Timothy Touloukian (CRD: #2803832) is a previously registered broker who was last registered with Paulson Investment Company LLC (CRD#:5670) of New York, NY. His previous employers include John Carris Investments LLC (CRD#:145767, expelled by FINRA in 2014) of Hoboken, NJ, Forefront Capital Markets LLC (CRD#:151812) and Advanced Equities, Inc. (CRD#:35545, expelled by FINRA in 2014), both of New York, NY. Another previous employer, Ehrenkrantz King Nussbaum, Inc. (CRD#:113525), of Melville, NY, was also expelled by FINRA in 2012. He has been in the industry since 1997.
Two customer disputes filed against Timothy Touloukian on 1/23/2020 contain the same allegations of “material misrepresentations concerning an investment in a private placement.” One requests damages of $500,000, the second requests $200,000. These disputes are currently “pending.”
Private placements are also known as an “unregistered offering.” These are shares and/or bonds that are sold to wealthier institutions and frequently to accredited individuals. For companies who are seeking capital for an expansion, it’s a more effective way of keeping a private company private, especially a small and less-established business such as a startup or family-owned business.
These placements can be offered by registered FINRA broker dealers who act as a placement agent while representing the issuer (company.) The issuer can also offer these placements on its own. Private Placements frequently pay a high commission or finder’s fee to stockbrokers who raise money for the company.
The advantages for the company that offers private placement is that there is less regulation and they are less time-consuming, and less costly. However, there is no requirement of securities registration, which can be problematic for the actual investor. Company records can be kept private, like other venture capital investments, and investors aren’t actually able to do as much due diligence as they would otherwise. These types of investments are still subject to federal in state regulations that involve Securities issuance, including being responsible if they engage in fraud and misrepresentation.
In 2011, Advanced Equities allowed Timothy Touloukian to resign after allegations by the Commonwealth of Pennsylvania of “soliciting private equity investment from non-qualified investors.” FINRA sanction Touloukian, who then paid a civil/administrative penalty of $5,000 and another related monetary fine of $2,800. The fines were paid and the suspension rescinded.
In a dispute filed on 8/31/2010, a customer filed a complaint against Touloukian with allegations of excessive trading, fraud, misrepresentation, and breach of fiduciary duty. Touloukian was the registered representative on the customer’s account at the time. The customer requested damages of $250,000; this case was settled for $10,000.
On 7/11/2006, Touloukian was suspended by NASD (National Association of Securities Dealers, the previous regulatory agency that later became FINRA) for using additional broker codes for market-timing accounts in order to increase trading for many hedge-fund customers. Some of the mutual funds blocked his broker codes for excessive trading with increasing frequency. He requested new codes from his company, Paulsen, to bypass the blocks and trade freely without detection by the mutual funds. Once discovered, NASD suspended Touloukian for 45 days and fined him $15,000. He signed a letter of Acceptance, Waiver & Consent on 6/12/2006.
In a separate action, The State of Connecticut also restricted Touloukian’s Connecticut securities business for three years. His suspension ended on September 30, 2006, and he was required to accept conditional registration in Connecticut on December 13, 2006.
On 8/31/2006, Touloukian withdrew his application for salesperson registration in the State of Illinois and paid the costs of an investigation. He agreed not to re-apply in Illinois for two years.
Timothy Touloukian also has two tax liens on his record, both from May of 2014.
Have You Invested With Timothy Touloukian?
The Financial Industry Regulatory Authority (FINRA) censured and assessed a fine of $50,000 against Paulson Investment Company LLC, in connection with its sale and solicitation of private placement offerings to investors, in violation of Rule 506 of Regulation D and Section 5 of the Securities Act of 1933. Among other things, Regulation D provides a legal “safe harbor” for investment firms to sell and market private placements, which are restricted securities (i.e., not traded on a public market and therefore carry more risk), to no more than 35 non-accredited investors, provided the firm has a pre-existing relationship with that investor.
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 due to stockbroker misconduct. If you have any questions about how your account has been 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 and let us know how we can help.