Placing your financial future in someone else’s hands requires a huge amount of trust. When that trust is broken by professional misconduct, it can leave you feeling worried and unsure of what to do next. For investors who worked with Former Equitable Advisors Broker Patrick Pistor (CRD# 7579589), recent news of his termination and subsequent FINRA suspension has raised serious concerns. He was let go for allegedly failing to disclose his outside business dealings, a violation that can put clients’ investments at risk. This guide is for anyone affected by this situation. We will explain what happened, why it matters, and what your legal options are for holding the responsible parties accountable.

Key Takeaways

A Broker’s Secret Side Business Puts You at Risk: When an advisor engages in outside business activities without their firm’s approval, your investments are not protected by the firm’s oversight, leaving you exposed to unvetted and potentially fraudulent schemes.
The Brokerage Firm is Also on the Hook: Firms have a legal duty to supervise their advisors. If they fail in this responsibility and you lose money, the firm itself can be held financially liable for your losses, not just the individual broker.
Verify Your Advisor and Know Your Rights: Proactively research any financial professional using FINRA’s free BrokerCheck tool. If you suspect misconduct, remember that you have the right to file a securities arbitration claim to recover your losses.

Who is Patrick Pistor?

Patrick Pistor (CRD# 7579589) is a financial advisor from New Braunfels, Texas, whose recent discharge from Equitable Advisors has raised serious concerns for his clients. He was terminated in February 2025, and the reasons behind his departure are something every investor who worked with him should understand. If you were one of his clients, looking into the details of his career and termination is the first step toward making sure your investments were managed correctly. This information can help you see the full picture and decide on your next steps.

Pistor’s History with Equitable Advisors

Patrick Pistor joined Equitable Advisors in 2021, but his time with the firm was cut short. In February 2025, he was fired for what the firm officially described as a “failure to comply with the Firm’s Outside Business Activity policy.” In simple terms, this means he was allegedly involved in business dealings outside of his work at Equitable Advisors without getting the required approval. This is a major red flag because unapproved outside business activities can create conflicts of interest, potentially putting your financial well-being at risk. This type of conduct can be a form of broker fraud and negligence.

A Look at His Professional Record

Before and during his time as a financial advisor, Patrick Pistor worked in several different fields. His professional background includes roles at USAA, SitePro, Oil and Gas Global Network, Lean Oilfield, LLC, and Seadrill Ltd. While a diverse resume isn’t unusual, it’s always important for investors to be aware of their advisor’s complete professional history. These outside interests can sometimes intersect with their duties to clients in unexpected ways. If you have any questions about how his background may have impacted the advice you received or the handling of your accounts, you can contact us for a confidential conversation.

Why Was Pistor Discharged from Equitable Advisors?

When a financial advisor is terminated by their firm, it’s a serious event that often points to underlying issues. In the case of Patrick Pistor, his discharge from Equitable Advisors wasn’t due to a minor disagreement; it stemmed from multiple allegations of professional misconduct. These actions put his clients’ financial security at risk and violated industry regulations designed to protect investors. Understanding the specific reasons for his termination can help you recognize similar red flags and protect your own investments from potential harm. The details surrounding his departure highlight serious breaches of policy, trust, and regulatory rules.

Allegations of Outside Business Activities

Financial advisors are required by the Financial Industry Regulatory Authority (FINRA) to disclose any business activities they conduct outside of their work for the brokerage firm. These are known as Outside Business Activities, or OBAs. This rule exists to prevent conflicts of interest and ensure that advisors aren’t steering clients toward unapproved, high-risk ventures. Patrick Pistor was allegedly terminated for failing to comply with these critical disclosure rules. When an advisor hides their outside business dealings, they may be involved in investment issues that haven’t been vetted by their firm, leaving investors exposed to potential fraud without the firm’s oversight.

