Edward Beyn accused of churning
Former New York broker, Edward Beyn, has been accused by the Financial Industry Regulatory Authority (FINRA) of churning.
According to Investment News, FINRA alleges Beyn collected more than $1.7 million in commissions and fees by excessively trading customer accounts. Between March 2012 and May 2015 Beyn allegedly churned the accounts of six client’s while registered at Craig Scott Capital.
In the pending disclosure event on Beyn’s BrokerCheck report, FINRA alleges that Beyn exercised control over the client accounts who believed that he had their best intrests at heart. Despite receiving monthly account statements, the pace and volume at which trading was executed made it difficult for clients to follow. The report alleges” Beyn abused their trust by excessively and fraudulently trading the accounts.”
Investment News reports that the clients were all over 60 and suffered net losses.
Churning claims arise out of the inherent conflict of interest involved because a financial advisor is compensated by commissions earned in buying and selling securities on behalf of a client. As long as financial advisors are compensated by commissions, the unscrupulous ones will continue to attempt to enrich themselves by excessively trading accounts.
When this happens, a FINRA arbitration claim against the financial advisor or the financial advisor’s employer is often the best way to recover the damages incurred as a result of the broker’s excessive trading.
Churning claims can be complex and sometimes difficult to prove. Brokerage firm almost always hire experience securities defense firms to defend them in these claims. If you believe that you are the victim of churning by your brokerage firm or financial advisor, it is recommended that you consult with an experienced securities attorney. For a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors throughout the country in FINRA arbitration claims against their brokerage firm.