Churning (Excessive Trading)

Broker James Hart in Raymond James & Associates, Inc. Firm Has Customer Complaint

February 6, 2025 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker James Hart (Hart), currently associated with Raymond James & Associates, Inc., has been subject to at least one disclosable event. These events include one customer complaint. Several of those complaints against Hart concern allegations of high frequency trading activity also referred to as churning or excessive trading among other securities laws violations.

FINRA BrokerCheck shows a pending customer complaint on June 13, 2024.

Client’s guardian alleges client’s account is not being managed in the best interests of an elderly client and or is being charged excessive fees.

There are Recent Customer Complaints with Broker Heidi Chamberlain in Firm Morgan Stanley

February 5, 2025 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Heidi Chamberlain (Chamberlain), currently associated with Morgan Stanley, has been subject to at least one disclosable event. These events include one customer complaint. Several of those complaints against Chamberlain concern allegations of high frequency trading activity also referred to as churning or excessive trading among other securities laws violations.

FINRA BrokerCheck shows a pending customer complaint on December 09, 2024.

Customers allege unauthorized purchases and sales of assets, excessive transactions or excessive commissions, inappropriate asset purchases, and lack of analysis as to appropriate assets to purchase, during the timeframe of 2019 through 2024.

There are Recent Customer Complaints with Broker William Cooke in Firm Raymond James Financial Services, Inc.

February 5, 2025 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker William Cooke (Cooke), previously associated with Raymond James Financial Services, Inc., has been subject to at least one disclosable event. These events include one customer complaint. Several of those complaints against Cooke concern allegations of high frequency trading activity also referred to as churning or excessive trading among other securities laws violations.

FINRA BrokerCheck shows a pending customer complaint with a damage request of $72,156.06 on December 16, 2024.

Complaint from the financial advisor’s spouse alleges he placed excessive trades, entered two unauthorized trades and signed her name on two documents to move the cash from her ira.

There are Recent Customer Complaints with Broker Marvin Bergstrom in Firm Crescent Securities Group, Inc.

February 5, 2025 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Marvin Bergstrom (Bergstrom), previously associated with Crescent Securities Group, Inc., has been subject to at least one disclosable event. These events include one customer complaint. Several of those complaints against Bergstrom concern allegations of high frequency trading activity also referred to as churning or excessive trading among other securities laws violations.

FINRA BrokerCheck shows a pending customer complaint with a damage request of $100,000.00 on December 16, 2024.

Unsuitability, concentration, excessive transactions, misrepresentations or omissions, breach of fiduciary duty, gross lack of supervision. Events leading to the allegations are unknown. Customer did not contact the firm prior to filing arbitration, nor did she make any effort to alert the firm to her grievances. Customer has had very little activity since 2022. Accounts opened in April – May of 2019. Representative Bergstrom not named as respondent, only firm.

Gana Weinstein Represents Victims of Financial Advisor Stewart Ginn

February 5, 2024 | by Staff Attorney

The attorneys at Gana Weinstein LLP are currently representing victims of financial advisor Stewart Ginn (Ginn), currently employed by Independent Financial Group, LLC (IFG). BrokerCheck records reports that Ginn has been subject to at least six customer complaints during the course of his career and one pending regulatory action. According to records kept by The Financial Industry Regulatory Authority (FINRA), Ginn’s customer complaint alleges that Gin engaged in excessive trading or churning of investor accounts among other allegations of misconduct relating to the handling of their accounts.

On October 17, 2023 FINRA named Ginn as a respondent in a complaint alleging that he churned and excessively traded customer accounts. FINRA alleges that none of the customers was an aggressive investor, one of the customers was in her late 80s and suffering from a cognitive disability; a second retired customer was in her late 70s; and a third retired customer was between 69 and 71 years old. FINRA found that Ginn engaged in frequent in-and-out trades in the customer accounts, while charging high commissions on both buys and sells. According to the complaint, Ginn’s trading caused the customers to incur realized losses of more than $2.22 million, while generating more than $2.24 million in commissions for Ginn and his member firm.

Securities Arbitration – The Basics: What you need to know.

February 23, 2023 | by Staff Attorney

Securities arbitration is a method of resolving disputes between investors and their brokers or brokerage firms, which is governed by the Financial Industry Regulatory Authority (FINRA). FINRA is a self-regulatory organization that oversees the securities industry and provides a forum for resolving disputes between investors and their brokers or brokerage firms.

