Broker Jonathan Ebel Accused of Excessive Trading and Subject to Tax Liens

shutterstock_128655458-300x200Jonathan Ebel, a financial advisor currently employed at Network 1 Financial Securities, Inc. (Network 1 Financial), has been subject to at least one customer complaint during the course of his career.  Additionally, Ebel has also been subject to a tax lien. His most recent customer complaint alleges excessive trading and unsuitable trading.  According to a BrokerCheck report, in May 2018, Ebel was accused of excessively trading his client’s account and purchasing unsuitable investments. This matter settled for $30,000.00. Additionally, in December 2016, Ebel disclosed a tax lien in the amount of $31,962.00.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typically trade in and out of securities, sometimes even the same stock, many times over a short period of time.  Often times the account will completely “turnover” every month with different securities.  This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades.  Churning is considered a species of securities fraud.  The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions.  A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements.  Certain commonly used measures and ratios used to determine churning help evaluate a churning claim.  These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

Furthermore, Large tax liens on a broker’s CRD can be a red flag that the broker may be influenced to engage in high commission activity in order to satisfy personal debts.  FINRA discloses information concerning a broker’s financial condition because a broker’s inability to handle their own personal finances has also been found to be material information in helping investors determine if they should allow the broker to handle their finances..

Ebel entered the securities industry in 2011. From 2011 through August 2012, Ebel was registered with EKN Financial Services, Inc. FINRA expelled this firm in October 2012. From 2012 through 2015, Ebel was registered with Rockwell Global Capital, LLC. From 2015 through 2019, Ebel was registered with Laidlaw & Company (UK), LTD. Since May 2019, Ebel has been registered with Network 1 Financial Securities, Inc.

At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to excessive trading and suitability violations.  Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation.  Claims may be brought in securities arbitration before FINRA.  Our consultations are free of charge and the firm is only compensated if you recover.

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