Harrison, Mezzatesta, Reid, And Rudiger Cited For Churning

The principals and others of the broker-dealer Reid and Rudiger have been sanctioned by FINRA in a disciplinary action. They are:

Edward Joseph Rudiger Jr. (CRD# 2118724)
Kelli A Mezzatesta (CRD# 4701170)
Clifford Ronald Reid (CRD# 1905920)
Marc Harrison (CRD# 1605568)

All four were employed with Reid and Rudiger until 4/30/2026. Of the four, Harrison has been in the industry the longest, starting in 1986. Reid began in 1989, with Rudiger entering the industry in 1992 and Mezzatesta beginning in 2009.

FINRA filed its disciplinary action on 3/2/2026. It follows a FINRA complaint that two of the brokers, Reid and Rudiger, had been engaging in churning and excessively trading in accounts for six years. From February 1, 2018, to October 31, 2023, Reid and Rudiger made unsuitable recommendations in at least 15 accounts that involved repeatedly taking large equity positions in stocks, often using margin, and then selling out of them after relatively short periods to fund purchases of different stocks.

The result of these trades was the firm’s realized income of $548,566.77, $499,251.80 of which was commissions. These also caused realized losses of $1,104,850.61 on accounts with an aggregate average monthly account value of $365,402.34. Reid’s trading in these accounts also caused customers to incur over $149,000 in total trading costs, while the firm generated $129,000 in commissions and revenue in the form of markups and markdowns.

Harrison, a majority owner, and Mezzatesta were also cited because they failed to supervise Reid and Rudiger and investigate red flags that would have shown their continual misconduct. Throughout this period, Mezzatesta served as the firm’s Chief Compliance Officer (“CCO”), and Harrison was a designated supervisory principal for Rudiger and Reid as well as a member of the firm’s Senior Management. Their responsibilities were in the firm’s written supervisory procedures (WSPs), giving them direct responsibility for the two brokers’ activities.

None of these actions favored their clients, as required by Regulation Best Interest. All four individuals deny the allegations and plan to contest them. The action is currently pending, and none have a current registration with any broker-dealer.

Mezzatesta and Harrison have only one disclosure in their CRD: this FINRA action, while Ridiger and Reid have multiple customer disputes and other disclosures. This action is currently “pending” for all four individuals.

What’s The Difference Between Churning And Excessive Trading?

While these two terms sound interchangeable, they aren’t the same.

Churning is a fraudulent practice when a broker executes unnecessary trades solely or primarily to maximize their own commissions instead of acting in the investor’s best interests.
Excessive Trading is when the broker trades too often in an investor’s account without a legitimate reason. The broker trades at a volume and frequency that is far beyond the objectives and risk tolerance of an individual investor. This action drains the account with fees, commissions, and margin interest, making it impossible for the investor to earn dividends or turn a profit.

Both practices can be highly detrimental to an investor’s account. That’s why it’s important for investors and account holders to regularly examine their statements and ask questions if something is unclear or unusual.

Did You Invest With Harrison, Mezzatesta, Reid or Rudiger?

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses from stockbroker misconduct. If you have any questions about how your account was handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.