Indianapolis, IN – December 6, 2025 – Edward Joseph Villanyi (CRD# 2348401) is a registered broker and investment adviser representative currently employed with Stifel, Nicolaus & Company, Incorporated in Indianapolis, IN. According to his FINRA BrokerCheck record, Villanyi has one pending customer complaint filed on August 21, 2025, alleging unauthorized trading involving the liquidation of an investment and purchase of two mutual funds without customer authorization. The customer alleges losses of over $100,000. This article provides an overview of the allegations and information about investor rights under securities laws.
BrokerCheck Snapshot
Name: Edward Joseph Villanyi
CRD #: 2348401
Firm: Stifel, Nicolaus & Company, Incorporated
Location: Indianapolis, IN
Years in Industry: 32
Number of Disclosures: 1 (1 Pending Customer Complaint)
Customer Complaint Against Edward Joseph Villanyi
According to FINRA BrokerCheck records, Edward Joseph Villanyi has one pending customer complaint:
Written Complaint – Filed August 21, 2025 – Pending
A customer filed a written complaint against Villanyi alleging that he liquidated an investment without the customer’s authorization and invested the proceeds in two mutual funds. The alleged conduct occurred while Villanyi was employed at Stifel, Nicolaus & Company, Incorporated. The customer alleges losses of over $100,000. The product type involved is listed as “Mutual Fund.” The complaint remains pending as of the date of this report.
Unauthorized trading occurs when a broker executes trades in a customer’s account without obtaining prior authorization from the customer. Brokers are required to obtain express permission for each transaction unless the customer has granted written discretionary authority. Liquidating investments and purchasing new securities without authorization violates FINRA rules and securities laws and can result in significant investor losses.
These allegations suggest that Villanyi may have exercised unauthorized discretion over the customer’s account by selling an existing position and reallocating the funds into two mutual funds without the customer’s knowledge or consent. Such conduct, if proven, would constitute broker misconduct and a violation of the customer’s right to control their own investment decisions.
Employment History
Villanyi has been in the securities industry since 1993 and has worked for several major firms:
- Stifel, Nicolaus & Company, Incorporated (July 2022 – Present): Indianapolis, IN
- Merrill Lynch, Pierce, Fenner & Smith Incorporated (June 2009 – July 2022): Indianapolis, IN
- Wells Fargo Advisors, LLC (July 2003 – June 2009): Indianapolis, IN
- Prudential Securities Incorporated (May 1993 – July 2003): New York, NY
Villanyi holds Series 3, Series 7, Series 63, and Series 65 licenses and is registered in 25 U.S. states and territories.
Pattern of Unauthorized Trading and Risk Factors
While each case is unique, allegations of unauthorized trading are serious violations of securities industry rules. When brokers execute trades without authorization, they may be churning accounts to generate commissions, placing unsuitable investments that benefit the broker’s compensation, or making investment decisions based on their own judgment rather than the customer’s instructions and investment objectives.
The alleged liquidation of an investment and reinvestment into two mutual funds raises concerns about whether the transactions were suitable for the customer and whether they were executed in the customer’s best interests. Mutual funds often carry sales charges and ongoing management fees, which can generate compensation for brokers and their firms.
Investors who worked with Villanyi at Stifel, Nicolaus & Company or at his previous firms should carefully review their account statements and transaction history. If you notice unexpected trades, liquidations you did not authorize, or investments you did not request, you may have a claim for recovery through FINRA arbitration.
Can Investors Recover Losses?
Investors who experienced losses due to unauthorized trading, unsuitable investments, or other violations of securities laws may be entitled to recover losses through FINRA arbitration.
Patil Law, P.C. has over 15 years of experience representing investors in FINRA arbitration and securities litigation, with more than $25 million recovered for clients across 1,000+ cases. We provide a free, confidential consultation to review your potential claim. Our firm works on a contingency fee basis, meaning you pay no attorney fees unless we successfully recover money for you.
About FINRA Arbitration
FINRA arbitration is a streamlined dispute resolution process for securities-related claims. It offers a faster, more cost-effective alternative to traditional court litigation. Most cases are resolved within 12-16 months. Claims generally must be filed within six years of the incident. For investors who experienced losses due to broker misconduct, FINRA arbitration provides an avenue to seek recovery without the expense and delay of federal court.
