December 2023 | Charlotte, NC
Looking to recover your investment losses? If you’ve suffered financial harm through dealings with George Terlizzi, don’t wait to take action. Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation with experienced securities fraud attorneys today.
What You Need to Know About George Terlizzi
- Full Name: George Terlizzi
- CRD Number: 5834250
- Current Status: Not currently registered (previously at Arkadios Capital until December 2023)
- Previous Locations: Charlotte, NC (primary location)
- Registration History: Previously registered with Arkadios Capital (2022-2023) and Kalos Capital, Inc. (2012-2022)
- Customer Disputes: 7 disclosed customer disputes (6 settled, 1 pending)
- Professional Licenses: Passed Series 7 and Series 66 exams
- Other Business Activities: CEO of South Park Capital, an independent financial advisory firm and insurance brokerage
- Office Address: 6101 Carnegie Blvd., Suite 350, Charlotte, NC 28209
- Current FINRA BrokerCheck: Multiple customer disputes related to alternative investments
- Settlement History: Multiple settled disputes with payments ranging from $10,000 to $79,174
- Pending Claim: Currently facing a $65,000 claim alleging unsuitable investment recommendations
Detailed Case Overview: The Allegations Against George Terlizzi
George Terlizzi, formerly a registered representative with Arkadios Capital in Charlotte, North Carolina, is currently the subject of multiple customer complaints that have raised serious concerns about his investment recommendations and practices.
According to FINRA BrokerCheck records, Terlizzi has been named in seven customer disputes, with allegations primarily focused on unsuitable investment recommendations, particularly involving high-risk, illiquid alternative investments such as non-publicly traded REITs (Real Estate Investment Trusts), limited partnerships, and business development companies.
One of the most concerning patterns emerging from these complaints is the consistent allegation that Terlizzi recommended alternative investments that were unsuitable for his clients’ risk profiles, investment objectives, and financial situations. These alternative investments are often characterized by their illiquidity, complexity, and higher risk profiles compared to traditional market securities.
In addition to unsuitability claims, customers have alleged that Terlizzi failed to conduct proper due diligence on these investment products, made misrepresentations and omissions of material facts, and breached his fiduciary duty to act in clients’ best interests.
While six of these disputes have been settled for amounts ranging from $10,000 to $79,174, a pending arbitration claim filed in January 2025 alleges that Terlizzi recommended an unsuitable interval fund, seeking $65,000 in damages. This ongoing case (FINRA Case #25-00185) suggests that issues with Terlizzi’s investment recommendations may have continued through his time at Arkadios Capital.
The pattern of settled complaints—coupled with the current pending arbitration—raises significant red flags about Terlizzi’s investment practices and adherence to securities regulations designed to protect investors.
Historical and Background Information
Terlizzi entered the securities industry in 2012 when he became registered with Kalos Capital, Inc. in Charlotte, NC. He remained with Kalos for approximately ten years before moving to Arkadios Capital in August 2022, where he stayed until December 2023. According to FINRA records, he is not currently registered with any broker-dealer.
His educational background includes passing the Securities Industry Essentials Examination (SIE) in October 2018, the General Securities Representative Examination (Series 7) in June 2012, and the Uniform Combined State Law Examination (Series 66) in March 2015.
Beyond his role as a registered representative, Terlizzi has operated as the CEO of South Park Capital, Inc. since September 2014. This company is described as an independent financial advisory firm and insurance brokerage that serves as the “public marketing arm” for Terlizzi’s financial services business. According to his disclosure, he spends approximately 100 hours per month on this business, with about 80 of those hours devoted to investment-related activities.
This dual role—serving both as a registered representative for broker-dealers while simultaneously operating his own financial advisory business—creates potential conflicts of interest that warrant scrutiny, particularly in light of the numerous customer complaints.
Red Flags & Warning Signs of Broker Misconduct
The allegations against George Terlizzi highlight several red flags that investors should be vigilant about when working with financial professionals:
1. Concentration in Alternative Investments
Multiple complaints allege that Terlizzi recommended high concentrations of illiquid, complex alternative investments such as non-traded REITs, limited partnerships, and business development companies. These products typically carry higher commissions for brokers but subject investors to greater risks, including lack of liquidity and transparency.
2. Pattern of Similar Complaints
The consistent nature of the allegations across multiple customers—focusing on unsuitable recommendations of similar alternative investment products—suggests a potential pattern of problematic sales practices rather than isolated incidents.
3. Failure to Conduct Due Diligence
Several complaints allege that Terlizzi failed to perform adequate due diligence on the investment products he recommended. Thorough due diligence is a fundamental obligation for financial professionals recommending investment products to their clients.
