FINRA fined, suspended, and ordered WestPark Capital broker Matthew Turner to pay restitution for excessive and unsuitable trading, which investigators say violated the SEC's Best Interest Obligation, also known as Regulation Best Interest ("Reg BI").
FINRA first issued a Reg BI sanction in 2022 when the regulator disciplined Network 1 Financial Services rep Charles Malico for improper trading recommendations and excessive transactions that resulted in customer losses, writing that Malico failed to act in the best interest of his retail customer.
Reg BI requires representatives act in their clients' best interests without putting the firm or broker's own personal interest ahead of the customer.
FINRA's present citation holds that Matthew Ian Turner (CRD #4114088) recommended trading in multiple customers' accounts that was excessive, unsuitable, and not in their best interests. Specifically, Turner purportedly placed 72 unsuitable trades in one such account held jointly by a 71-year-old and 63-year-old customer, resulting in realized losses of $115,183 and $9,613 in commissions.
Investigators also found that Turner exercised discretionary authority to effect 148 trades in additional accounts held by other customers without obtaining written authorization from the customers to engage in discretionary trading.
The report states that Turner's violations of the Exchange Act were willful and that he also generated tens of thousands of dollars in commissions and additional losses across other accounts in which he purportedly violated Reg BI by failing to act in his customers' best interests.
If you invested with Matthew Turner or with any broker or investment advisor who has made unsuitable recommendations or engaged in excessive trading without your consent and not in your best interests, resulting in losses or excessive commissions, sales charges, or other 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.