- March 17, 2019
- Worden Capital Management
Sean McCabe is a Financial Advisor at Worden Capital Management in Westbury, NY. Sean McCabe has been in the securities industry since 2008 and previously worked at Four Points Capital Partners.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Sean McCabe has six customer complaint disclosures on his CRD, alleging various sales practice violations. Among the customer complait disclosures include the following:
- November 2018—”Statutory and common law fraud, misrepresentation, negligence, breach of contract and breach of fiduciary duty, and unsuitable recommendations. Time period of activity was May 17, 2017 through approximately Sept. 28, 2017.” The matter was settled for $17,500.
- July 2017—”INAPPROPRIATE TRADES AND TRADES NOT IN THE BEST INTEREST OF THE CUSTOMER.” The alleged damages were $49,329.
- March 2016—Cient alleges “BREACH OF FIDUCIARY DUTY, NEGLIGENT MISREPRESENTATION, NEGLIGENCE.” The matter was settled for $210,000.
- March 2016—Client alleges “BREACH OF FIDUCIARY DUTY, NEGLIGENT MISREPRESENTATION, NEGLIGENCE.” The matter was settled for $36,000.
- June 2015—Client alleges “EXCESSIVE TRADING, UNAUTHORIZED TRADING, MISREPRESENTATION, NEGLIGENCE, BREACH OF FIDUCIARY DUTY.” The matter was settled for $65,000.
For a copy of the Sean McCabe’s CRD, click https://brokercheck.finra.org/individual/summary/5479643#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.
Part of the suitability analysis requires that the trading activity be quantitatively suitable. Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
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