Jeffrey Karakatsanis (CRD #6911899, Whitestone, New York)

March 25, 2022 – An AWC was issued in which Karakatsanis was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Karakatsanis consented to the sanction and to the entry of findings that he engaged in conversion and improper use of funds. The findings stated that Karakatsanis, without authorization, reversed fees totaling $2,663 charged to his own bank account, and fees totaling $170.24 charged to his friend’s bank account, held at his member firm’s bank affiliate. When Karakatsanis reversed these fees, the bank had already deducted funds from the accounts to pay the fees. Karakatsanis used the computer of another bank employee to reverse the fees without that employee’s knowledge or consent. By reversing the fees, Karakatsanis caused $2,663 of the bank’s funds to be transferred to his own bank account and $170.24 of the bank’s funds to be transferred to his friend’s bank account. Neither Karakatsanis nor his friend owned or were entitled to possess the funds they received as a result of the fee reversals, and neither returned the funds to the bank. (FINRA Case #2021072686001)