{ "version": "https://jsonfeed.org/version/1.1", "title": "Market Manipulation: Churning enforcement actions", "home_page_url": "https://marketmanipulation.org/cases/technique/churning/", "feed_url": "https://marketmanipulation.org/feeds/technique/churning.json", "description": "The 14 most recent enforcement records tagged churning in the Market Manipulation library, each linked to its primary source. Tags are our classification, not the charges.", "language": "en-US", "items": [ { "id": "https://marketmanipulation.org/cases/sec-baris-cabalar-churning-2024/", "url": "https://marketmanipulation.org/cases/sec-baris-cabalar-churning-2024/", "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26161", "title": "SEC v. Baris Cabalar (churning, 2024)", "summary": "In October 2024 the SEC charged Baris Cabalar, a registered representative at PHX Financial, with recommending a short-term, high-volume strategy to eight retail customers from January 2019 to October 2021 without a reasonable basis, leaving them with losses above $1 million while he and the firm received over $400,000 in commissions. The charges include fraud and Regulation Best Interest; the claims were allegations.", "date_published": "2024-10-16T00:00:00.000Z", "tags": [ "SEC", "churning" ] }, { "id": "https://marketmanipulation.org/cases/sec-laidlaw-and-company-uk-ltd-churning-2023/", "url": "https://marketmanipulation.org/cases/sec-laidlaw-and-company-uk-ltd-churning-2023/", "external_url": "https://www.sec.gov/files/litigation/admin/2023/34-98983.pdf", "title": "SEC v. Laidlaw and Company (UK) Ltd. (churning, 2023)", "summary": "In November 2023 the SEC settled with broker-dealer Laidlaw & Company (UK) Ltd., finding it failed to supervise two representatives who recommended an in-and-out trading strategy in nine customer accounts from 2016 to 2018, with cost-to-equity ratios of 203 to 620 percent, and that two others violated Regulation Best Interest's care obligation with excessive recommendations to six customers in 2020 and 2021. The firm was censured and ordered to pay $547,712 in disgorgement, $51,844 in interest and a $223,328 penalty.", "date_published": "2023-11-20T00:00:00.000Z", "tags": [ "SEC", "churning" ] }, { "id": "https://marketmanipulation.org/cases/sec-michael-blumer-john-kuprianchik-david-page-steven-thompson-joseph-todaro-chu/", "url": "https://marketmanipulation.org/cases/sec-michael-blumer-john-kuprianchik-david-page-steven-thompson-joseph-todaro-chu/", "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25863", "title": "SEC v. Michael Blumer, John Kuprianchik, David Page, Steven Thompson, Joseph Todaro (churning, 2023)", "summary": "In September 2023 the SEC charged five Salomon Whitney (SW Financial) registered representatives, Michael Blumer, John Kuprianchik, David Page, Steven Thompson and Joseph Todaro, with recommending and executing over 2,000 trades for at least sixteen retail customers from 2018 to 2022 without a reasonable basis, making a positive return virtually impossible. Customers lost over $1 million while the defendants and firm received over $660,000 in commissions. The claims were allegations.", "date_published": "2023-09-28T00:00:00.000Z", "tags": [ "SEC", "churning" ] }, { "id": "https://marketmanipulation.org/cases/sec-rocco-roveccio-churning-2019/", "url": "https://marketmanipulation.org/cases/sec-rocco-roveccio-churning-2019/", "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-24464", "title": "SEC v. Rocco Roveccio (churning, 2019)", "summary": "In 2019, the Securities and Exchange Commission obtained a judgment against Rocco Roveccio, alleging conduct this library classifies as churning. The release records a civil penalty of $160,000, disgorgement of $147,115, prejudgment interest of $17,499.", "date_published": "2019-05-06T00:00:00.000Z", "tags": [ "SEC", "churning" ] }, { "id": "https://marketmanipulation.org/cases/sec-william-c-gennity-churning-2019/", "url": "https://marketmanipulation.org/cases/sec-william-c-gennity-churning-2019/", "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-24416", "title": "SEC v. William C. Gennity (churning, 2019)", "summary": "In 2019, the Securities and Exchange Commission obtained a judgment against William C. Gennity, alleging conduct this library classifies as churning. The release records a civil penalty of $160,000, disgorgement of $127,686, prejudgment interest of $14,797.", "date_published": "2019-03-04T00:00:00.000Z", "tags": [ "SEC", "churning" ] }, { "id": "https://marketmanipulation.org/cases/sec-zachary-s-berkey-churning-2018/", "url": "https://marketmanipulation.org/cases/sec-zachary-s-berkey-churning-2018/", "external_url": "https://www.sec.gov/files/litigation/admin/2018/34-84461.pdf", "title": "SEC v. Zachary S. Berkey (churning, 2018)", "summary": "In 2018, the Securities and Exchange Commission obtained a judgment against Zachary S. Berkey, alleging conduct this library classifies as churning. The release does not state a monetary figure that we were able to