Churning / Excessive Trading
How Do You Know if a Broker is “Churning” Your Account?
Over 35 years Representing Clients on Wall Street and Across the Nation
Churning occurs when, in order to obtain commissions, a broker causes securities in a customer’s account to be traded with a frequency too great in light of the customer’s financial needs, resources or investment objectives. Churning occurs because many securities brokers play a dual role as both investment advisers and salespersons and because of the compensation system used in the securities industry. If your account has been excessively traded, we can attempt to get back the excessive commissions you incurred, even if the net effect of the trading was profitable.
If you suspect your broker may be “churning” your account, or if you are a broker unfairly accused of such behavior, you should contact an experienced attorney to fight for your interests.
David E. Robbins is a lawyer with over 35 years of experience in securities law and financial regulation. In fact, he is regarded as a leading national authority on the subject. He writes the authoritative textbook Securities Arbitration Procedure Manual — used throughout the country by law schools, law firms and brokerages. He has also written over 40 articles on the subject.
Mr. Robbins has an extraordinary amount of knowledge and experience handling broker misconduct of all forms. He has been a Special Deputy Attorney General of New York in the Securities Fraud Bureau. He then was the director of the Compliance Department and Legal Regulatory Division of the American Stock Exchange.
Accusations of brokers churning clients’ accounts are most often resolved through arbitration. Mr. Robbins has served as an arbitrator for the New York Stock Exchange, the National Association of Securities Dealers, and the American Arbitration Association.
If you believe your broker is excessively trading your account to drive up higher commissions of if you are a broker facing these accusations, call 212-755-3100 or contact us online to schedule a meeting with Mr. Robbins.