FINRA Brings Excessive Trading Charge Against Stewart Ginn

FINRA BrokerCheck reports that investors alleged losses because of Stewart Taylor Paxton Ginn Jr. (also known as Stewart Ginn) (CRD#: 4503197, Santa Maria, California). Notably, Ginn works with Independent Financial Group LLC as of September 3, 2015, and worked with Navian Capital Securities LLC in Cincinnati, Ohio from February 18, 2021, to March 10, 2023. Accusations in investor disputes include unsuitable investments, churning, and excessive trading by Ginn. Here’s more.

Independent Financial Group LLC Investor Accused Ginn Of Unsuitable Investment

Evidently, on October 19, 2023, a client of Independent Financial Group LLC filed FINRA Arbitration: 23-03073 about Stewart Ginn. Namely, the client alleged that Ginn provided unsuitable advice. Because of this, the client allegedly sustained damages on structured notes. Therefore, the client requested $250,000 in compensation from Independent Financial Group LLC or Ginn. This arbitration is pending a resolution. However, Ginn claimed that the client selectively highlighted two investments that underperformed.

Stewart Ginn Charged By FINRA With Churning And Excessive Trading

Also, FINRA filed Complaint: 2021072167901 on October 17, 2023, to enforce disciplinary actions against Stewart Ginn for alleged violations. This regulatory action alleges that Ginn churned and excessively traded in the accounts of clients, none of whom were aggressive investors. Supposedly, one client was in her late 80s with a cognitive disability, another a retired individual in her late 70s, and a third retired client in their late 60s. Mainly, FINRA claims that Ginn’s frequent trading, coupled with high commissions, led to over $2,220,000 in losses for the clients. The securities broker and firm apparently made more than $2,240,000 in commissions.

Supposedly, his typical pattern involved recommending large equity positions which were sold quickly, often with minimal price changes. The high commissions - generally three percent on buys and two percent on sells - consistently resulted in losses for these trades. The regulator alleged that he violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Also, FINRA claimed that he violated FINRA Rule 2020 and Rule 15l-1(a)(1) (Regulation BI). This is an ongoing matter.

Independent Financial Group LLC Investor Accused Ginn Of Unsuitable Trading

Specifically, an Independent Financial Group LLC client filed FINRA Arbitration: 22-02778 about Stewart Ginn. Supposedly, Ginn charged excessive commissions and made unsuitable stock trades in their account. On September 11, 2023, Independent Financial Group LLC settled this matter by paying the client $400,000 in damages. However, Ginn claimed that the portfolio was profitable.

Stewart Ginn Disclosed Excessive Commission Charges Allegations By IFG Client

Also, a client of Independent Financial Group LLC contested Stewart Ginn’s sales practices by filing FINRA Arbitration: 23-00678 on March 21, 2023. Allegedly, Ginn charged excessive commissions in the client's account for over-the-counter equities transactions. The securities broker reportedly caused $120,000 in damages. However, the complaint is currently pending, and Ginn denies the allegations.

Independent Financial Group LLC Investor Accused Ginn Of Unsuitability Due To Age

Additionally, on September 15, 2023, an Independent Financial Group LLC client filed FINRA Arbitration: 23-02504 about Stewart Ginn. Notably, the client alleged that Ginn sold unsuitable investments in light of the client’s age. The products in question were over-the-counter equities, and alleged damages were $1,400,000. This arbitration is currently pending a resolution.

Seek Legal Assistance For Investment Losses

Did you experience losses because of Stewart Ginn? If so, reach out to Soreide Law Group or call them at (888) 760-6552 to discuss your situation with a securities attorney regarding the potential recovery of your investment losses. Soreide Law Group has a history of recovering losses for investors across the United States. They operate on a contingency fee basis, meaning they only get paid if you do, and advance all costs associated with the legal process. Stewart Ginn and the brokerage firms he worked with, namely Independent Financial Group LLC, denied accusations of sales practice violations.