After FINRA accused Independent Financial Group California-based broker Stewart Ginn aka Stewart Taylor aka Paxton Ginn Jr of churning and excessively trading five customer accounts, resulting in $4.5 million in losses, Ginn reached a settlement with FINRA, agreeing to an 18-month suspension and $165,000 in fines and restitution. According to the settlement order, Ginn's frequent trading and high commissions caused $2.22 million in realized losses while generating $2.24 million in commissions for Ginn and IFG.
Several customers were elderly investors, including a 79-year-old retiree and 88-year-old retiree since deceased.
The findings state that Stewart Ginn (CRD #4503197) excessively and unsuitably traded several customers' accounts, improperly using discretion in at least four of them, without obtaining customer authorization or approval. Ginn holds registrations with IFG in Santa Maria, California, and Denver, Colorado.
FINRA found that Ginn routinely recommended customers buy large equities positions that were unsuitable and caused the customers to routinely incur losses on those trades.
The settlement order lists three particular charges, the findings of which Ginn has consented to for the purpose of settlement. They include excessive trading, quantitative suitability (reasonable basis) violations, and unauthorized use of discretion.
When FINRA first charged Ginn in 2023, several customers filed disputes alleging excessive commissions and unsuitable trades. Those disputes have since been settled for $700,000 (unsuitable investments), $400,000 (excessive commissions and unsuitable investments), and $150,000 (excessive commissions). Two additional customer disputes—one alleging $250,000 in damages while the other alleges $1.6 million—remain pending.
If you invested with Independent Financial Group broker Stewart Taylor Ginn or with any investment adviser or representative whose unsuitable recommendations, excessive trading, churning, or excessive commissions have proven harmful to your interests through investment losses or exorbitant fees, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.