FINRA (The Financial Industry Regulatory Authority) barred stock broker Hank Mark Werner of Northport, New York, for fraudulently churning and excessive trading in the account of a blind, elderly widow.
Account Excessively Traded-Churning
The FINRA panel found that Werner “engaged in such active trading strategy that, when high commissions were taken into account, it was impossible for her to make money.” Some of the holdings were bought and sold within a week or two and even when a profit was made on a security, the high commissions usually wiped out the gain.
Werner also committed another abuse that we often see in the accounts of elderly persons whose broker is determined to take advantage. He recommended an unsuitable switch from one annuity to another. The panel found the only basis for the switch was to generate a commission for Werner and his firm.
In addition to barring Werner from the securities industry , the panel fined him $80,000 and ordered restitution and disgorgement of over $165,000.
Werner’s prior employment includes two firms that have been expelled from the industry by FINRA: Legend Securities . expelled 4/2017 and Brookstone Securities (expelled 10/2012). He also was employed by Liberty Partners Financial Services and Alexander Capital. Both of those firms are currently operating as FINRA members.
If you have losses in an account handled by Hank Mark Werner while he was employed by either Liberty Partners Financial Services or Alexander Capital, call to learn your legal options.
The Law Offices of Robert H. Rex, P.C. , 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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