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FINRA Files An Enforcement Action Against Former Financial West Group Broker, Daniel Maughan

Daniel Maughan (CRD # 2561363) is a former Financial Advisor at Financial West Group in Los Angeles, CA.  Daniel Maughan has been in the securities industry since 1997 and previously worked at Wedbush Securities and Merrill Lynch.

According to publicy available records released by the Financial Industry Regulatory Authority (FINRA), on July 11, 2019, FINRA made a preliminary determination to recommend that disciplinary action be brought against Daniel Maughan for sales practice misconduct, “alleging violations of NASD Rule 2310 and FINRA Rules 2111 and 2010 for excessive trading; Willful violation of Section 10(b) of the Securities and Exchange Act of 1934 (“Exchange Act”) and Exchange Act Rule 10b-5 thereunder, and violations of FINRA Rules 2020 and 2010 for churning; and violation of NASD Rule 2310 and FINRA Rules 2111, 2360(b)(19)(A) and (B), and 2010 for unsuitable trading in options, in non-traditional exchange-traded funds and an exchange traded note, in low-priced securities, and on margin.”   A copy of the FINRA enforcement complaint can be viewed by clicking https://www.finra.org/sites/default/files/fda_documents/2017054755206%20Daniel%20G.%20Maughan%20CRD%202561363%20Complaint%20va.pdf

In addition, Daniel Maughan has been the subject of four customer complaints during his career, alleging sales practice misconduct, including the following:

  • September 2015—”Breach of fiduciary duty, Negligence, Breach at contract, and misrepresentation.”  The matter was settled for $550,000.
  • July 2019—”STATEMENT OF CLAIM ALLEGES BREACH OF FIDIUCIARY DUTIES, NEGLIGENT MISREPRESENTATION, NEGLIGENCE, FRAUD CONVERSION UNSUITABLE ADVICE, BREACH OF CONTRACT AND LACK OF SUPERVISION. CLIENT ALSO ALLEGES FAILURE TO FOLLOW WRITTEN AND VERBAL INSTRUCTIONS AND UNAUTHORIZED PURCHASE.”  The matter was settled for $10,000.
  • December 2001—”
    IN CONNECTION WITH STOCK PURCHASES IN FEBRUARY 2000, PLAINTIFFS ALLEGE, AMONG OTHER THINGS, CHURNING, ANAUTHORIZED TRADING AND UNSUITABILITY. NO SPECIFIC DAMAGES ALLEGED.”  The matter was settled for $46,000.
  • March 2001—”CLIENT’S DAUGHTER CLAIMS THAT THREE PURCHASES IN HER FATHER’S ACCOUNT WERE UNAUTHORIZED. SHE ADDITIONALLY STATES THAT EVEN IF THE BROKER TALKED TO HER FATHER AND HE AGREED TO THE PURCHASES, IT WASN’T AN AUTHORIZED PURCHASE BECAUSE HE COULD NOT COMPREHEND THE CONVERSATION.”  The matter was settled for $51,321. 

For a copy of Daniel Maughan’s BrokerCheck report, click https://brokercheck.finra.org/individual/summary/2561363#disclosuresSection

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients.  To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities.  Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.  We can be reached at 800.931.8452 or by email at mwolper@wolperlawfirm.com.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]