FINRA Bars Craig Scott Broker Edward Beyn For Excessive Trading, Churning

Edward Beyn (CRD#: 5406273, Syosset, New York) is an ex Craig Scott Capital securities broker who FINRA barred from the securities industry. Specifically, on January 29, 2019, National Adjudicatory Council (“NAC”) issued a Decision in Matter #2015044823501, affirming a July 31, 2017 Extended Hearing Panel Decision finding Edward Beyn made unsuitable investment recommendations, excessive trades, and even churned accounts. Notably, Beyn violated Section 10(b) of the Exchange Act, Rule 10b-5, and FINRA and NASD Rules. FINRA barred Beyn because of this.

FINRA Finds Edward Beyn Churned Customer Accounts

The Extended Hearing Panel Decision stated that Edward Beyn exercised control over trading in Craig Scott Capital accounts. In those accounts, the Panel determined Beyn made “quantitatively” unsuitable trades, and excessively traded customers’ investments. Supposedly, Edward Beyn’s egregious actions were evidenced through high turnover rates and cost-to-equity ratios.
Not only that, but the Panel claimed that Beyn made trades that did not fit the customers’ objectives and financial circumstances. For example, Beyn advised a customer to purchase exchange traded notes when he did not have a practical basis to believe the notes transactions were suitable for the customer. FINRA determined that customers paid $1,500,000.00 in commissions and markups. As a result, Edward Beyn made $650,000.00.
Additionally, the Panel found that Beyn frequently made short-term trades in Craig Scott Capital customer accounts. Indeed, the Edward Beyn and three representatives were reportedly responsible for the majority of 9,000 trades in customer accounts.  Because of the short-term trading, customers faced a significant obstacle in breaking even or making a profit. Eventually, customers lost at least $9,000,000.00. Critically, the Panel stated that no customer’s account showed a profit. Meanwhile, Beyn and other representatives generated millions. Because of this, the Panel indicated that Beyn’s motive was to generate commissions for himself even if it meant the customers would lose money.
At least six customers brought claims against Edward Beyn. Here is a summary of some of those complaints:

March 20, 2018 Arbitration Alleging Edward Beyn’s Unsuitable, Unauthorized Trading

A customer of Craig Scott Capital, LLC brought a Statement of Claim in FINRA #18-01066 on March 20, 2018. Primarily, the customer claimed that Edward Beyn churned the customer’s account. Secondly, Beyn allegedly made unsuitable and unauthorized trades. Furthermore, the customer alleged that Beyn misrepresented and committed a fraud against the customer in violation of Rule 10b-5. Eventually, after reviewing the issues, the Arbitrator determined Beyn was liable. Because of this, the Arbitrator ordered Beyn to pay the customer compensatory damages to the tune of $50,000.00.

April 20, 2015 Arbitration Concerning Edward Beyn’s Breach Of Fiduciary Duty, Negligence

A Craig Scott Capital, LLC customer filed a FINRA Arbitration #15-00735 on April 20, 2015 in regard to Edward Beyn’s activities. Allegedly, Beyn made “highly speculative” and unsuitable stock trades. Not only that, but the customer claimed Beyn violated his fiduciary duty and was negligent for engaging in the unreasonable trades. Because of this, the customer alleged $1,000,000.00 in damages in this pending customer dispute.

Experienced losses by investing with Craig Scott Capital broker Edward Beyn? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represent clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.