Sean J. Waters of Hemet, California submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he has been barred for allegedly engaging in churning and excessive and unsuitable trading in violation of Section 10(b) of the Exchange Act; Exchange Act Rule 10b-5; and FINRA Rules 2020, 2111, and 2010.
From December 2010 until April 2017, Mr. Waters was registered with Financial West Group as a General Securities Representative. Between January 2013 and March 2016, Waters engaged in churning and excessive and unsuitable trading in two accounts held by one customer. FINRA stated that during the relevant period, Waters exercised de facto control over and made all trading decisions in the customer’s account including which specific securities to buy and sell, the quantity of securities to buy and sell, and when to buy and sell the securities. According to FINRA, Waters executed 540 purchase transactions and executed 510 sale transactions. FINRA further stated that Water’s trading resulted in more than $88,000 in losses of the $150,000 the customer initially transferred to the firm. Waters allegedly earned 40 percent of his commissions solely from the trading in the customer’s account totaling $115,000.
Without admitting or denying FINRA’s findings, Waters consented to the sanctions and has been barred from association with any FINRA member in all capacities.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from churning/excessive trading and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Financial West Group, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Financial West Group account due to churning/excessive trading by your broker? Was Sean J. Waters your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Financial West Group stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.