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