According to a Letter of Acceptance, Waiver, and Consent (AWC), the Financial Industry Regulatory Authority (FINRA) has barred an Illinois-based financial advisor for borrowing $200,000 from a client without obtaining approval from his firm.

John N. Terzis was discharged from LPL over allegations that he failed to promptly disclose a loan arrangement with a client. Under the loan terms, Terzis started making monthly payments on the loan but stopped after December 2021. The activity was discovered when the customer submitted a complaint to LPL in December 2021.

Terzis' actions violated FINRA's Rule 3240, prohibiting advisors from borrowing or lending money to clients without prior firm approval.

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