Independent Financial Group, LLC broker Stewart Ginn (CRD# 4503197) is accused of churning and excessively trading client accounts. He has been registered with Independent Financial Group, LLC in Santa Maria, California, since 2015. Previously, he was registered with Navian Capital Securities LLC in Cincinnati, Ohio, from 2021 to 2023, and with Newbridge Securities Corporation in New York, New York, from 2009 to 2015.
In October 2023, FINRA opened an investigation alleging that he churned and excessively traded customer accounts. The FINRA complaint alleges that “none of the customers was an aggressive investor, one of the customers was in her late 80s and suffering from Alzheimer’s disease; a second retired customer was in her late 70s; and a third retired customer was between 69 and 71 years old. Ginn engaged in frequent in-and-out trades in the customer accounts, while charging high commissions on both buys and sells.”
According to FINRA, his trading allegedly incurred losses of more than $2.22 million, while generating more than $2.24 million in commissions. FINRA alleged that he “routinely recommended that the customers buy large equities positions, which he often quickly sold, even when the price of the stocks had changed only minimally. Because of the high commissions Ginn charged-generally three percent on buy transactions and two percent on sell transactions-the customers routinely incurred losses on such trades.”
The FINRA complaint also alleges that he “recommended a series of transactions to one of the customers that was excessive and quantitatively unsuitable in light of the customer’s investment profile. The complaint further alleges that in a majority of the customer accounts, Ginn improperly traded on discretion and frequently engaged in buying and selling securities without obtaining customer authorization for each transaction. Disregarding the cumulative impact of his excessive, high-cost trading, Ginn persisted in placing frequent trades in each of the customers’ accounts, even as each account incurred substantial realized losses.”
Stewart Ginn Customer Complaints
He has been the subject of five customer complaints between 2007 and 2023, one of which was closed without action, according to his CRD report:
October 2023. “Alleges investment was not suitable.” The customer is seeking $250,000 in damages, and the case is currently pending. The complaint was regarding structured note investment losses, and it took place while he was registered with Independent Financial Group, LLC.
September 2023. “Alleges investments were not suitable in light of Claimant’s age.” The customer is seeking $1,400,000 in damages, and the case is currently pending. The complaint was regarding equity OTC investment losses, and it took place while he was registered with Independent Financial Group, LLC.
March 2023. “Claim that accounts were subject to excessive commission charges. No allegations of loss or other damages.” The customer is seeking $120,000 in damages, and the case is currently pending. The complaint was regarding equity OTC investment losses, and it took place while he was registered with Independent Financial Group, LLC.
December 2022. “Client alleges that commissions were excessive, that the investments in her account were unsuitable and that sales in her account resulted in significant profit which, in turn, created capital gains and a tax liability.” The customer sought $1,300,000 in damages, and the case was settled for $400,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Independent Financial Group, LLC may be liable for investment or other losses suffered by Stewart Ginn’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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