4. Misrepresentations and Omissions
Allegations of misrepresentations and omissions of material facts suggest that clients may not have been fully informed about the risks, costs, or characteristics of the investments they purchased through Terlizzi.
5. Breach of Fiduciary Duty
Claims of breach of fiduciary duty indicate concerns that Terlizzi may have prioritized his own interests (through higher commissions or other compensation) over the best interests of his clients.
Legal & Regulatory Framework
The allegations against George Terlizzi implicate several key securities regulations and industry standards:
FINRA Rule 2111: Suitability
This cornerstone rule requires that brokers have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer based on the customer’s investment profile. This profile includes the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, and risk tolerance.
FINRA Rule 2020: Use of Manipulative, Deceptive or Other Fraudulent Devices
This rule prohibits members from effecting transactions in, or inducing the purchase or sale of, any security by means of any manipulative, deceptive, or other fraudulent device or contrivance.
FINRA Rule 2010: Standards of Commercial Honor and Principles of Trade
This broad ethical standard requires all members to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business. Recommending unsuitable investments could violate this standard.
FINRA Rule 3110: Supervision
This rule requires brokerage firms to establish and maintain a system to supervise the activities of their associated persons that is reasonably designed to achieve compliance with applicable securities laws and regulations. The numerous complaints raise questions about the supervision Terlizzi received at his employing firms.
Securities Exchange Act of 1934
Section 10(b) and Rule 10b-5 thereunder prohibit fraudulent and deceptive practices in connection with the purchase or sale of securities, including making untrue statements of material fact or omitting to state material facts necessary to make statements not misleading.
Guidance for Affected Investors
If you were a client of George Terlizzi at either Kalos Capital, Inc. or Arkadios Capital, and particularly if you were recommended alternative investments such as non-traded REITs, limited partnerships, or business development companies, there are several important steps you should take:
1. Review Your Investment Portfolio
Carefully examine your account statements and investment holdings, paying particular attention to:
- The percentage of your portfolio allocated to alternative investments
- The performance of these investments relative to broader market benchmarks
- The fees and costs associated with these investments
- Any restrictions on your ability to liquidate or sell these investments
2. Gather Documentation
Collect all relevant documents related to your investments, including:
- Account opening documents
- Investment prospectuses and offering materials
- Account statements
- Trade confirmations
- Written communications (emails, letters) with Terlizzi
- Notes from phone conversations or meetings
3. Assess Potential Damages
Work with an independent financial professional to determine if:
- The investments were suitable for your stated investment objectives, risk tolerance, and financial situation
- You suffered financial losses that could have been avoided with more appropriate investment recommendations
- The risks and characteristics of the investments were adequately disclosed to you
4. Understand Time Limitations
Be aware that there are strict time limitations for filing claims regarding investment losses:
- FINRA arbitration claims generally must be filed within six years of the events giving rise to the dispute
- State securities laws may have different statutes of limitations
- Delayed action could result in the loss of your right to pursue recovery
5. Explore Recovery Options
Depending on your situation, you may have several potential avenues for recovery:
- FINRA arbitration against the brokerage firm (Kalos Capital or Arkadios Capital)
- Complaints to state securities regulators
- In some cases, class action lawsuits involving the specific investment products
How Our Securities Fraud Attorneys Can Help
Our investment fraud attorneys specialize in helping investors recover losses caused by unsuitable investment recommendations and other forms of broker misconduct. We offer:
Comprehensive Case Evaluation
We provide a thorough analysis of your investment portfolio and transactions to identify potential violations of securities laws and regulations, as well as quantify your recoverable damages.
FINRA Arbitration Expertise
Our attorneys have extensive experience representing investors in FINRA arbitration proceedings, which is the primary forum for resolving disputes between investors and their brokers or brokerage firms.
Alternative Investment Knowledge
We have specific expertise in cases involving complex alternative investments such as non-traded REITs, limited partnerships, business development companies, and other illiquid investment products that have been at the center of complaints against Terlizzi.
Contingency Fee Representation
We handle investment fraud cases on a contingency fee basis, meaning you pay no legal fees unless we recover money for you. This aligns our interests with yours and makes quality legal representation accessible regardless of your financial situation.
Results-Oriented Approach
Our team focuses on achieving the best possible outcome for our clients, whether through negotiated settlements or formal arbitration proceedings. We have a strong track record of recovering investment losses for our clients.
If you’ve experienced losses while working with George Terlizzi or have concerns about investments he recommended, don’t hesitate to seek professional advice. Reach out today by calling 800-950-6553 to schedule a confidential, no-obligation consultation with our experienced securities fraud attorneys.
