November 25, 2014-Westover, Alabama
James Mark McLaughlin was permanently barred from the securities industry by the Financial Industry Regulatory Authority for excessive trading (churning) customer accounts, unsuitable short term trading of A-Share mutual funds and for exercising discretion in customer accounts, also known as exercising discretion.
According to the FINRA letter of Acceptance Waiver and Consent, McLaughlin engaged in the following violative conduct:
Excessive Trading is measured by the turnover rate and the cost to equity ratio. FINRA found that McLaughlin excessively traded in four accounts. In one of the accounts there were 459 purchases and sales resulting in a turnover rate of nearly 16 times the value of the account and a cost to equity ratio of nearly 70%. The cost to equity ratio is the amount the account would have to make to break even.
Unsuitable Short-Term Trading of A-share Mutual Funds, purchase and sale within a year, resulted in customers paying unnecessary mutual fund fees and commissions to McLaughlin. The customers would have paid 75% less in fees had they purchased C-shares.
Unauthorized Trading occurs when a broker places trades in an account without having discussions with the customer first. McLaughlin traded four customer accounts without obtaining written authority to do.
According to FINRA records, McLaughlin was registered with Securities America from 10/2000 until 10/2012 when he was discharged for violating firm policy related to excessive trading. Prior to that he was registered with Prudential Securities Inc.
He was also barred by the Alabama Securities Commission in November 2013.
If you believe your account has been excessively traded or that the broker has traded it without your authority, contact us to learn how you may be able to recover damages.
Rex Securities Law , located in Boca Raton, FL, provides representation to investors in Alabama and 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.
561 391 1900