Broker Took $1.7M By Churning Accounts

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Broker Took $1.7M By Churning Accounts

Broker Edward Beyn allegedly received over $1.7 million in commissions and fees by excessively trading his clients’ accounts, or “churning,” while he was a registered representative with Craig Scott Capital, according to FINRA’s Enforcement Department.

FINRA claims Beyn churned nine accounts of six of his customers, all of whom are over 60 years old, between March 2012 and May 2015, making a profit by violating securities rules. His short-term trading strategy involved quickly churning over accounts to generate “outsize commissions for himself” and Craig Scott Capital, according to FINRA’s complaint.

The clients ranged in age from 61 to 72 at the time they opened their accounts with Beyn. Those clients included business owners involved in construction, welding equipment and airlines parts. All suffered net losses.

“He relied heavy [sic] on buying and selling equities of companies releasing their earnings reports as a catalyst for excessively trading,” according to the complaint.

Beyn is currently registered with Rothschild Lieberman in Syosset, New York, according to FINRA’s BrokerCheck, and has been registered with the firm since September.

If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.

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