The Investor’s Watchdog

The Investor's Watchdog

Former SW Financial Registered Representative Consents to FINRA Sanctions to Resolve Allegations of Excessive Trading and Mismarking Sale Orders

Monday, August 26, 2019

The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) to resolve allegations of securities industry rules violations against former registered representative Richard Coleman.

According to his FINRA BrokerCheck report, Coleman was associated with FINRA as a general securities representative since 1998. He has been associated with twenty firms since becoming a member firm, eight of which were expelled by FINRA. Most recently, Coleman was associated with SW Financial in Melville, New York from May 2018 to March 2019.

FINRA alleges in the AWC that between October 2015 and February 2017, Coleman excessively traded four customers’ accounts that resulted in high turnover rates and cost-to-equity ratios as well as combined losses of over $225,000 and nearly $140,000 in commissions and fees. FINRA further asserts that Coleman marked sale orders as unsolicited and caused SW Financial to keep inaccurate books and records.

Based on the foregoing, Coleman violated FINRA Rules 2111, 4511, and 2010. Without admitting or denying the allegations made against him by FINRA, Coleman agreed to a two-year suspension from associating with any FINRA member firm, a $15,000 fine and $139,930 in restitution, plus interest.

According to his BrokerCheck report, Coleman has an extensive disclosure history that includes criminal activity, bankruptcy, a civil judgment, tax lien, and numerous customer disputes alleging unsuitable investments and excessive trading, among other things. On February 6, 2012, Coleman consented to a three-month suspension and $15,000 in civil penalties to resolve allegations that he engaged in a pattern of excessive trading in a customer’s account, in light of his investment objectives, financial situation, and needs.

If a broker was not properly supervised while registered at a brokerage firm, the firm can be held liable for the broker’s misconduct. Did your broker’s misconduct cost you money? If so, you may be able to recover from your broker or his or her last associated brokerage firm. Since 1998, we have been representing victims of investment fraud and broker misconduct. Call us at 1-877-410-8172 today for a free, no obligation consultation.

Author: Jason T. Albin

Jason Albin is an Attorney and Partner at ChapmanAlbin, the investor rights law firm. He has represented hundreds of investors who have lost money due to broker misconduct, unsuitable investment advice and fraud.​ Jason also represents individuals in “whistleblower” suits filed against unscrupulous companies that try to defraud the US federal and state governments.

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