Failure to Comply with Firm Policies

Equitable Advisors officially stated that Pistor was discharged for his “failure to comply with the Firm’s Outside Business Activity policy.” This isn’t just a simple administrative issue; it’s a direct violation of the internal rules that are in place to safeguard clients. Brokerage firms have a legal duty to supervise their employees, and these policies are a fundamental part of that responsibility. An advisor who ignores firm policies demonstrates a disregard for the established system of checks and balances. This type of broker fraud and negligence can create an environment where misconduct can occur without detection, directly harming the investors who trust them.

Concerns Over Privacy and Account Access

Perhaps one of the most troubling allegations against Patrick Pistor involves claims that he improperly accessed client accounts and violated privacy norms. Your financial information is incredibly sensitive, and advisors are bound by strict rules governing how they can access and use it. Any unauthorized access is a major breach of trust and a violation of industry regulations. This kind of behavior can open the door to unauthorized trades, identity theft, or other fraudulent activities. If you believe your account has been compromised, it’s important to take action quickly. You may have legal options, such as filing a claim through securities arbitration, to hold the responsible parties accountable.

FINRA’s Regulatory Action Against Pistor

When a broker is discharged under a cloud of suspicion, the Financial Industry Regulatory Authority (FINRA) often steps in to investigate. FINRA is the self-regulatory organization that oversees the securities industry, and its job is to protect investors. In Patrick Pistor’s case, his termination from Equitable Advisors triggered a regulatory inquiry that led to serious consequences. The actions taken by FINRA highlight the importance of industry rules designed to safeguard your investments from potential broker fraud and negligence. When a broker fails to cooperate with regulators, it raises significant questions about their conduct and what they might be trying to hide. This lack of transparency is a major red flag for investors and the industry alike. Understanding FINRA’s role and the actions it took against Pistor can help you see why holding brokers accountable is so critical.

Key Findings from the Investigation

The investigation into Patrick Pistor centered on the same issues that led to his termination: his alleged failure to disclose outside business activities. FINRA rules require brokers to report any business they conduct outside of their brokerage firm. This rule exists to prevent conflicts of interest and ensure the firm can properly supervise its representatives. According to public records, Pistor was allegedly terminated for not complying with these disclosure rules. When FINRA began its own investigation to get to the bottom of these allegations, it ran into a wall. The core issue became Pistor’s unwillingness to cooperate with the regulatory body.

Details of the FINRA Suspension

Because Patrick Pistor allegedly failed to respond to FINRA’s requests for information, the regulator took decisive action. As of July 11, 2025, he was indefinitely suspended from the securities industry. An indefinite suspension means he cannot associate with any FINRA member firm in any capacity. Essentially, he is barred from the industry unless he complies with the investigation. This is a serious disciplinary action reserved for individuals who obstruct regulatory proceedings. For investors, this suspension confirms that the regulator found his lack of cooperation to be a severe violation of industry standards.

Specific Regulatory Violations

The primary regulatory violation cited by FINRA was Pistor’s failure to provide requested information. Under FINRA Rule 8210, all registered brokers are required to provide information and testimony when requested by the regulator. Refusing to cooperate is a violation in itself, regardless of the underlying allegations. This failure to respond often suggests that the broker may have something to conceal. When investors are harmed by misconduct, this type of regulatory action can become a key piece of evidence in a securities arbitration claim to recover losses. It demonstrates a clear breach of professional duties.

How Investors Are Affected and How to Recover Losses

Learning that your financial advisor has been disciplined by regulators can be incredibly unsettling. When you entrust someone with your financial future, you expect them to act with integrity. If you invested with Patrick Pistor, you might be worried about your portfolio and wondering what to do next. It’s important to know that if you suffered losses due to his advice or actions, you have rights and there are established pathways to recover your money. The key is to understand your options and take deliberate, informed steps to protect your interests. This isn’t just about the money; it’s about holding professionals accountable and reclaiming your financial security.

