Securities and Exchange Commission Charges J.P. Turner with Compliance Failures After Brokers Churned Customer Accounts

Posted

The Securities and Exchange Commission announced that it charged three brokers with “churning” the accounts of several customers who had conservative objectives.  The churning, according to the SEC resulted in severe losses in the customers’ accounts while the brokers received substantial fees/commissions.  Churning is a fraudulent practice in which the broker intentionally engages in excessive trading in securities for the sole or primary purpose of generating excessive fees.

The SEC claims that brokers Ralph Calabro, Jason Konner, and Dimitrios Koutsoubos engaged in churning while they worked at J.P. Turner.  In total, they together generated commissions of $845,000, while their customers suffered losses of $2.7 million.  The SEC claims that J.P. Turner failed to implement sufficient compliance measures to prevent its brokers from engaging in the alleged churning.  J.P. Turner and its president William Mello have purportedly agreed to settle the SEC’s charges regarding their compliance failures.

KKBS handles churning and suitability cases against brokerage firms.  Partner Vincent D. Slavens handled numerous such cases, including a case against J.P. Turner.  If you have lost money as a result of a broker or firm engaging in churning or other wrongful conduct, please contact Mr. Slavens at vslavens@kkbs-law.com or 619-232-0331.