FINRA Suspends Former Merrill Lynch and Oppenheimer Broker Zachary Taylor for Nine Months Over Reg BI and Suitability Violations

FINRA Sanctions Zachary Taylor

The Financial Industry Regulatory Authority (FINRA) has suspended former Merrill Lynch and Oppenheimer broker Zachary Ellis Taylor (CRD #6074776) for nine months in all capacities after finding that he willfully violated federal securities laws and FINRA rules.

According to a FINRA settlement order (No. 2022075083801), between August 2020 and June 2023, while registered with Oppenheimer & Co. Inc., Taylor recommended that at least three senior customers with balanced allocation objectives and moderate risk tolerances invest in speculative options strategies. Specifically, he recommended that these investors sell large volumes of higher-risk put options contracts in high-volatility technology stocks.

When those put options were assigned, the customers suffered significant losses. FINRA found that Taylor’s recommendations were:

• Unsuitable for his customers given their investment profiles.
• Not in the customers’ best interest under Regulation Best Interest (Reg BI), which has been in effect since June 30, 2020.
• In violation of FINRA Rule 2360(b)(19)(A) (options conduct) and FINRA Rule 2010 (standards of commercial honor).

Importantly, FINRA noted that Taylor’s violations were willful under Section 15(l)(a)(1) of the Securities Exchange Act of 1934. Due to his demonstrated inability to pay, FINRA did not impose a monetary fine, but his suspension is effective for nine months.

👉 Read the full FINRA settlement here: FINRA AWC – Zachary Taylor

Termination from Oppenheimer

On June 2, 2023, Oppenheimer discharged Taylor, citing that he “was unable to provide sufficient documentary evidence to support his contention that he had authority for all trades in a client’s account.” This disclosure raises serious concerns regarding unauthorized trading, which can expose investors to losses without their consent.

History of Customer Complaints

Taylor’s FINRA BrokerCheck record reveals a troubling history. Since April 2022, he has been the subject of four customer disputes. According to BrokerCheck, these complaints alleged misconduct related to unsuitable recommendations and improper options trading strategies.

👉 Review his BrokerCheck record here: FINRA BrokerCheck – Zachary Taylor

A broker with multiple customer disputes and a regulatory suspension is a major red flag. FINRA itself advises investors to carefully review BrokerCheck disclosures before working with a financial professional.

Violations of Suitability and Regulation Best Interest

The misconduct described in FINRA’s order involves classic suitability and Reg BI violations.

• Under FINRA’s suitability standard, brokers must recommend investments that fit the customer’s objectives, financial situation, and risk tolerance.
• Under Reg BI, brokers must go a step further and ensure that all recommendations are in the customer’s best interest, not driven by the broker’s potential compensation.

Recommending that elderly or moderate-risk investors sell risky put options in volatile technology stocks violates both of these standards. Such trades expose customers to potentially unlimited downside risk and are wholly inconsistent with conservative investment objectives.

What This Means for Affected Investors

If you invested with Zachary Taylor at Oppenheimer or Merrill Lynch, and you suffered losses in speculative options strategies or trades you did not authorize, you may have legal claims.

Brokerage firms like Oppenheimer and Merrill Lynch are obligated to supervise their brokers and ensure that recommendations comply with suitability and Reg BI obligations. When they fail, both the broker and the firm can be held liable in FINRA arbitration, the forum where most investor claims are resolved.

Iorio Law PLLC: Helping Investors Recover Losses

At Iorio Law PLLC, we exclusively represent investors—not brokers or firms—in claims involving securities fraud, unsuitable investments, and financial advisor misconduct. Our founder, August M. Iorio, has recovered nearly $100 million for investors nationwide, including landmark victories such as the first FINRA arbitration award against Robinhood.

We regularly handle cases involving:

• Unsuitable investment recommendations
• Unauthorized trading
• Options strategy losses
• Failure to supervise
• Breach of fiduciary duty

We work on a contingency-fee basis—you pay nothing unless we recover money for you.

Call to Action: Protect Your Rights

If you or a loved one suffered losses in accounts handled by Zachary Taylor at Merrill Lynch or Oppenheimer, contact Iorio Law PLLC today. Time limits apply to FINRA arbitration claims, so it is important to act quickly.

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
📍 Location: One World Trade Center, 85th Floor, New York, NY 10007
🖊️ Free Case Review: Contact Form

Free & confidential case evaluation. No recovery, no fee.