Theodore William Byrer

(CRD #2980696, Westfield, Indiana)

July 23, 2026 – An AWC was issued in which Byrer was suspended from association with any FINRA member in all capacities for 14 months. In light of Byrer’s financial status, no monetary sanction has been imposed. Without admitting or denying the findings, Byrer consented to the sanction and to the entry of findings that he willfully violated Reg BI by recommending an options trading strategy to four retail customers, two married couples, that was not in their best interest or suitable for them.

The findings stated that Byrer recommended that the customers engage in an options trading strategy involving purchases of out-of-the-money puts where the underlying assets were equity index funds. None of the customers owned shares of the equity index funds that underlay the recommended put options contracts. Byrer initially intended this strategy to hedge the customers’ other long equity positions against general market downturn and volatility. Over time, Byrer recommended the customers purchase put options contracts that were further out-of-the-money or closer in time to the expiration date in increasing quantities and frequency.

Byrer recommended one couple engage in a speculative options strategy, which exposed the customers to risk of losing their premiums, despite the couple having an investment objective of “capital appreciation,” a risk tolerance of “moderate,” and Byrer’s awareness of their imminent retirement plans. Byrer’s recommendation resulted in almost $400,000 in put option losses and generated over $62,000 in commissions. With respect to the other married couple, Byrer did not have a reasonable basis to believe that a series of options transactions he recommended were not excessive, were in the customers’ best interest, or were suitable. Ultimately, Byrer’s recommendations to this couple resulted in over $360,000 in put options losses and generated over $217,000 in commissions.

The findings also stated that Byrer made false entries in his member firm’s customer contact system and mismarked solicited trades as unsolicited. The findings also included that Byrer exercised discretion without prior written authorization when entering trades in four customer accounts. Although the customers understood Byrer was conducting trading in their accounts, none had given him prior written authorization, and his firm had not accepted the accounts as discretionary. In addition, Byrer inaccurately stated that he did not exercise discretion in any customer account in annual compliance questionnaires submitted to the firm.

FINRA found that Byrer used unapproved personal text messages to communicate with customers about firm business, sent promissory and unwarranted communications through some of those messages and failed to include the requisite disclosures related to options recommendations. Byrer’s use of an unapproved text messaging device caused his firm not to comply with applicable retention rules related to communications. Furthermore, Byrer inaccurately stated that he did not use unapproved communications channels on annual compliance questionnaires submitted to the firm.

The suspension is in effect from July 23, 2026, through September 22, 2027. (FINRA Case #2023078559701)

If you have suffered losses as a result of Theodore William Byrer’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 Theodore William Byrer 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.