The law office of Gana LLP is investigating a string of securities arbitration cases involving brokers associated or formerly associated with Global Arena Capital Corp (Global Arena) and Whitewood Group, Inc (Whitewood Group). Two such brokers include Mark Lisser (Lisser) and Benjamin Brown Jr. (Brown).
FINRA recently brought an action against Brown alleging that between October 19, 2012, and December 10, 2012, while registered with Whitewood Group, Brown effected 30 transactions while exercising discretion without written authorization in a customer’s account. From August 2011, until November 2011, Brown was associated with Global Arena. Thereafter, from February 2012, through May 2013, Brown was registered with Whitewood Group. Finally, from May 2013 until December 2013, Brown was associated with Salomon Whitney LLC. Brown has had two customer complaints filed against him, both alleged churning and unsuitable investments.
In FINRA’s action against Brown, it is against the industry’s rules for a registered representative to exercise any discretionary power in a customer’s account unless such customer has given prior written authorization and the account has been accepted by the member in writing. FINRA found that between October 19, 2012, and December 10, 2012, Brown effected 30 option transactions while exercising discretion in one customer’s account without the customer’s prior written authorization to exercise discretion to engage in discretionary trading.
Often times, authorized trading goes hand and hand with churning. One of the elements of a churning claim is that the broker exercised control over the account. Control can be shown through various factors including whether the transactions are made at the broker’s discretion or through unauthorized trades or the acquiescence of the customer to the trading strategy.
Investors who have suffered losses through excessive trading and churning may be able recover their losses through arbitration. The attorneys at Gana LLP are experienced in representing investors in cases where brokerage firms fail to supervise their representatives trading in client accounts. Our consultations are free of charge and the firm is only compensated if you recover.