- March 17, 2019
- Worden Capital Management
Stephen Sullivan is a Financial Advisor at SW Financial in Melville, NY. Stephen Sullivan has been in the securities industry since 1998 and previously worked at Worden Capital Management, Newbridge Securities Cortp. and three brokerage firms that have been expelled from the industry by the Financial Industry Regulatory Authority.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Stephen Sullivan has a pending customer complaint, alleging “unsuitable transactions, excessive trading, and failure to supervise.” The alleged damages are $540,618 and the matter remains pending. In 2010, Stephen Sullivan was the subject of a second customer complaint, alleging unauthorized trading.
In addition to the customer complaint disclolsures, Stephen Sullivan was sanctioned by FINRA in 2016 for exercising “discretion in the accounts of two separate customers without obtaining prior written authorization from his customers…” Stephen Sullivan was suspended ten days and fined.
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2014039219802_FDA_SL676919.pdf
For a copy of the Stephen Sullivan’s CRD, click https://brokercheck.finra.org/individual/summary/3123249#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.
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 firstname.lastname@example.org.