Edward Beyn—Churning of Customers’ Accounts

investment fraud attorneysEdward 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.

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In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.