Churning

Churning Attorneys

Published on: November 13, 2024 | by Shepherd Smith Edwards & Kantas, LLP

When Excessive Trading Violates Regulation’s Best Interest

Broker-Dealer PHX Financial Accused of Costing Customers $1M

According to the Financial Industry and Regulatory Authority (FINRA), excessive trading is what happens when a registered financial professional recommends a large number of trades that are not in line with a customer’s investing goals. Instead, it is the financial advisor who benefits, usually in excess commissions earned. Another term for excessive trading is churning.

Churning Loss Attorneys

Published on: April 30, 2024 | by Shepherd Smith Edwards & Kantas, LLP

I’m An Investor. How Do I Know If I Am The Victim of Excessive Trading By My Broker?

Contact our Experienced Churning Loss Attorneys Today

Over the years, Shepherd Smith Edwards and Kantas Churning Loss Attorneys (investorlawyers.com) has represented many clients who have been the victims of excessive trading, which is also known as churning. This is what happens when a financial advisor makes too many trades in an investor’s account for the purposes of earning additional commissions and not because it is in the customer’s best interests.

Did Your Joseph Stone Capital Broker Excessively Trade in Your Account?

Published on: September 22, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Customers Who Are The Victims of Churning May Be Able To Recover Damages

The Financial Industry Regulatory Authority (FINRA) has ordered Joseph Stone Capital and a number of its registered representatives to pay $1M in restitution for allegedly excessively trading in customers’ accounts. This includes $825K in restitution from the broker-dealers and $211K from eight current and ex-Joseph Stone brokers, all of whom have been suspended.

Three Joseph Stone supervisors were also suspended for allegedly not doing enough to identify or address red flags warning of this purported broker misconduct. Two other Joseph Stone representatives were barred for not responding to FINRA’s requests for more information in its investigation.

Ex-Summit Brokerage Services Financial Advisor Francis Velten Barred Following Churning Allegations in Elderly Customers’ Accounts

Published on: August 5, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Former New Port Richey, FL broker is also accused of selling away

Francis Joseph Velten, most recently an Ameriprise Financial Services broker, is now barred by the Financial Industry Regulatory Authority (FINRA). He’s accused of churning in older investors’ accounts and encouraging them to surrender their annuities and mutual fund holdings to buy bonus annuities. This caused them to pay surrender fees while he earned commissions from the transactions.

Churning, which involves excessively trading in customer accounts, is one of the ways many brokers will try to earn additional money through resulting commissions and fees. Unfortunately, this can cause investors substantial losses, especially if done in excess.

Ex-Worden Capital Broker William Athas Accused of Excessive Trading That Cost Customers $1.1M

Published on: March 4, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Ex-NY Worden Capital Broker Barred After Allegedly Charging $1.6M in Commissions

The Financial Industry Regulatory Authority (FINRA) has barred ex-Worden Capital Management and former SW Financial registered representative, William Nicholas Athas. This bar comes in the wake of allegations that he engaged in excessive trading in customer accounts.

According to the self-regulatory organization’s (SRO’s) complaint, Athas controlled the trading in these accounts, deciding the frequency and volume of trades. He also allegedly made the calls regarding which securities to purchase and sell, as well as the quantity and timing of each transaction. William Athas’ customers usually would go by his recommendations.

Aegis Capital To Pay $2.75M For Churning in FINRA Case

Published on: November 17, 2021 | by Shepherd Smith Edwards & Kantas, LLP

68 Customers To Receive Restitution From NY-Based Broker-Dealer, Aegis Capital

The Financial Industry Regulatory Authority (FINRA) has sanctioned Aegis Capital, which will pay about $2.8M for the excessive and unsuitable trading that allegedly took place in dozens of customers’ accounts.

Of this amount, $1.7M in restitution will go to 68 customers who were potentially harmed. The remaining $1.1M is a fine the broker-dealer will pay for related supervisory violations involving Aegis brokers Roberto Birardi and Joseph Giordano.

Customers of Former Worden Capital Management Broker Christ Baltas Request Over $614K in Damages

Published on: August 31, 2021 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Barred New York Financial Advisor Following Unsuitability & Churning Allegations

If you have suffered investment losses while working with ex-Worden Capital Management broker Christ Elias Baltas, you may be able to pursue damages by filing a Financial Industry Regulatory Authority (FINRA) arbitration claim.

Baltas, who was based out of Melville, New York, is currently named in two pending customer disputes in which the claimants are seeking more than $614K in damage. FINRA barred him in 2020.

Another Ex-Worden Capital Management Broker, Joseph Todaro, is Accused of Excessive Trading

Published on: August 2, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Worden Capital Management Broker’s Customer is Seeking Over $200K in Damages

Joseph Paul Todaro, currently an SW Financial registered representative, is named in a customer dispute in which the claimant is reporting investment losses from excessive trading, failure to follow instructions, and poor services. The investor is seeking over $200K.

This is not the first customer of the Melville, New York-based broker to accuse Todaro of excessive trading. As a matter of fact, three other claims brought by his customers make similar allegations. Also, from 2018 to 2020, Todaro was a registered representative with Worden Capital Management, which last year was subject of a Financial Industry Regulatory Authority (FINRA) action related to the churning activities of its brokers.

FINRA Bars Worden Capital Management Broker Salvatore Pizzimenti Following Churning Allegations

Published on: July 8, 2021 | by Shepherd Smith Edwards & Kantas, LLP

SRO Was Investigating Trading Activity in Customers’ Accounts

The Financial Industry Regulatory Authority (FINRA) has barred Salvatore Pizzimenti from the industry. The ex-Worden Capital Management broker was under investigation for trades made in customers’ accounts. The industry bar came after Pizzimenti refused to give testimony in the self-regulatory organization’s (SRO’s) probe into the allegations.

Salvatore Pizzimenti, a former New York broker, has six disclosures on his BrokerCheck record. Aside from the bar, the other five are customer disputes.

FINRA Orders Worden Capital Management to Pay Over $1.5M For Brokers’ Churning

Published on: January 19, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Worden Capital Management’s Settlement Includes $1.2M in Customer Restitution

In December 2020, Worden Capital Management, a New York-based broker-dealer, arrived at an over $1.5M settlement with the Financial Industry Regulatory Authority (FINRA) over excessive trades made by the firm’s registered representatives.

The self-regulatory organization (SRO) contends that from January 2015 to October 2019, the New York brokerage firm did not have the kind of supervisory system in place that would have allowed it to “achieve compliance” with rules having to do with churning and excessive trading.