Edward Beyn—Churning of Customers’ Accounts
Edward Beyn Allegedly Excessively Traded and Churned Six Customers’ Accounts
Edward Beyn, who was registered at Craig Scott Capital from March 2012 through May 2015, allegedly engaged in excessive trading and churned six customers’ accounts at Craig Scott, according to a Complaint from FINRA’s Department of Enforcement.
Edward Beyn allegedly churned and excessively traded in nine of the six customers accounts which resulted in annualized turnover rates as high as 188, the Complaint notes.
The Complaint also alleges that said accounts also carried annualized cost-to-equity ratios as high as 573%.
Edward Beyn Allegedly Used a Short-term Trading Strategy in Customers’ Accounts as a Means to Turn Over Accounts Quickly and Generate Outside commissions for Himself and Craig Scott; Allegedly Violated NASD and FINRA Rules
Edward Beyn allegedly used a short-term trading strategy in customers’ accounts as a means to turn over accounts quickly and to generate outside commissions for himself and Craig Scott, according to the aforementioned Complaint.
In order to accomplish this, Beyn allegedly relied heavily on buying and selling equities of companies that release their earnings reports as an impetus for excessively traded accounts, the Complaint notes.
Every aforementioned buy and sell — after the opening transaction in the account — carried both (1) either an agency commission or principal markup, generally between 3-5% of the trade amount; and (2) an additional standard $99 ticket charge designated as a “firm commission” on trade confirmations, the Complaint notes. As a result, FINRA has concluded that Beyn allegedly violated NASD and FINRA Rules.
The Peiffer Wolf Securities Lawyers Often Assist Investors
The Peiffer Wolf securities lawyers assist investors who lose money as a result of brokers churning customer accounts. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of brokers churning customer accounts are encouraged to contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.