February 2017- Oak Brook, Illinois
According to publicly available records Matthew Christopher Maczko , (CRD# 1888519) , a former stockbroker who was last employed by Wells Fargo Advisors, LLC, discloses that FINRA has permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
According to FINRA allegations, Maczko, without admitting or denying the findings, consented to the entry of findings that between January 209 and April 2016, he effected excessive trading in four accounts of a customer who is 93 years old. The findings stated that Maczko effectively controlled the account which had a value of about $3 million and that he generated about $581,000 in commissions plus other fees of over $84,000 while the accounts lost nearly $400,000. The level of trading was unsuitable for the customer given her age, investment profile, risk tolerance and investment needs.
Maczko was employed by Wells Fargo from 2/2008-9/2016. Prior to that he was employed by UBS Financial Services.
Churning & The Looper Formula
The Looper turnover rate calculates the dollar amount of purchases during a time period divided by the average account equity annualized. The 2-4-6 ‘rule of thumb’ turnover rate is often used to generally analyze trading:
- Twice a year is ‘suggestive’ of excessive trading
- Four times a year is ‘indicative’ of excessive trading
- Six times a year turnover is ‘conclusive’ of excessive trading
If you have questions about an account in an account handled by Matthew C. Maczko , contact us to discuss your legal options.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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