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Sean Sherwin Subject of a $2.2 Million Dispute

Sean Sherwin (CRD #: 4164630), a broker registered with PHX Financial, is facing investor allegations. This disclosure appears in his BrokerCheck record, accessed on August 15, 2023. Keep reading for more detail. 

On June 26, 2023, an investor alleged that Sean Sherwin recommended unsuitable investments that featured excessive commissions. The investors are seeking $2.2 million. Excessive commissions happen as a result of excessive trading, which is unsuitable under FINRA Rule 2111 because of the cost it generates for the investor. 

FINRA Rule 2111 

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals.

Some common violations of this rule include:

  • Excessive trading, which violates the need for quantitative suitability. This means that overall trading activity must also suit an investor’s goals.
  • Recommendations of unsuitable investment strategies. For instance, overconcentration of securities in a certain stock or sector is typically unsuitable due to the degree of risk.
  • Recommendations of high-risk or illiquid investments. These investments may lead to losses or high fees for the investor.

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

Tax Lien 

Sean Sherwin also has a tax lien on his record. On March 30, 2023, Sean Sherwin became the subject of a tax lien for $59,232.36. 

Background Information 

Sean Sherwin has passed the following exams: 

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

He is a registered broker in eight states, including New York.

Sean Sherwin has registered with PHX Financial (CRD #: 144403) and National Securities Corporation (CRD #: 7569). 

Kurta Law Can Help

If you worked with Sean Sherwin and you have concerns about your investments, please contact us today at 877-600-0098 or 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.