Sign of the Financial Industry Regulatory Authority

Stephen James Sullivan (also known as Stephen Sullivan) of New York New York a stockbroker formerly registered with Newbridge Securities Corporation is referenced in a Financial Industry Regulatory Authority (FINRA) investigation in which he might face disciplinary action from the regulator based on allegations of defrauding customers by churning their accounts and making excessive trades. FINRA Case No. 20190619526 (August 10, 2021).

According to the claim, Sullivan might face disciplinary action for churning customer accounts. The regulator indicated that Sullivan potentially violated FINRA Rules 2010 and 2020 as well as Securities Exchange Act of 1934 Section 10(b) and SEC Rule 10b-5. The investigation also shows that Sullivan might face disciplinary action for making unsuitable trades in customer accounts. The stockbroker potentially violated FINRA Rules 2010 and 2111 for having customers invest according to an unsuitable strategy.

This would not be the first time that Sullivan faced disciplinary action by the regulator. He has been fined $5,000.00 and suspended from associating with any FINRA member in any capacity based upon findings that he made unauthorized trades in customer accounts during the period that First Midwest Securities employed him. Letter of Acceptance Waiver and Consent No. 2014039219802 (February 3, 2016).

Sullivan has been identified in three customer initiated investment related disputes involving accusations of his wrongdoing while he was registered with securities broker dealers, including SW Financial, First Midwest Securities, and Newbridge Securities Corp. FINRA Public Disclosure shows that a customer filed an investment related complaint regarding Sullivan’s conduct where they requested $27,592.10 in damages supported by allegations of unauthorized trading by Sullivan at First Midwest Securities.

On October 10, 2019, a customer initiated investment related complaint involving Sullivan’s activities was resolved for $39,998.00 in damages based on accusations that Sullivan breached a fiduciary duty to the customer in reference to stock trades at SW Financial. The claim alleges breach of contract and negligence by the stockbroker pertaining to his stock trades for the customer’s SW Financial account. Allegations also include unauthorized and excessive trading. The customer was allegedly defrauded on Sullivan’s stock trades between August of 2018 and October of 2018.

Sullivan is also the subject of a customer initiated investment related FINRA securities arbitration claim in which the customer sought $34,000.00 in damages founded upon accusations of negligence and breach of contract by Sullivan as it pertained to stock trades that he made in the customer’s account while registered with Newbridge Securities Corp. Financial Industry Regulatory Authority (FINRA) Arbitration No. 21-01811 (August 10, 2021). According to the claim, Sullivan excessively and inappropriately traded the customer’s account. The claim also alleges that Sullivan made unauthorized trades and breached a fiduciary duty relating to the equity transactions.

Sullivan’s registration with Newbridge Securities Corporation was terminated on November 22, 2017. He was registered with Worden Capital Management between November 29, 2017, and May 8, 2018, and SW Financial between May 8, 2018, and December 2, 2019. Sullivan has been registered with Spartan Capital Securities since November 1, 2019.