Related Brokers and Firms
Investors who have concerns about their accounts at Stifel, Nicolaus & Company or Merrill Lynch should review disclosure records for other registered representatives at these firms. Additionally, investors should understand their rights under securities laws when working with any financial professional.
Frequently Asked Questions
What is the disclosure against Edward Joseph Villanyi?
Edward Joseph Villanyi has one pending customer complaint. A written complaint was filed on August 21, 2025, alleging that Villanyi liquidated an investment without the customer’s authorization and invested the proceeds in two mutual funds. The customer alleges losses of over $100,000. The alleged conduct occurred while Villanyi was employed at Stifel, Nicolaus & Company, Incorporated. The complaint remains pending.
Can investors recover losses involving Stifel?
Yes. Investors who experienced losses due to broker misconduct at Stifel, Nicolaus & Company may be entitled to recover through FINRA arbitration. Most brokerage agreements contain mandatory arbitration clauses. Securities laws provide investors with remedies when brokers engage in unauthorized trading, recommend unsuitable investments, or breach fiduciary duties.
What is FINRA arbitration?
FINRA arbitration is a forum for resolving disputes between investors and brokerage firms or registered representatives. It is typically faster and less expensive than court litigation. Most investor-broker disputes are resolved through this process due to arbitration clauses in account agreements. An arbitration panel hears evidence from both sides and issues a binding decision.
What is unauthorized trading?
Unauthorized trading occurs when a broker executes trades in a customer’s account without obtaining prior authorization from the customer. Brokers are required to obtain express permission for each transaction unless the customer has granted written discretionary authority. Unauthorized trading violates FINRA rules and securities regulations and can result in significant investor losses.
How do I look up a broker on BrokerCheck?
You can look up any registered broker or brokerage firm on FINRA’s BrokerCheck website at brokercheck.finra.org. Simply enter the broker’s name or CRD number to access their professional background, employment history, licenses, and any customer complaints or regulatory actions. This is a free public resource that all investors should use before working with a financial professional.
What should I do if I suspect broker misconduct?
If you suspect broker misconduct, take these steps: (1) Document all account statements, trade confirmations, and communications with your broker; (2) File a complaint with FINRA and your state securities regulator; (3) Consult with a securities attorney who handles investor claims. Do not delay, as arbitration claims must generally be filed within six years. Contact Patil Law, P.C. at 800-950-6553 for a free consultation.
About Patil Law, P.C.
Patil Law, P.C. is a securities litigation firm dedicated to representing investors who have suffered losses due to broker misconduct, unsuitable recommendations, and securities fraud. Founded in 2018 by attorney Chetan Patil, the firm focuses exclusively on FINRA arbitration and investment loss recovery.
With over 15 years of combined experience in securities law, Patil Law has successfully recovered more than $25 million for clients across 1,000+ cases. Attorney Chetan Patil earned his law degree from Case Western Reserve University School of Law. Attorneys Gabriela Dubrocq and Patricia Herrera earned their law degrees from University of Miami. The firm handles cases nationwide involving unauthorized trading, churning, unsuitable investments, breach of fiduciary duty, and failure to supervise.
Patil Law works on a contingency fee basis, meaning clients pay no attorney fees unless the firm successfully recovers money on their behalf. All consultations are free and confidential.
Contact Patil Law, P.C.
If you have experienced investment losses involving Edward Joseph Villanyi, Stifel, Nicolaus & Company, or Merrill Lynch, contact Patil Law, P.C. for a free, no-obligation consultation. Our experienced securities attorneys can review your case and explain your legal options.
Phone: 800-950-6553
Email: info@patillaw.com
Website: investmentlosslawyer.com
We work on a contingency fee basis—you pay no attorney fees unless we successfully recover money for you.
Disclaimer
The information in this post is based on FINRA BrokerCheck records and public filings. Allegations described are pending or unproven and may be contested. All investors are entitled to fair treatment under securities laws. This is attorney advertising. Prior results do not guarantee a similar outcome. This communication is for informational purposes only and does not create an attorney-client relationship.
