Marc Harrison, Kelli A. Mezzatesta, Clifford Ronald Reid, Edward Joseph Rudiger Jr.

Reid & Rudiger LLC (CRD #47263, New York, New York), Marc Harrison (CRD #1605568, Atlantic Highlands, New Jersey), Kelli A. Mezzatesta (CRD #4701170, Monroe Township, New Jersey), Clifford Ronald Reid (CRD #1905920, Jamaica, New York), and Edward Joseph Rudiger Jr. (CRD #2118724, Fort Lauderdale, Florida) March 2, 2026 – The firm, Harrison, Mezzatesta, Clifford Ronald Reid (Reid), and Edward Joseph Rudiger Jr. (Rudiger) were named respondents in a FINRA complaint alleging that the firm, Reid and Rudiger willfully violated Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5 by churning customer accounts. The complaint alleges that the firm, Reid and Rudiger recommended a high volume, high-cost market-timing strategy, which 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 that were unsuitable or in the best interests of customers. Reid and Rudiger exercised de facto control of trading in the accounts as the customers relied on them for trade ideas and routinely followed their recommendations. Rudiger and Reid were willfully blind to the cumulative trading costs they each imposed on their respective customers. As a result of their trading, Rudiger and Reid maximized their own financial benefit at the expense of their customers, generating collective costs of $548,566.77 ($499,251.80 of which were commissions) and causing realized losses of $1,104,850.61 on accounts with an aggregate average monthly account value of $365,402.34. The complaint also alleges that firm, Reid, and Rudiger willfully violated Reg BI by excessively trading customer accounts. Reid and Rudiger made recommendations without exercising reasonable diligence, care, and skill to have a reasonable basis to believe that the series of recommended transactions were suitable for or in the best interests of those customers based on the customers’ investment profile. The complaint further alleges that the firm, Reid, and Rudiger engaged in excessive and quantitatively unsuitable trading as evidenced by the high cost-to-equity ratios, the frequency of the transactions, and the transaction costs incurred. The firm is liable for Rudiger’s and Reid’s unsuitable trading of their customers’ accounts because they were both agents of the firm acting within the scope of their duties when they engaged in this misconduct. In addition, the complaint alleges that the firm, Reid and Rudiger willfully violated Reg BI by recommending a high-volume, high-cost market-timing strategy that made it virtually impossible for those accounts to realize a profit. The strategy, which 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, resulted in customers paying unreasonable costs. The firm is liable for Reid and Rudiger’s unsuitable recommendations to their customers, as well as the recommendations that were not in their customers’ best interest, because they were both agents of the firm acting within the scope of their duties when they engaged in this misconduct. Moreover, the complaint alleges that the firm and Rudiger failed to establish and maintain a supervisory system, including WSPs, reasonably designed to achieve compliance with securities laws and regulations and FINRA rules prohibiting churning and excessive trading, and the firm willfully violated Exchange Act Rule 15l 1(a)(2)(iv) by failing to establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance with Reg BI, including the Care Obligation. Rudiger, as the firm’s chief executive officer (CEO), was responsible for ensuring the firm had in place a supervisory system designed to reasonably detect and deter prohibited activities, including churning and excessive trading. Rudiger was also responsible for annually reviewing the firm’s WSPs and certifying that its processes to establish, maintain, review, test and modify written compliance policies and written supervisory procedures were reasonably designed. The firm conducted manual suitability reviews and did not use available exception reports that included information regarding cost-to equity ratio and turnover rate and did not otherwise calculate, obtain, or consider those metrics in conducting any supervisory reviews of Reid or Rudiger’s trading for quantitative suitability. Furthermore, the complaint alleges Harrison and Mezzatesta failed to identify or investigate the red flags of potential churning and excessive trading by Reid and Rudiger and failed to reasonably address their churning and excessive trading. Harrison and Mezzatesta missed or ignored multiple red flags indicating that Reid and Rudiger were churning or excessively trading, did not use available exception reports that included information regarding cost-to-equity ratio and turnover rate, and did not otherwise calculate, obtain, or consider those metrics in conducting any of their supervisory reviews of Reid and Rudiger’s trading for quantitative suitability. Harrison and Mezzatesta’s failures to reasonably supervise resulted in the firm, Reid, and Rudiger’s willful violations of Section 10(b) of the Exchange Act, Rule 10b-5 thereunder and Exchange Act Rule 15l-1. (FINRA Case #2019060647601) If you have suffered losses as a result of Marc Harrison, Kelli A. Mezzatesta, Clifford Ronald Reid, and Edward Joseph Rudiger Jr.'s act and/or actions, we would like to hear from you. We are currently investigating claims on behalf of clients who have suffered significant losses in their portfolios that are managed by Marc Harrison, Kelli A. Mezzatesta, Clifford Ronald Reid, and Edward Joseph Rudiger Jr. The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at 866-330-6707 or email Matthew Schwartz directly at mschwartz@tslfirm.com.