Sean McCabe

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Sean Mccabe (Mccabe), currently associated with Network 1 Financial Securities Inc., has at least 3 disclosable events. These events include 2 customer complaints, one tax lien, alleging that Mccabe recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a final customer complaint on December 11, 2024.

Without admitting or denying the findings, McCabe consented to the sanctions and to the entry of findings that he excessively and unsuitably traded a customer’s account. The findings stated that McCabe recommended high frequency in-and-out trading to the customer, including recommending that the customer sell a position he had recently opened even when the price of the security had not materially changed. The customer, a dairy farmer in his late fifties with a speculative risk tolerance, relied on McCabe’s advice and routinely followed his recommendations. As a result, McCabe exercised de facto control over the customer’s account. McCabe’s trading in the customer’s account generated $19,275 in commissions and caused $57,445 in realized losses.

The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Sean McCabe (McCabe). According to BrokerCheck records McCabe has been the subject of at least four customer complaints. The customer complaints against McCabe allege a number of securities law violations including that the broker made unsuitable investments, unauthorized trading, and churning (excessive trading) among other claims.

The most recent complaint was filed in March 2016 and alleged breach of fiduciary duty, negligence, misrepresentation, and negligence causing $550,000 in damages. The complaint is currently pending. Also in March 2016 another investor filed a similar complaint and alleged breach of fiduciary duty, negligence, misrepresentation, and negligence causing $150,000 in damages. The complaint is currently pending

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical 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.

Articles Tagged with Sean McCabe

There are Recent Customer Complaints with Broker Sean Mccabe in Firm Network 1 Financial Securities Inc.

Worden Capital Broker Sean McCabe Subject to Churning Complaints