Matthew Turner Suspended by FINRA for Alleged Reg-BI Violations

Matthew Turner (CRD #: 4114088), a broker registered with WestPark Capital, has been suspended by FINRA, according to his BrokerCheck record, accessed on February 20, 2025. If you have questions about his alleged conduct as a broker, keep reading.

Suspension by FINRA

On January 15, 2025, Matthew Turner consented to the entry of findings that he allegedly violated Regulation Best Interest by recommending excessive and unsuitable trading to three clients between September 2018 and December 2020.

Allegations of Excessive Trading

According to a Letter of Acceptance, Waiver & Consent (AWC), these clients allegedly relied on Matthew Turner’s advice and regularly followed his recommendations, giving him de facto control over their accounts. The AWC alleged the following:

• Customers A1 and A2: 71 and 63 years old, respectively, with a joint account. Matthew Turner allegedly placed 72 trades, resulting in realized losses of $115,183, an annualized cost-to-equity ratio of 50.49%, and an annualized turnover rate of 13.01. This allegedly also generated commissions of $9,613.76.
• Customer B: Matthew Turner allegedly executed 110 trades, resulting in realized losses of $45,639, an annualized cost-to-equity ratio of 27.58%, and an annualized turnover rate of 9.04. This allegedly also generated commissions of $24,655.93.

When evaluating excessive trading, a cost-to-equity ratio above 20% and a turnover rate of 6 or higher are considered red flags.

Allegations of Unauthorized Trading

The AWC alleged that Matthew Turner executed 148 unauthorized trades in four clients accounts, including Customers A1, A2, and B. These clients allegedly had not provided written authorization for him to exercise discretion and WestPark Capital had allegedly not accepted the accounts as discretionary.

The AWC concluded that these allegations constituted violations of Regulation Best Interest, FINRA Rules 2111, 2010, and 3260(b), and NASD Rule 2510(b).

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. These profiles describe an investor’s tax status, age, risk tolerance, and investment goals.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 3260

FINRA Rule 3260 forbids brokers from conducting discretionary trading outside of accounts approved in advance by their client and firm.

Sanctions

Matthew Turner consented to the following sanctions:

• Five-month suspension from associating with FINRA members
• Restitution of $27,415.75 plus interest

His suspension will run from February 3 to July 2, 2025. You can access the full AWC here.

Bankruptcy

On April 21, 2015, Matthew Turner discharged a bankruptcy.

Background Information

Matthew Turner has passed the following exams:

• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Combined State Law Examination – Series 66
• Uniform Securities Agent State Law Examination – Series 63

Matthew Turner is a registered broker in 19 states and the Virgin Islands.

He has also worked for the following firms:

• Laidlaw & Company (UK) (CRD#:119037)
• Jesup & Lamont Securities Corporation (CRD#:39056)
• GunnAllen Financial (CRD#:17609)
• First Montauk Securities (CRD#:13755)
• First Liberty Investment Group (CRD#:3536)

Kurta Law Can Help

If you worked with Matthew Turner and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.