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

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