Churing and Excessive Activity
Stockbroker Churning

Shawn Evan Burns of Farmingdale New York a stockbroker associated with SW Financial (also known as Salomon Whitney Financial) has been referenced in a customer initiated investment related arbitration claim which was settled for $12,000.00 in damages supported by allegations that (1) stocks and over the counter equities were traded in the customer’s account by Burns in an excessive manner (2) transactions were wholly unsuitable because of the customer’s investment circumstances and (3) trades were made by Burns without the customer’s permission when the stockbroker was employed by SW Financial. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-02712 (Nov. 7, 2019).

FINRA Public Disclosure reveals that Burns is referenced in twenty-three more customer initiated investment related disputes containing allegations of his violative conduct while associated with securities broker dealers including Salomon Whitney Financial. Specifically, a customer filed an investment related arbitration claim involving Burns’ conduct in which the customer requested $156,557.00 in damages based upon allegations that when Burns was associated with Salomon Whitney Financial, an investment contract was breached, equities were traded in the customer’s account by the stockbroker without the customer’s knowledge or consent, common or preferred stock trades failed to be suitable, the customer’s account was handled in a negligent manner, and the stockbroker’s excessive trading and churning led the customer to suffer unwarranted losses. FINRA Arbitration No. 18-01055 (Apr. 3, 2018).

Another customer filed an investment related arbitration claim concerning Burns’ activities where the customer sought $100,000.00 in damages founded on accusations that when Burns was employed by Salomon Whitney Financial, a contract pertaining to the customer’s investments was breached, stock transactions had been negligently administered, recommendations were unsuitable for the customer in view of the customer’s objectives for investing and tolerance for risk, and stock trades had been executed at excessive and unreasonable amounts. FINRA Arbitration No. 18-03247 (Sept. 20, 2018).

Also, Burns is barred from associating with any FINRA member in any capacity supported by allegations that the stockbroker neglected to respond to the regulator’s request for information about his activities. FINRA Case No. 2017053391601 (Aug. 28, 2017). FINRA revealed that it sent a Suspension from Association letter to the stockbroker on June 19, 2017. The regulator warned him that his failure to resolve that suspension could result in a bar from the securities industry. Burns neglected to comply with FINRA by the August 27, 2017 deadline.

Salomon Whitney Financial discharged Burns on May 6, 2016 supported by allegations that Burns neglected to comply with the securities broker dealer’s directives, and he failed to confirm with the securities broker dealer whether he complied with his obligations relating to the resolution of Salomon Whitney customer complaints containing allegations of his unwarranted and inappropriate over-the-counter equities transactions that resulted in unwarranted losses for customers.

Burns was registered with Salomon Whitney between April 3, 2014 and May 6, 2016.