Former Newbridge And Financial West Group Financial Advisor, Sean Waters, Barred By FINRA For Excessive Trading In The Account Of A Senior Investor
The Wolper Law Firm is currently investigating claims against Sean Waters, a former Financial Adviser at Newbridge Securities Corp. in Boca Raton, FL. Sean Waters has been in the securities industry since the 2001 and previously worked for Financial West Group through 2017.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on November 28, 2018, Sean Waters was sanctioned by FINRA, barring him from the securities industry. The FINRA order alleges that Sean Waters engaged in excessive trading within an elderly customer’s account. Specifically, the FINRA sanction states:
“Without admitting or denying the findings, Waters consented to the sanction and to the entry of findings that he engaged in excessive and unsuitable trading, and churning in a senior customer’s accounts at his member firm, thus he willfully violated Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5, and FINRA Rules 2010, 2020 and 2111. The findings stated that Waters’ trading in the customer’s accounts was excessive and conducted with a reckless disregard for her interests. Waters’ trading resulted in more than $88,000 in cumulative losses to the senior customer out of $150,000 she initially transferred to his firm, while he generated commissions, markups/markdowns and fees totaling approximately of $115,000. In fact, during a four-year period, Waters earned 40 percent of his total commissions solely from the trading he did in this customer’s individual account and IRA. Waters’ level of trading activity in these accounts, which he exercised de facto control over and made all trading decisions, was inconsistent with the senior customer’s investment objectives and financial situation.”
For a full copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2017054755203%20Sean%20J.%20Waters%20CRD%204414180%20AWC%20jm%281%29.pdf
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. Part of the suitability analysis requires that the trades are quantitatively suitable, meaning that the broker cannot execute excessive trades or engage in churning.
The Wolper Law Firm is interested in speaking with clients of Seat Waters as part of its investigation. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org. 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.
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