The White Law Group

MENU
  • Securities Litigation
    • Securities Fraud
    • Securities Employment
    • Common Claims
    • FAQ
  • Attorneys
  • Publications
  • Blog
    • Securities Fraud
    • Current Investigations
    • Podcasts
  • Contact Us

Call Now for a Free Consultation
(888) 637-5510

March 29, 2017 Comments (0) Blog, Securities Fraud

SEC Alert on Red flags of excessive trading, churning

churning

NY Brokers charged the same day in churning scheme

The Securities and Exchange Commission issued an investor alert In January warning investors about excessive trading and churning in brokerage accounts the same day it charged two New York brokers with benefiting themselves in such a scheme.

The SEC’s complaint alleges that Gregory Dean and Donald Fowler performed no reasonable diligence to determine whether their investment strategy involving allegedly frequent buying and selling of securities could deliver even a minimal profit for their customers.

According to the SEC release, the brokers were charged with fraudulently using an “in-and-out” trading strategy that was allegedly unsuitable for customers in order to generate large commissions. Their strategy, which reportedly generally involved selling the securities within a week or two of purchase and charging customers a commission for each transaction, allegedly resulted in substantial losses for 27 customers, according to the SEC complaint.

According toFINRA Broker Check, both Dean and Fowler have disciplinary histories. Nine of Dean’s customers filed Financial Industry Regulatory Authority arbitrations or complaints against him. Five arbitrations are pending; one customer claim was denied; and three claims were settled through payments to the customers.

Ten of Fowler’s customers filed FINRA arbitrations or complaints against him. Except for two arbitrations, which are pending, the arbitrations and complaints were settled through payments to the customers.

SEC’s Investor Alert

The investor alert told investors to look for these red flags that may indicate excessive trading

Unauthorized Trading – Be alarmed if you become aware of trades in your account that you did not authorize your broker to make.

Frequent Trading – Be wary of frequent in-and-out purchases and sales of securities that don’t seem consistent with your investment goals and risk tolerance.

Excessive Fees – Be suspicious if the total amount of fees seems high or if one segment of your portfolio consistently generates high fees.

The alert also points out that excessive trading can occur even if the overall account value increases, and that if account statements, trade confirmations, and online accounts do not disclose all fees, investors can find more information by asking their broker.

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 White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit http://www.churningattorney.com.

 

» account churning, broker churning, Chicago broker fraud attorney, Chicago FINRA attorney, Chicago investment fraud attorney, Chicago securities attorney, Chicago securities lawyer, churn & burn, churning, churning account, churning attorney, churning investigation, churning lawyer, churning losses, excessive commissions, excessive fees, excessive trades, excessive transactions, Financial Advisor, frequent trades, frequent trading, investment losses, Securities Attorney, Securities Lawyer, stockbroker churning, Vero Beach investment fraud attorney, Vero Beach securities attorney, Vero Beach securities lawyer

» Blog, Securities Fraud » SEC Alert on Red flags of excessive trading, churning

Related Posts

  • Raymond James Broker Gary Dodds Sanctioned for Churning/Excessive Trading, featured by top securities fraud attorneys, The White Law Group

    Raymond James Broker Gary Dodds Sanctioned for Churning/Excessive...

  • Jeffrey Fladell, Ex-RBC Capital Markets Suspended from Securities Industry, featured by top securities fraud attorneys, The White Law Group

    Jeffrey Fladell, Ex-RBC Capital Markets Suspended from Securities...

  • Ex-Morgan Stanley Financial Advisor Michael Barry Carter Sentenced to Prison, featured by top securities fraud attorneys, The White Law Group

    Ex-Morgan Stanley Financial Advisor Michael Barry Carter Sentenced...

  • Chad Mackland, Former MML Investors Services Broker Barred from Securities Industry, featured by top securities fraud attorneys, The White Law Group

    Chad Mackland, Former MML Investors Services Broker Barred...

Comments are closed.

THE WHITE LAW GROUP

Investment Losses?

Recent Posts

  • Griffin Capital Essential Asset REIT Lawsuits Investigation, featured by top securities fraud attorneys, The White Law Group

    Griffin Capital Essential Asset REIT Lawsuits Investigation

    April 12, 2021
  • CION Investment Corporation to List Shares, featured by top securities fraud attorneys, the White Law Group

    CION Investment Corporation to List Shares

    April 9, 2021
  • Lodging Fund REIT III Update on Investigation, featured by top securities fraud attorneys, The White Law Group

    Lodging Fund REIT III Update on Investigation

    April 6, 2021
  • Credit Suisse Securities Censured and Fined $345,000, featured by top securities fraud attorneys, The White Law Group

    Credit Suisse Securities Censured and Fined $345,000 

    April 6, 2021
(312) 238-9650 | Fax (312) 238-8950 | (888) 637-5510 | 125 S. Wacker Drive, Suite 300, Chicago, Illinois 60606

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement. © 2015 by The White Law Group, LLC All rights reserved.

© 2021 The White Law Group | Powered by Wordpress. Designed by Themnific