A broker in New York has fallen foul of the Financial Industry Regulatory Authority (Finra) after he allegedly churned client accounts to the cool sum of $1.7 million in just three years.
According to a report at InvestmentNews, Edward Beyn, formerly of Craig Scott Capital, made excessive trades across nine accounts for six customers from March 2012-May 2015. In its complaint, Finra alleges that Beyn carried out heavy trading around earnings reports release dates. Ultimately, his clients, who included business owners in industries such as airline parts and construction, were left with net losses.
He is not the only one to get on the wrong side of the regulator, however.
According to a separate InvestmentNews report, Triad Advisors, a practice based in Georgia, has been fined $200,000 after it failed to pass on sales charge discounts on unit investment trusts to its customers.
The publication writes that the incorrect actions took place from May 2009-April 2014 and Triad has now agreed to pay $125,000 in fines and $102,632 in restitution. In addition, Finra has also alleged that the company didn’t have a suitable supervisory system in place.