James Mark McLaughlin Barred for Allegedly Endorsing Unsuitable Short-Term Trades, Unauthorized Trading

stockbroker fraud attorneyFrom October 2010 through October 2012 James Mark McLaughlin allegedly engaged in excessive trading in four customers’ accounts in violation of NASD and FINRA Rules, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC).

Meanwhile, McLaughlin also allegedly recommended unsuitable short-term trading of A-share mutual funds in four customers’ accounts in violation of NASD Rules, the aforementioned AWC further alleges.

James Mark McLaughlin Excessively traded at Least Four Customers’ Accounts, Allegedly

From October 2010 through October 2012 James Mark McLaughlin allegedly excessively traded at least four customers’ accounts, which involves the number of trades, turnover rate, and cost-to-equity ratio for several accounts across the aforementioned two-year period, the AWC alleges.

For example, for a customer known as LC, McLaughlin allegedly caused the execution of286 purchase and sale transactions resulting in a turnover rate of47.63 and a cost 40-equity ratio of 228.03%, the AWC further alleges. In addition, the AWC reports that for a customer known as LR, McLaughlin allegedly caused the execution of459 purchase and sale transactions resulting in a turnover rate of 15.86 and a cost 40-equity ratio of 69.54%.

Said conduct led FINRA to allege that McLaughlin engaged in excessive trading and that he excessively traded the above customers’ accounts, thus allegedly violating NASD and FINRA Rules, the AWC notes.

FINRA defines excessive trading as being generally measured by the turnover rate, that is, the number of times the value of the account is turned over within a given period of time, and, secondly, the cost-to-equity ratio, which represents the percentage of return on the customer’s average net equity needed to pay commissions and other account expenses over a given period of time.

Investment Recovery Lawyers Investigating

The Peiffer Rosca Wolf investment recovery lawyers often represent investors who lose money as a result of investment misconduct. 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 investment misconduct may contact the investment recovery lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1163 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


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.