{"id":4082,"date":"2017-01-09T13:37:15","date_gmt":"2017-01-09T19:37:15","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4082"},"modified":"2022-03-28T11:23:24","modified_gmt":"2022-03-28T16:23:24","slug":"sec-charges-ny-based-brokers-fraud-excessive-trading","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-charges-ny-based-brokers-fraud-excessive-trading\/","title":{"rendered":"SEC Charges NY-Based Brokers with Fraud, Excessive Trading"},"content":{"rendered":"<p>\t\t\t\tThe US Securities and Exchange Commission is charging two brokers with<a href=\"https:\/\/www.stockbroker-fraud.com\"> securities fraud<\/a>. The regulator claims that Donald J. Fowler and Gregory T. Dean fraudulently employed an in-and-out trading strategy that was not suitable for customers so that they could make more in commissions. Because of their actions, 27 customers alleged lost substantial amounts of money. Fowler and Dean are accused of violating the Securities Act of 1933 and the Securities Exchange Act of 1934, and Rule 10-B5.The Commission said that they examine trading patterns involving over two dozen of the brokers\u2019 customer accounts.<\/p>\n<p>The SEC contends that the two men did not engage in any due diligence to figure out whether their investment strategy could help customers obtain even the smallest profit. With their strategy, they engaged in the frequent purchase and sale of securities, which would both take place within a two-week or shorter timeframe. They charged customers a commission for every transaction. Meantime, Fowler and Dean were the only ones who had a chance of making a profit.<\/p>\n<p><strong>SEC Warns Investors to Look Out for Excessive Trading, Churning<\/strong><\/p>\n<p>Along with its announcement of this securities case, the SEC put out an<em> Investor Alert<\/em> cautioning the public about churning and excessive trading. In its alert, the regulator warned about red flags that may be signs of these types of fraud, including trading that a customer did not authorize, which is known as <a href=\"https:\/\/www.stockbroker-fraud.com\/unauthorized-trading\">unauthorized trading,<\/a> trading that happens more often than seems reasonable for a customer\u2019s investment objectives and\/or the level of risk that the portfolio can handle, and suspicious and\/or unusually high fees.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/sec-charges-ny-based-brokers-fraud-excessive-trading\/#more-4082\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Securities and Exchange Commission is charging two brokers with securities fraud. The regulator claims that Donald J. Fowler and Gregory T. Dean fraudulently employed an in-and-out trading strategy that was not suitable for customers so that they could make more in commissions. Because of their actions, 27 customers alleged lost substantial amounts of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3773,3775,3801,3760,1],"tags":[],"class_list":["post-4082","post","type-post","status-publish","format-standard","hentry","category-broker-fraud","category-churning","category-sec","category-sec-enforcement","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SEC Charges NY-Based Brokers with Fraud, Excessive Trading &#8212; Investor Lawyers Blog &#8212; January 9, 2017<\/title>\n<meta name=\"description\" content=\"The US Securities and Exchange Commission is charging two brokers with securities fraud. The regulator claims that Donald J. Fowler and Gregory T. Dean &#8212; January 9, 2017\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/sec-charges-ny-based-brokers-fraud-excessive-trading\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"SEC Charges NY-Based Brokers with Fraud, Excessive Trading &#8212; Investor Lawyers Blog &#8212; January 9, 2017\" \/>\n<meta name=\"twitter:description\" content=\"The US Securities and Exchange Commission is charging two brokers with securities fraud. The regulator claims that Donald J. Fowler and Gregory T. Dean &#8212; January 9, 2017\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"SEC Charges NY-Based Brokers with Fraud, Excessive Trading &#8212; Investor Lawyers Blog &#8212; January 9, 2017","description":"The US Securities and Exchange Commission is charging two brokers with securities fraud. The regulator claims that Donald J. Fowler and Gregory T. 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