Securities arbitration through FINRA is a legal process that allows investors to seek redress for claims arising out of their investment accounts, such as fraud, breach of fiduciary duty, unsuitable investment recommendations, selling away or other misconduct. Securities arbitration is generally faster and less expensive than going to court, and the decision of the arbitrator is final and binding on both parties. It is important for investors to understand their rights and legal options if they believe they have been the victim of misconduct by their broker or brokerage firm.

To initiate a securities arbitration through FINRA, an investor must file a Statement of Claim with FINRA, which sets forth the facts and legal basis for the claim. The Statement of Claim must be filed within six years from the occurrence or event giving rise to the claim. However, the occurrence or event that gives rise to a claim is usually considered the date of damages, or the date a reasonable investor knew or should have known about the claim. While brokerage firms usually argue it is the date of purchase, most arbitration panels disagree with that analysis.

Advisor Anthony Tricario Accused of Churning and Sanctioned By Financial Regulator

January 22, 2023 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Anthony Tricario (Tricario), formerly associated with Aegis Capital Corp. (Aegis), has been subject to at least three customer complaints and three regulatory complaints during his career. Several of those complaints against Tricario concern allegations of high frequency trading activity also referred to as churning or excessive trading among other securities laws violations.

In January 2021, FINRA suspended Tricario, finding that he consented to findings that he executed trades in customers’ accounts that were excessive and quantitatively unsuitable given the customers’ investment profiles. Tricarico’s trading in the accounts of three of his firms’ customers generated high cost-to-equity ratios and turnover rates as well as significant losses and commissions. Continue Reading

James Pecoraro Sanctioned by Regulator Over Excessive Trading

October 4, 2022 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker James Pecoraro (Pecoraro), associated with Spartan Capital Securities, LLC (Spartan Capital) has been subject to at least 11 customer complaint, six regulatory actions, and one judgement or liens during his career. Some of the complaints against Pecoraro concern allegations of high frequency trading activity also referred to as churning or excessive trading among other securities laws violations.

In August 2022, FINRA found Pecoraro consented to sanctions and findings that he excessively traded in customers’ accounts. FINRA found that Pecoraro recommended a pattern of high-cost and high-velocity trading in the customers’ accounts. FINRA alleged that Pecoraro’s customers routinely followed his recommendations and exercised de facto control over their accounts. The findings state that Pecoraro effected a total of 325 trades resulting in annual turnover rates ranging from 13.47 to 57.97 and annualized cost-to-equity ratios ranging from 57.58 percent to 175.19 percent. FINRA found that Pecoraro’s trading was excessive and unsuitable for the customers’ investment profiles and the customers suffered losses of $166,018, total trading costs of $184,053, and commissions of $165,437.

William Athas of SW Financial Sanctioned By FINRA Over Churning

September 8, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that broker William Nicholas Athas (Athas), currently employed by SW Financial has been subject to at least nine customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Athas’s customer complaints alleges that Athas recommended unsuitable investments in various investments among other allegations of misconduct relating to the handling of their accounts.

In January 2022, FINRA barred Athas finding that Athas willfully violated Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder and violated FINRA Rule 2020 by churning customer accounts.

In May 2020, a customer complained that Athas violated the securities laws by alleging that Athas engaged in unsuitable trading, common law fraud, churning. The claim alleges $84,932.35 in damages and is currently pending.

In January 2017, a customer complained that Athas violated the securities laws by alleging that Athas engaged in misrepresentations, breach of fiduciary duty, breach of contract, negligence, unauthorized trading, and violations of Texas State Securities Act. The damage amount requested was $290,000. The claim settled in the amount of $95,000.

In July 2011, a customer complained that Athas violated the securities laws by alleging that Athas engaged in churning and excessive trading. The damage amount requested was $100,000. The claim settled in the amount of $10,000.

Christian Lucchetto Suspended by FINRA Over Excessive Trading

September 6, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that broker Christian Frank Lucchetto (Lucchetto), currently employed by Arive Capital Markets has been subject to at least one regulatory action and one criminal action during the course of his career.

In January 2021, Lucchetto faced a regulatory action commenced by FINRA. Lucchetto consented to the entry of findings that he engaged in unsuitability and excessive trading in his customer’s account. The sanctions included $5,000 in civil penalties and administrative fines, as well as $30,454.86 in restitution. Additionally, FINRA suspended Lucchetto in all capacities from February 2021 through May 2021.