The Financial Institutions Regulatory Authority (FINRA) has ejected broker Mark Kaplan from the securities industry. Kaplan was found to have churned the account of a 93 year old client.
According to the Letter of Acceptance, Waiver and Consent agreed to by Kaplan, the 93 year old was stricken with dementia.
The churning occurred over 4 years. $723,000 in trading losses occurred. Kaplan reportedly generated a like amount of commissions and mark ups for himself and his employer, Vanderbilt Securities.
According to his FINRA records, Kaplan was registered with Vanderbilt in Woodbury, N.Y. from 2011 until he resigned last month. Kaplan was previously associated with Morgan Stanley. 7 customer disputes were stated on his BrokerCheck report.
The Letter of Acceptance, Waiver and Consent stated that between 2011 and 2015, Kaplan “engaged in churning and unsuitable excessive trading in the brokerage accounts of a senior customer.”
The customer reportedly had about $508,000 in his investment account. Social Security was his singular source of income. Kaplan made more than 3,500 trades in the client’s accounts. This was over the 4 years of trading. The customer was “churned and burned.”
Churning involves unauthorized trading of any account for the purpose of generating commissions for the broker’s benefit. Many other factors are considered. Expert witnesses many times are called at hearing. Some if the components are control of the account by the broker, annual turnover and the commission to equity ratio.http://www.BrokerFraud.Net
Losses were about $723,000 with $735,000 in commissions with mark ups.
Anthony M. Abraham, Esq., PC is experienced in churning and unauthorized trading claims. If you suspect that your account has been churned, please call us Toll Free at 1-877-430-4877 for a Free Consultation or email us at Anthony@Abrahamattorneys.com.http://www.BrokerFraud.Net