Understanding Your Potential Financial Losses

If you lost money while working with Patrick Pistor, it’s crucial to understand that you may be able to get it back. These aren’t just market fluctuations; they are potential losses tied directly to a broker’s misconduct. The first step is to review your account statements and correspondence to get a clear picture of the financial damage. Cases of broker fraud and negligence often involve unsuitable recommendations or unauthorized activities that harm an investor’s portfolio. Recognizing that these losses may be recoverable is the first step toward taking action and seeking the compensation you deserve for the harm you’ve suffered.

What is the FINRA Arbitration Process?

For many investors, the primary path to recovering losses is through the Financial Industry Regulatory Authority (FINRA) arbitration process. Think of it as a specialized legal forum designed to resolve disputes between investors and their brokerage firms. It’s generally more efficient and less formal than a traditional court trial. In a securities arbitration claim, you present your case to an impartial arbitrator or panel who will hear the evidence and issue a binding decision. This process provides a structured and legally recognized way for investors to hold brokers and firms accountable and seek restitution for their financial losses.

Your Legal Options for Recovery

When a broker acts improperly, they can be held personally accountable. But the responsibility often extends to their employer. Brokerage firms like Equitable Advisors have a legal duty to supervise their employees to ensure they comply with industry rules and regulations. If a firm fails in this duty, it can be held liable for an investor’s losses. This “failure to supervise” is a common claim in arbitration cases. It means your legal options aren’t limited to the individual broker; you can also pursue a claim against the firm for its lack of oversight, which is one of many investment issues that can arise.

What Documents Do You Need to Get Started?

If you believe you have grounds for a claim, preparation is key. Start by gathering all documents related to your investments with Patrick Pistor. This includes account statements, trade confirmations, new account forms, and any written or electronic correspondence you had with him, such as emails or text messages. If you took notes during your conversations, those are valuable, too. Having this documentation organized will help build a strong foundation for your case. Once you have your documents together, the next step is to contact us to have an experienced securities attorney review your situation and explain your options.

The Brokerage Firm’s Responsibility to Supervise

You might think your relationship is just with your financial advisor, but the brokerage firm they work for plays a huge role in protecting your investments. These firms aren’t just a name on the letterhead; they have a fundamental, legally-mandated duty to supervise their brokers. This oversight is one of the most important safeguards for investors. When a firm fails to monitor its employees’ actions, it can be held accountable for the harm that follows.

This responsibility covers everything from the advice a broker gives to their communications with clients and even their activities outside of the firm. The system is designed to catch red flags and stop misconduct before it leads to significant financial losses for investors. If a firm’s supervision is lax, it creates an environment where negligence and even outright fraud can occur, leaving clients vulnerable. Understanding this dynamic is key if you suspect you’ve been a victim of investment misconduct.

Monitoring a Broker’s Outside Activities

Brokers sometimes engage in business ventures outside of their work at the brokerage firm. These are known as “outside business activities,” or OBAs. While not always problematic, they can create serious conflicts of interest. To manage this risk, FINRA Rule 3270 requires brokers to provide written notice to their firm about any OBAs. The firm must then review these activities to ensure they don’t compromise the broker’s responsibilities to their clients or put investor funds at risk. This rule exists to prevent brokers from steering clients toward unapproved, private investments where the firm has no oversight and the investor has little protection.

A Firm’s Compliance Duties

A brokerage firm’s duty goes beyond simply receiving notice of a broker’s outside activities. They must have strong compliance systems in place to actively monitor, supervise, and, if necessary, prohibit activities that could harm investors. As seen in the case of Patrick Pistor, who was discharged for failing to comply with his firm’s OBA policy, firms are expected to enforce these rules. When a firm neglects this duty, it can be held responsible for instances of broker fraud and negligence. This accountability is a cornerstone of investor protection, ensuring that firms are motivated to maintain a culture of compliance and ethical conduct among their advisors.

