FINRA’s complaint focuses on several areas of potential misconduct. According to the allegations, from the start of his employment with Craig Scott Capital, Beyn aggressively traded his customers’ accounts without regard to the suitability of his recommended trading and regardless of the customers’ investments objectives and risk tolerance. In order to effectuate this scheme, Beyn used a short-term trading strategy of buying and selling equities of companies who recently released their earnings reports in the customers’ accounts as a means to turn over the accounts quickly and generate outsized commissions for himself and Craig Scott Capital.
FINRA alleged the churning and excessive trading in the nine accounts of the six customers resulted in annualized turnover rates as high as 188 and annualized cost-to-equity ratios as high as 573%. Due to Beyn’s excessive trading, there was little to no possibility that the customers would profit from such trading, which of course, is the point of opening an account with a brokerage firm.
Based upon the foregoing misconduct, FINRA alleges Beyn violated FINRA Rules 2010, 2020, 2111, and NASD Conduct Rule 2310, as well as Section 10(b) of the Securities Exchange Act of 1934, Rule l0b-5 thereunder. According to FINRA, Beyn failed to observe high standards of commercial honor and just and equitable principles of trade by engaging in the foregoing conduct, and thereby violated FINRA Rule 2010.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages investing with Beyn through Craig Scott Capital, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation or complete our free case evaluator.