Broker Barred by FINRA for Churning

Sean Francis Sheridan has been barred by FINRA for alleged excessive trading, also know as churning. FINRA's investigation found that he executed 205 excessive mutual fund trades with eight customer’s from January, 2007, through December, 2009. Sheridan effected these trades on a short-term basis of approximately four to five months, increasing customer losses while also increasing his commissions. FINRA investigators found that Sheridan only recommended Class A mutual fund shares to customers, which resulted in them having to pay additional sales charges with each new purchase. Sheridan's customers lost a approximately $1 million and Sheridan received commissions of approximately $267,000.

At the time of these trades, Sean Sheridan was employed by JP Turner & Company, LLC, in Atlanta, GA.

Allegedly, Sheridan "randomly" switched customers between fund categories, which added to the sales charges, instead of disclosing to customers that exchanging into another fund within the same fund family would avoid these charges. Sean Sheridan also allegedly falsified his firm records by identifying the fund switch transactions as "unsolicited" when in fact Sheridan had solicited the sales through his unsuitable recommendations.

The majority of the customers were "unsophisticated investors," including retired persons and two disabled clients with no understanding of mutual fund transaction risks. These customers invested a large portion of their retirement funds.

According to FINRA's BrokerCheck, Sean Sheridan was previously registered with FINRA at the following brokerage firms:

NEWBRIDGE SECURITIES CORPORATION
CRD# 104065
FT. LAUDERDALE, FL
08/2010 - 10/2012

RIDGEWAY & CONGER, INC.
CRD# 113055
NEW WOODSTOCK, NY
02/2010 - 08/2010

J.P. TURNER & COMPANY, L.L.C.
CRD# 43177
ATLANTA, GA
04/2001 - 02/2010

If you feel your account was churned by your broker call Soreide Law Group for a free consultation at (888) 760-6552.