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Sebastian Wyczawski Subject of Regulatory Action by State of Illinois

Sebastian Wyczawski (CRD #: 2835135), a broker registered with VCS Venture Securities, is the subject of a pending state regulatory action, according to his BrokerCheck record, accessed on January 12, 2023. Read on to learn more about his alleged conduct as a broker.

Regulatory Action by State of Illinois

On November 4, 2022, the State of Illinois filed a regulatory action against Sebastian Wyczawski following his suspension by FINRA in 2021.

This action cites Section 8.E(1)(j) of the Illinois Securities Law of 1953, which allows the Secretary of State to deny, suspend, or revoke the registration of brokers who have faced disciplinary action from self-regulatory organizations following the violation of that organization’s rules.

This regulatory action is currently pending.

FINRA Suspension

On November 5, 2021, Sebastian Wyczawski consented to the entry of findings that he allegedly engaged in excessive and unsuitable trading in two clients’ accounts between June 2016 and September 2017.

According to a Letter of Acceptance, Waiver & Consent (AWC), Sebastian Wyczawski allegedly recommended Customer 1 place 20 trades in his account between June 2016 and January 2017, all of which Customer 1 accepted. Despite Customer 1’s alleged average month-end equity of approximately $51,340, Sebastian Wyczawski allegedly recommended trades with a total principal value of over $528,759, resulting in an annualized turnover rate of over 17.

For context, cost-to-equity ratios over 20% and turnover rates above six are considered potential signs of excessive trading.

In total, Sebastian Wyczawski’s recommended trades allegedly cost Customer 1 $10,397 in trading costs, commissions, and margin interest. This allegedly resulted in an annualized cost-to-equity ratio of 34%.

Between September 2016 and September 2017, Sebastian Wyczawski allegedly recommended Customer 2 place 45 trades, all of which he accepted. Customer 2 allegedly had an average month-end equity of approximately $14,831, and Sebastian Wyczawski allegedly recommended trades with a total principal value of over $300,524. This allegedly also resulted in an annualized turnover rate above 17.

In total, Sebastian Wyczawski’s recommendations allegedly cost Customer 2 $11,247 in trading costs, commissions, and margin interest, resulting in an annualized cost-to-equity ratio of 65%.

The AWC concluded that these allegations constituted violations of FINRA Rules 2111 and 2010.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile, which describe investor characteristics, such as their tax status, risk tolerance, and financial goals. 

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

FINRA Rule 2010

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

Sanctions

Sebastian Wyczawski consented to the following sanctions:

  • $5,000 fine
  • 5-month suspension
  • Restitution of $21,644 plus interest
  • Completion of 20 hours of continuing education regarding suitability obligations within 90 days of the Notice of Acceptance of the AWC

You can read the full AWC here.

Background Information

Sebastian Wyczawski has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 62 – Corporate Securities Limited Representative Examination
  • Series 24 – General Securities Principal Examination

Sebastian Wyczawski is a registered broker in 35 states, the District of Columbia, and Puerto Rico.

He has also worked for the following firms:

  • Joseph Stone Capital (CRD#:159744)
  • Cape Securities (CRD#:7072)
  • Liberty Partners Financial Services (CRD#:130390)
  • Milestone Financial Services (CRD#:43295)
  • Seaboard Securities (CRD#:755)

Kurta Law Can Help

If you worked with Sebastian Wyczawski 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 and 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. 

 

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