Stewart Ginn is affiliated with Independent Financial Group and Crosby Investment Group with offices located in California and Colorado. Regulators accuse Ginn of churning accounts, of mostly elderly investors, and creating millions of dollars in losses and unnecessary commissions.
A regulatory complaint asserts that Ginn, a licensed securities broker, exercised control over the accounts of at least five investors. These investors were mostly elderly and retired. Ginn then proceeded to trade the accounts excessively. This was in the best interests of Ginn and not his investors. As a result, the investors incurred losses and commissions of over $4.5 million.
Securities regulations currently require that a broker act in the best interests of an investor. A broker fails to act in the best interests of a client when the broker puts commissions ahead of the investment objectives of a client. As the percentage of the portfolio consumed by commissions increases the ability for the portfolio sustain value decreases. Even before this best interests standard was the rule, brokers were required to only recommend suitable trades and abstain from excessive trading.
Ginn and his employer are currently facing three investor lawsuits in addition to the regulatory suit. All assert allegations of excessive trading and excessive commissions.
We have handled investor suits such as these for over 20 years. Please contact us to discuss your options. Initial consultations and free and confidential.
Recent Comments