How Firms Are Supposed to Protect Investors

When a broker’s misconduct causes you to lose money, the broker isn’t the only one who may be at fault. If their firm failed in its duty to supervise them, the firm itself can be held liable for your losses. This is a legal claim known as “failure to supervise.” It means the firm either didn’t have adequate supervisory procedures, or it had them but failed to follow them. For investors, this is a critical path to recovery. Pursuing a claim against the brokerage firm, often through securities arbitration, can be more effective than going after an individual broker, as the firm typically has the financial resources to cover the losses.

How to Protect Your Investment Rights

Knowing your rights is the first step toward safeguarding your financial future. When you entrust your money to a broker, you have a right to expect they will act in your best interest. Unfortunately, that doesn’t always happen. Being proactive and informed can make a significant difference. This means doing your homework before you invest, paying close attention to your accounts and your broker’s behavior, and knowing what to do if something feels wrong. Taking these steps helps you stay in control of your investments and provides a clear path forward if you need to address misconduct.

Steps for Investor Due Diligence

Before working with any financial professional, it’s essential to do some research. A great starting point is FINRA’s BrokerCheck tool. This free resource allows you to look up information about brokers and investment advisors, including their employment history, licenses, and any customer disputes or disciplinary actions. You can use BrokerCheck to find details about financial professionals and their firms. Reviewing this report can give you valuable insight into who you’re trusting with your money and help you make a more informed decision from the very beginning. It’s a simple check that can save you a lot of trouble down the road.

Recognizing Red Flags in Broker Behavior

Keep an eye out for warning signs that could indicate a problem. For instance, Equitable Advisors disclosed that Patrick Pistor was “discharged for failure to comply with the Firm’s Outside Business Activity policy.” This is a significant red flag. Brokers must disclose and get approval for any business they conduct outside of their firm. Other warning signs of broker fraud and negligence include pressure to make quick decisions, promises of guaranteed high returns, or unauthorized trades. Pistor was also accused of improperly accessing client accounts, which is a serious violation of privacy and industry rules. Always question activity that seems unusual or secretive.

How to Report Securities Misconduct

If you believe you’ve lost money due to your broker’s actions, you have options. You don’t have to accept the loss without a fight. For many investors, the path to recovering funds is through a process called FINRA arbitration. This is a formal dispute resolution process that is often faster and less expensive than going to court. If you lost money because of a broker like Patrick Pistor, you might be able to get it back through a securities arbitration claim. This process allows you to present your case before a neutral arbitrator who will decide the outcome.

When to Work with a Securities Attorney

While you can file a claim on your own, the arbitration process can be complex. Working with an attorney who focuses on investment fraud can make a substantial difference. When a financial advisor violates securities laws, they may face serious legal and regulatory consequences, and a lawyer can help you hold them accountable. An attorney can gather evidence, build your case, and represent you throughout the process. If you suspect you have been a victim of broker misconduct, it’s a good idea to contact a securities attorney to discuss your situation and understand your legal options for recovery.

What Are a Broker’s Compliance Duties?

When you entrust your money to a financial advisor or broker, you’re doing more than just hiring someone to manage your portfolio. You’re placing your financial future in their hands, and with that comes a set of serious responsibilities on their part. Brokers operate in a highly regulated industry for a reason: to protect you, the investor. These regulations, often set by the Financial Industry Regulatory Authority (FINRA), outline a broker’s compliance duties—the specific rules they must follow to ensure they act ethically and in your best interest.

These duties aren’t just suggestions; they are mandatory requirements that govern everything from the investments they recommend to how they communicate with you. A broker’s primary obligation is to their client. This means they must have a reasonable basis for believing their recommendations are suitable for you based on your financial situation, goals, and risk tolerance. When a broker fails to meet these standards, whether through negligence or intentional misconduct, they can cause significant financial harm. Understanding these core duties is the first step in recognizing when a line has been crossed and knowing when you need to take action to protect your assets. If you suspect any form of broker fraud or negligence, it’s important to know your rights.

