damages. Notably, Soreide Law Group has successfully recovered money for hundreds of investors in all 50 states. The firm represents clients through a contingency fee arrangement and advances all costs. Zotenko and brokerage firms Zotenko associated with deny all allegations against them.