Excessive Trading or Churning

A claim for churning arises when a broker excessively trades securities in an investment account in order to generate commissions. Churning is a violation of industry standards and constitutes fraud. A FINRA arbitration claim for excessive trading or churning can be attributed to breach of fiduciary duty and a conflict of interest for a recommended investment strategy whose sole purpose is to enrich a broker firm and its broker to generate excessive commissions, fees or costs. A FINRA arbitration panel evaluating a churning claim will analyze who exercised control over the account and whether the trading activity was excessive based upon the claimant’s risk tolerance and investment objectives.

If you are the victim of excessive trading or churning immediately contact the attorneys at Mathews Giberson LLP to learn more about your rights.

Please contact us at 954-463-1929 to discuss your particular needs. We look forward to hearing from you.