FINRA recently announced that Sean Francis Sheridan (a financial advisor based in Oakhurst, New Jersey) has been barred from association with any FINRA member in any capacity. According to the announcement, without admitting or denying the allegations, Sheridan consented to the entry of findings that he recommended and effected unsuitable mutual fund switches in customers’ accounts. The findings stated that Sheridan only recommended Class A mutual fund shares to the customers, resulting in them having to pay additional sales charges with each new purchase. Sheridan also allegedly engaged in the short-term trading of mutual fund positions in the customers’ accounts.
Additionally, the findings stated that Sheridan recommended and effected the transactions in the customers’ accounts without having reasonable grounds for believing that such transactions were suitable for the customers in view of the size and frequency of the transactions, the transactions costs incurred, and in light of the customers’ financial situations, investment objectives and needs.
Mutual fund switching is a hot bottom issue for regulators because of the difficulty for advisors to demonstrate that the switching was in the best interest of the client. The White Law Group is investigating the liability that Sheridan’s employers may have for failure to properly supervise these alleged activities.
If you suffered losses as a result of mutual fund switching and would like to speak with a securities attorney, please call The White Law Group at 312/238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on the firm, visit http://www.whitesecuritieslaw.com.