Stewart Ginn (also known as Stewart Taylor and Paxton Ginn Jr.), of Santa Maria, California, a stockbroker registered with Independent Financial Group LLC, is the subject of a Financial Industry Regulatory Authority (FINRA) Complaint in which the regulator is seeking sanctions against Ginn based upon allegations that Ginn churned customer accounts. Department of Enforcement v. Stewart Ginn, Disciplinary Proceeding No. 2021072167901 (October 17, 2023).
FINRA Department of Enforcement alleges that Ginn, while registered through Independent Financial Group LLC, engaged in excessive trading and churning of five customers’ accounts between July of 2020 and December of 2022. Allegedly, the customers were not aggressive investors, and three were retired seniors, with one elderly individual even suffering from Alzheimer’s. The Complaint alleged that Ginn engaged in frequent in-and-out trades, charging excessive commissions and causing over $2,220,000.00 in realized losses while generating more than $2,240,000.00 in commissions for himself and the firm.
Department of Enforcement alleged that the stockbroker recommended large equity positions and quickly sold them, resulting in losses due to high commissions. He also supposedly traded on a discretionary basis without written authorization.
His trading allegedly resulted in annualized cost-to-equity ratios ranging between 14 and 27 percent in customer accounts, making it unlikely for the customers to realize a profit.
Therefore, FINRA Department of Enforcement alleged that Ginn violated Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, and FINRA Rules 2020 and 2010.
FINRA Public Disclosure shows that Ginn is referenced in six customer initiated investment related disputes concerning Ginn’s conduct while associated with securities broker dealers. On September 11, 2023, a customer initiated investment related FINRA securities arbitration claim involving Ginn’s conduct was settled for $400,000.00 in damages based upon allegations that Ginn engaged in excessive trading and made unsuitable recommendations in over-the-counter equities and stocks when Ginn was associated with Independent Financial Group LLC. FINRA Arbitration No. 22-02778.
On March 21, 2023, a customer filed an investment related FINRA securities arbitration claim involving Ginn’s conduct in which the customer requested $120,000.00 in damages based upon allegations that Ginn charged excessive commissions in connection with the sale of over-the-counter equities during the time that Ginn was associated with Independent Financial Group LLC. FINRA Arbitration No. 23-00678.
Ginn is also referenced in a customer initiated investment related FINRA securities arbitration claim in which the customer requested $1,400,000.00 in damages based upon allegations that Ginn made unsuitable recommendations in connection with the sale of equities. FINRA Arbitration No. 23-02504 (September 15, 2023).
On December 14, 2023, a different customer filed an investment related FINRA securities arbitration claim involving Ginn’s conduct in which the customer requested $1,618,000.00 in damages based upon alleged negligence, breach of fiduciary duty, misrepresentation, breach of contract, negligent supervision, excessive trading, churning, and fraud connection with the sale of over-the-counter equities by the stockbroker. FINRA Arbitration No. 23-03531.
Ginn has been registered with Independent Financial Group LLC in Santa Maria, California, and Denver, Colorado, since September 3, 2015. Ginn was previously registered with Navian Capital Securities LLC in Cincinnati, Ohio, between February 18, 2021, and March 10, 2023.
