EDWARD S SHORT Fined and Suspended

The Financial Industry Regulatory Authority (FINRA) has fined and suspended New York broker, EDWARD SCOTT SHORT (EDWARD S SHORT), on January 31, 2023, over alleged violations of the Securities and Exchange Commission’s Regulation Best Interest, or Reg BI. Reg BI went into effect on June 20, 2020, and requires all broker/dealers to act in best interests of their clients when making recommendations. Short was registered with LAIDLAW & CO (UK) LTD. of Melville, New York, from 10/02/2012 to 10/13/2022.

According to the FINRA report, without admitting or denying FINRA’s findings, EDWARD S SHORT consented to the sanctions and to the entry of findings that he allegedly willfully violated the Best Interest Obligation under Rule 15l-1 of the Securities Exchange Act of 1934 (Regulation BI) by recommending a series of trading in an elderly client's account that was excessive, unsuitable, and not in the client's best interest.

FINRA’s findings stated that the client allegedly relied on Short's advice and routinely followed his recommendations and, as a result, EDWARD S SHORT exercised de facto control over the client's account.

According to the FINRA report, as a result of Short's trading, the client's account allegedly generated $116,859 in commissions and resulted in approximately $185,000 in trading losses, an annualized cost-to-equity ratio of 76.53%, and an annualized turnover rate of 47.49. The high cost-to-equity ratio meant the client's account would have to grow by more than 76% annually just to break even. FINRA reported that this level of trading was excessive, unsuitable, and not in the client's best interest.

FINRA stated that EDWARD S SHORT agreed to a seven-month suspension from February 6, 2023 to September 5, 2023, and to pay a $5,000 fine and $116,859 in restitution, plus interest.

According to FINRA’s BrokerCheck, available on FINRA’s website to the public, EDWARD S SHORT, has been in the securities industry for 28 years and was listed with 8 firms.  Short has 6 disclosures on his FINRA CRD report, 4 are “Customer Disputes.” Short is currently not registered.

If you or an elderly family member have experienced financial losses due to the actions or recommendations of EDWARD S SHORT formerly of LAIDLAW & CO (UK) LTD. of Melville, New York contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.

Soreide Law Group represents our clients nationally before FINRA on a contingency fee basis.