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Investors Name Stewart Ginn in Disputes Alleging Excessive Commissions

Stewart Ginn (CRD #: 4503197), a broker registered with Independent Financial Group, is involved in two pending investor disputes, according to his BrokerCheck record, accessed on May 16, 2023. Keep reading if you want to know more about his alleged conduct as a broker.

Investor Disputes

On March 21, 2023, an investor named Stewart Ginn in a dispute alleging that their accounts were subject to excessive commission charges. The client seeks $120,000 in damages in this pending dispute.

In a dispute filed on December 6, 2022, an investor alleged that Stewart Ginn recommended unsuitable investments and executed sales that resulted in capital gains and a tax liability.

The client further alleged that they were charged excessive commissions. They seek $300,000 in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately fit an investor’s financial goals. Brokers must consider the information described in an investor’s profile, such as their age, risk tolerance, and tax status.

Excessive trading violates this rule by generating commissions and fees that can significantly reduce investors’ returns.

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

FINRA Investigation

On March 10, 2023, FINRA entered a preliminary determination recommending disciplinary action against Stewart Ginn. A FINRA investigation allegedly found that he engaged in unsuitable and excessive trading and exercised trading discretion without written authorization from clients.

FINRA further alleged that Stewart Ginn willfully violated the following regulations:

  • Section 10(b) and Rule 10b-5 thereunder of the Securities Exchange Act of 1934
  • Regulation Best Interest
  • FINRA Rules 3260, 2111, 2020, and 2010

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 prohibits the use of manipulative or deceptive devices in relation to the purchase or sale of securities. Rule 10b-5 specifically prohibits false statements and omissions of fact that mislead investors.

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 3260

Unauthorized trading violates FINRA Rule 3260, which limits brokers to engaging in discretionary trading only in pre-authorized accounts. Both the firm and the client must approve an account before discretionary trading can occur.

FINRA Rule 2020

FINRA Rule 2020 bans the use of manipulative, deceptive, or otherwise fraudulent methods to influence investors’ decisions. This includes the misrepresentation or omission of information, such as an investment’s potential risks, returns, or fees.

FINRA Rule 2010

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

Background Information

Stewart Ginn has passed the following exams:

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

Stewart Ginn is a registered broker in 38 states.

He has also worked for the following firms:

  • Navian Capital Securities (CRD#:145037)
  • Newbridge Securities (CRD#:104065)
  • Chicago Investment Group (CRD#:11853)
  • Ladenburg, Thalmann & Company (CRD#:505)
  • Ladenburg Capital Management (CRD#:14623)

Kurta Law Can Help

If you worked with Stewart Ginn 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 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.