Gregory Thomas Dean of Seaford, New York submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was barred for allegedly violating Section 10(b) of the Exchange Act and Rule 10b-5 and FINRA Rules 2020, 2111, and 2010 by churning and engaging in unsuitable trading.
In November 2014, Gregory Thomas Dean joined Worden Capital as a General Securities Representative, General Securities Principal and an Operations Professional. According to FINRA, Dean churned and excessively traded seven customers’ accounts resulting in more than $1,834,832 in losses while he received more than $715,930 in commissions. The FINRA findings stated that Dean exercised de facto control over these customers’ accounts. The findings also stated that Dean’s trading in the customers’ accounts was conducted with reckless disregard for the customers’ interests resulting in high turnover rates and cost-to-equity ratios. According to FINRA, due to the level of trading in these accounts, it was impossible for customers to generate trading profits.
Section 10(b) of the Exchange Act makes it unlawful for any person to employ “any manipulative or deceptive device or contrivance in contravention of such rules and regulations as the [Securities and Exchange] Commission may prescribe.” Rule 10b-5 of the Exchange Act makes it unlawful for any person directly or indirectly, in connection with the sale or purchase of any security, to: (a) “employ any device, scheme, or artifice to defraud,” (b) “make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made…not misleading,” or (c) “engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.”
Without admitting or denying FINRA’s findings, Gregory Thomas Dean consented to the sanctions and to the entry of findings 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, unsuitable recommendations and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Worden Capital, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Worden Capital account due to churning/excessive trading and/or unsuitable recommendations by your broker? Was Gregory Thomas Dean 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 Worden Capital 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.