Tag Archives: jp turner churning

Raymond Clark – Woodstock Financial Group Broker- Discloses Customer Disputes-Staten Island, NY

January 2019-Staten Island, NY According to publicly available records  Raymond William Clark , a  stockbroker who is currently registered with Woodstock Financial Group,  disclose 8 prior customer disputes and a termination from employment.

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.

In 10/2014 a customer of  Clark’s prior employer, JP Turner and Company, was paid $700,000 to resolve allegations that Clark mismanaged the account and breached his fiduciary duty. 

In 4/2011 another customer of J.P. Turner was paid $70,000 to resolve allegations that Clark churned their account and made misrepresentations. 

Clark has been with Woodstock Financial Group  since May of 2013.  . His prior employment includes Chelsea Financial Services  and JP Turner and Company. Clark discloses business affiliations with Biondolillo Financial Group (BFG) and Reascence Capital LLC

If you have losses in an account in an account handled by Raymond William Clark, Jr.  , contact us for a no charge consultation to learn how you may be able to recover damages  through FINRA arbitration.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

SEC Announces Proposed Plan of Distribution in J.P. Turner/William Mello Matter

October 8, 2014- The SEC announced the Proposed Plan of Distribution and Opportunity for Comment in the Matter of JP Turner & Company and William L. Mello.  In 2012 the SEC entered an order and sanctions against JP Turner and its former president William Mello for failing to supervise three registered representatives who churned customer accounts to generate commissions in disregard of customer’s objectives and financial needs.

JP Turner and Mello were ordered to pay disgorgement, penalties and interest of over $461,000.  The SEC has established a Distribution Plan for those affected by the wrongdoing. Here is a link to the Notice which describes the procedure to be followed to receive monies from the Distribution Fund.

Rex Securities Law provides nationwide representation to investors 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.

Rex Securities Law

561 391 1900

Churning by J.P. Turner Brokers Costs Conservative Investors $2.7M

In a news release that can be accessed here, the Securities and Exchange Commission (SEC) charged three former brokers from J.P. Turner & Company (Ralph Calabro, Dimitrios Koutsoubos & Jason Konner) with churning the accounts of customers with conservative investment objectives resulting in losses of $2.7 million. According to the SEC release, the brokers churned the accounts of seven customers generating  commissions, fees and margin interest of about $845,000.

In addition the company, J.P. Turner’s president William Mello and Michael Bresner, head of firm compliance, were also charged with compliance failures.

JP Turner and Mello agreed to settle by paying penalties of about $500,000 and agreeing to hire an independent consultant to review the firm’s supervisory procedures. Mello is suspended from association in a supervisory capacity for five months. The SEC proceeding will continue against the three brokers and the compliance supervisor.

In 2008, J.P. Turner was fined $250,000 by FINRA for failing to to have an adequate supervisory system designed to ensure that commissions charged to customers were fair and reasonable. As a part of that settlement, J.P. Turner was required to hire an independent consultant to review firm policies and procedures relating to FINRA’s Fair Pricing Rule.

An SEC website  which provides answers to common questions from investors defines “churning” as:

“Churning occurs when a broker engages in excessive buying and selling of securities in a customer’s account chiefly to generate commissions that benefit the broker.  For churning to occur, the broker must exercise control over the investment decisions in the customer’s account, such as through a formal written discretionary agreement.  Frequent in-and-out purchases and sales of securities that don’t appear necessary to fulfill the customer’s investment goals may be evidence of churning. Churning is illegal and unethical. “

It can violate SEC Rule 15c1-7 and other securities laws.

It is not necessary that there be a formal written discretionary agreement between the customer and the brokerage firm for churning to occur. We have seen many instances where the broker buys and sells in customer accounts without first obtaining permission from the customer and where there is no written agreement.

If you have conservative investment objectives and your risk tolerance is low to moderate, which is the case for most retirees, then there should not be a significant amount of trading (buying and selling) in your account. If you believe your account has been traded excessively resulting in losses, you may be a victim of churning.

If you have a question about your brokerage account, do not hesitate to contact us.

Rex Securities Law , located in Boca Raton, FL, 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.

Rex Securities Law

561 391 1900