Key FINRA Rules Every Broker Must Follow

FINRA has established a comprehensive set of rules to govern the conduct of brokers and their firms. One of the most critical rules involves transparency about a broker’s activities outside of their firm. As one report notes, “Financial advisors must get permission from their company before doing any business outside of their regular job. This is a rule called FINRA Rule 3270.” This rule on Outside Business Activities (OBAs) is designed to prevent conflicts of interest and ensure that a broker’s side ventures don’t compromise their duties to clients. It requires brokers to disclose and get approval for any business they conduct away from their brokerage firm, giving the firm a chance to supervise these activities and protect investors from unapproved and potentially risky schemes.

A Broker’s Duty to Disclose Information

A broker’s duty to disclose information is fundamental to maintaining a transparent and trustworthy relationship with their clients. This goes hand-in-hand with the rules on outside business activities. Brokers must be upfront about any potential conflicts of interest, including any financial incentives they might receive for selling certain products. In the case of Patrick Pistor, he “was allegedly terminated for failing to comply with Outside Business Activity disclosure rules under FINRA guidelines.” This failure to disclose prevents the brokerage firm from properly supervising its employee and leaves investors in the dark about where their money might really be going. Full disclosure is a cornerstone of investor protection and is essential for addressing all types of investment issues.

Rules on Account Privacy and Access

Your financial information is sensitive and confidential, and there are strict rules in place to protect it. Brokers are prohibited from accessing or using your account information without proper authorization. Any deviation from these privacy standards is a serious breach of trust and a major red flag. For instance, Patrick Pistor “was accused of improperly accessing client accounts and violating privacy norms, which are critical components of financial industry regulations.” Unauthorized access can lead to a host of problems, from identity theft to fraudulent transactions. If you ever notice unusual activity or suspect your broker is accessing your account improperly, it’s crucial to address the situation immediately. You can contact us to discuss your concerns and understand your legal options.

Frequently Asked Questions

My financial advisor was Patrick Pistor. What is the first thing I should do? The first step is to gather all the documents related to your accounts. This includes your monthly statements, trade confirmations, and any emails or notes from your conversations with him. Reviewing these materials will give you a clearer picture of your financial situation. Once you have everything organized, the next step is to have a professional review your case to determine if your portfolio was handled improperly.

What does “failure to disclose outside business activities” actually mean for my investments? In simple terms, it means an advisor is involved in a side business and hasn’t told their firm about it. This is a serious issue because it creates a conflict of interest. The advisor might steer you toward an investment that benefits their outside business instead of your financial goals. Because the firm doesn’t know about it, that investment hasn’t been vetted or approved, leaving your money without the firm’s oversight and protection.

Can I hold Equitable Advisors responsible for what Pistor did? Yes, you may be able to. Brokerage firms have a legal duty to supervise their advisors to ensure they follow industry rules. If a firm’s oversight is weak and an advisor’s misconduct harms clients, the firm can be held liable for what’s known as “failure to supervise.” This means your claim for recovering losses could be directed at the firm, not just the individual advisor.

How can I tell if my investment losses are recoverable? Recoverable losses are typically tied to specific misconduct, not just general market downturns. If your losses stem from unsuitable investment recommendations that didn’t match your risk tolerance, unauthorized trades, or investments connected to Pistor’s unapproved outside business dealings, you may have a strong case. An experienced securities attorney can analyze your account activity to help distinguish between normal market risk and losses caused by negligence or fraud.

What is FINRA arbitration and why is it the recommended path? FINRA arbitration is a formal process for resolving disputes between investors and brokerage firms, acting as an alternative to a traditional court trial. It’s generally more efficient and is handled by impartial arbitrators who are knowledgeable about securities rules. For most investors, the agreements they sign when opening a brokerage account require them to use arbitration to settle disputes, making it the standard and primary venue for recovering investment losses.

Patrick Pistor (CRD# 7579589): What Investors Need to Know