FINRA Alleges $2 Million in Client Losses and $2 Million in Commissions Due to Advisor's Churning

Posted on November 22nd, 2023 at 12:08 PM
FINRA Alleges $2 Million in Client Losses and $2 Million in Commissions Due to Advisor's Churning

From the desk of Jim Eccleston at Eccleston Law 

According to a Financial Industry Regulatory Authority (FINRA) complaint, Stewart "Paxton" Ginn excessively traded accounts over two and a half years, resulting in $2.22 million in losses and $2.24 million in commissions for him and his firm.

From July 2020 to December 2022, Ginn made unauthorized and excessive trades in the accounts of five customers, including three retired seniors, one of whom was in her late 80s and suffering from Alzheimer's. As reported by AdvisorHub, Ginn repeatedly purchased large equities positions, even though he did not have discretion in the customer accounts. Ginn continued the excessive, high-cost trading even as each customer account incurred substantial realized losses, as noted by FINRA.

FINRA alleges that Ginn willfully violated the Securities Exchange Act of 1934 and his Regulation Best Interest obligations. FINRA is seeking disgorgement of any ill-gotten gains and restitution for the investors.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

 

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next

I just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.

LATEST NEWS AND ARTICLES

September 15, 2025
California Young-Gun Investor Charged in Alleged $6 Million Ponzi Scheme

Federal prosecutors have accused Mihir Deepak Sukthankar, a California resident once celebrated as a teenage trading “prodigy,” of orchestrating a multi-million-dollar Ponzi scheme.

September 12, 2025
LPL Broker Fined and Suspended for Recommending Risky Investments to Elderly Client

An LPL Financial broker in Elizabethtown, Kentucky, has agreed to sanctions after FINRA found he violated Regulation Best Interest (Reg BI) when recommending unsuitable investments to an elderly customer.

 

September 11, 2025
Montana Federal Judge Allows Family's Premium Financing Claims to Proceed

A federal judge in Montana has allowed a family to move forward with negligence, fraud, and unjust enrichment claims tied to a premium-financed life insurance arrangement valued at $67.5 million.