Illegal Churning of Accounts
Securities Fraud and Financial Elder Abuse
A recent Southern California case of stockbroker churning reveals the seriousness of allegations of broker misconduct, especially when the misconduct targets seniors. Churning means excessive trading by a broker in a client’s account largely to generate commissions. Stock and bond purchases and insurance and annuity purchases all generate sales commissions so churning is a potential risk with every commission-generating financial instrument. Churning is an illegal and unethical practice that violates Securities and Exchange Commission (SEC) rules, federal and State securities laws, and industry practices. When perpetrated against a senior the misconduct also violates California financial elder abuse protections.
The San Diego, San Francisco and California securities fraud and financial elder abuse attorneys at Evans Law Firm, Inc. represent customers, especially seniors, who have lost money as the result of churning in customer securities accounts and by insurance agents and brokers in customer’s annuities and losses from other SEC violations. If you or a loved one has suffered a loss as a result of churning in your securities account or of any annuities you hold, call us today at (415)441-8669. We handle cases in San Diego, San Francisco and throughout California.
In a recent Public Disclosure by the Financial Industry Regulatory Authority (FINRA), FINRA disclosed that a Southern California stockbroker has been sued by a senior customer for $9.5 million in damages based on allegations of elder abuse, misrepresentation, excessive trading, breach of fiduciary duty, excessive mark-downs and mark-ups (artificially altering a share’s price), inappropriate margin use, suitability, and churning of the client’s bond portfolio.
FINRA reports that there are five additional customer-initiated disputes containing allegations of the same broker’s misconduct. Evans Law Firm, Inc. is not involved in any of these cases but the FINRA disclosure reveals just how serious and widespread churning and other securities misconduct can be, especially when targeting seniors.
The information we share here is taken from FINRA disclosures concerning only allegations of misconduct. All claims and accusations against the broker are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from the information we share.
If you or someone you love is the victim of any type of securities or other financial fraud or financial elder abuse, or are headed to a FINRA Arbitration, call San Diego, San Francisco and California securities fraud and financial elder abuse attorney Ingrid Evans and the other Evans Law Firm, Inc. securities and elder abuse attorneys at (415) 441-8669, or by email at <a href=”mailto:firstname.lastname@example.org”>email@example.com</a>. Our attorneys have experience with fraud and financial elder abuse cases and complex qui tam or whistleblower cases, complex financial contract cases and cases against large insurance companies. We can help guide your case through a jury trial or toward an equitable settlement. We also handle cases involving physical elder abuse, nursing home abuse, whole life insurance and universal life insurance, and indexed, variable, and fixed annuities.