Securities Lawyers Blog
According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Donald Fowler (Fowler), previously associated with Worden Capital Management LLC, has been subject to at least 4 disclosable events. These events include 2 customer complaints, 2 regulatory events. Several of those complaints against Fowler concern allegations of high frequency trading activity also referred to as churning or excessive trading among other securities laws violations.
FINRA BrokerCheck shows a final customer complaint on August 25, 2021.
Without admitting or denying the findings, Fowler consented to the sanction and to the entry of findings that he churned and excessively traded four customers’ accounts. The findings stated that while exercising de facto control over the customers’ accounts, Fowler recommended excessive activity and his customers routinely followed his recommendations. Fowler’s trading in the customers’ accounts was excessive and, with reckless disregard for the customers’ interests, conducted to maximize his commissions. Fowler employed an investment strategy that entailed short-term in-and-out trades and he used margin as a means to increase the buying power in his customers’ accounts. Fowler’s trading of the four accounts resulted in high turnover rates and cost-to-equity ratios. The customers paid a total of $949,356 in commissions and suffered $1,095,778 in losses. Therefore, Fowler willfully violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and violated FINRA Rules 2111, 2020, and 2010.
