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 cannot thank you enough for your efforts. You have proven to be a valuable resource.

Jim T.

LATEST NEWS AND ARTICLES

October 21, 2025
Judge Denies Merrill Lynch's TRO in Advisor Transition

A federal judge has rejected Merrill Lynch’s request for a temporary restraining order (TRO) against a group of former financial advisors who left the firm to launch their own independent practice, OpenArc Corporate Advisory, under Dynasty Financial Partners’ platform with custody at Charles Schwab.

October 20, 2025
FINRA Accuses Former MML Broker of Cheating on SIE Exam

Regulators have accused a former MML Investors Services-affiliated broker of cheating on the Securities Industry Essentials (SIE) exam, according to a recent Financial Industry Regulatory Authority (FINRA) enforcement complaint.

October 17, 2025
FINRA Fines Oak Hills Securities for Private Placement Misconduct

The Financial Industry Regulatory Authority (FINRA) has censured and fined Oak Hills Securities Inc., an Oklahoma City brokerage, for multiple rule violations over five years.