extract.", "date_published": "2018-10-19T00:00:00.000Z", "tags": [ "SEC", "churning" ] }, { "id": "https://marketmanipulation.org/cases/sec-alexander-capital-l-p-churning-2018/", "url": "https://marketmanipulation.org/cases/sec-alexander-capital-l-p-churning-2018/", "external_url": "https://www.sec.gov/files/litigation/admin/2018/34-83562.pdf", "title": "SEC v. Alexander Capital, L.P. (churning, 2018)", "summary": "In June 2018 the SEC settled with broker-dealer Alexander Capital, L.P., finding it failed reasonably to supervise three registered representatives who made unsuitable recommendations, churned customer accounts and traded without authorisation between 2012 and 2014. The firm was censured and ordered to pay $193,775 in disgorgement, $23,437 in interest and a $193,775 penalty.", "date_published": "2018-06-29T00:00:00.000Z", "tags": [ "SEC", "churning" ] }, { "id": "https://marketmanipulation.org/cases/sec-william-c-gennity-churning-2018/", "url": "https://marketmanipulation.org/cases/sec-william-c-gennity-churning-2018/", "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-24108", "title": "SEC v. William C. Gennity and Rocco Roveccio (churning, 2018)", "summary": "In 2018 the SEC's litigation release described its complaint against two former Alexander Capital brokers, William C. Gennity and Rocco Roveccio, over alleged churning. Both later consented to final judgments without admitting or denying the allegations, Gennity on 1 March 2019 and Roveccio on 3 May 2019, and each also consented to an administrative bar from the securities industry and penny stock trading.", "date_published": "2018-04-11T00:00:00.000Z", "tags": [ "SEC", "churning" ] }, { "id": "https://marketmanipulation.org/cases/sec-daniel-t-fischer-churning-2018/", "url": "https://marketmanipulation.org/cases/sec-daniel-t-fischer-churning-2018/", "external_url": "https://www.sec.gov/files/litigation/admin/2018/34-82603.pdf", "title": "SEC v. Daniel T. Fischer (churning, 2018)", "summary": "In 2018, the Securities and Exchange Commission obtained a judgment against Daniel T. Fischer, alleging conduct this library classifies as churning. The release does not state a monetary figure that we were able to extract.", "date_published": "2018-01-30T00:00:00.000Z", "tags": [ "SEC", "churning" ] }, { "id": "https://marketmanipulation.org/cases/sec-laurence-m-torres-churning-2017/", "url": "https://marketmanipulation.org/cases/sec-laurence-m-torres-churning-2017/", "external_url": "https://www.sec.gov/files/litigation/admin/2017/33-10419.pdf", "title": "SEC v. Laurence M. Torres (churning, 2017)", "summary": "In September 2017 the SEC settled with former Alexander Capital registered representative Laurence M. Torres, finding he recommended an unsuitable high-cost pattern of frequent trading to eight customers, misrepresented it, made unauthorized trades, and churned at least three accounts. He was barred from the industry and from penny stock offerings and ordered to pay $225,359 in disgorgement, $25,748 in interest and a $160,000 penalty.", "date_published": "2017-09-28T00:00:00.000Z", "tags": [ "SEC", "churning" ] }, { "id": "https://marketmanipulation.org/cases/sec-markusen-marking-the-close-2016/", "url": "https://marketmanipulation.org/cases/sec-markusen-marking-the-close-2016/", "external_url": "https://www.sec.gov/files/alj/aljdec/2016/id1079jeg.pdf", "title": "SEC v. Steven R. Markusen and Jay C. Cope (marking the close, 2016)", "summary": "In November 2016 an SEC administrative law judge barred Archer Advisors founder Steven R. Markusen and colleague Jay C. Cope from the securities industry by default, following district court judgments that found they billed their funds for sham research fees, marked the close of a thinly traded stock to inflate reported returns, and day-traded the funds' accounts to generate soft dollars. The judgments carried $100,000 penalties each and about $1.18 million in disgorgement.", "date_published": "2016-11-09T00:00:00.000Z", "tags": [ "SEC", "marking-the-close", "churning" ] }, { "id": "https://marketmanipulation.org/cases/osc-paul-christopher-darrigo-churning-2016/", "url": "https://marketmanipulation.org/cases/osc-paul-christopher-darrigo-churning-2016/", "external_url": "https://www.capitalmarketstribunal.ca/en/proceedings/darrigo-re", "title": "OSC v. Paul Christopher Darrigo (churning, 2016)", "summary": "In June 2016 an Ontario Securities Commission panel dismissed Paul Christopher Darrigo's application to review an IIROC decision that found his recommended trades caused unnecessary fees to clients and undue commissions to him, and that he borrowed money from clients. IIROC's sanctions stand: two fines of C$10,000 each, C$95,000 of disgorgement and 12 months of strict supervision on any re-registration.", "date_published": "2016-01-08T00:00:00.000Z", "tags": [ "OSC", "churning" ] }, { "id": "https://marketmanipulation.org/cases/sec-eli-d-okman-churning-2014/", "url": "https://marketmanipulation.org/cases/sec-eli-d-okman-churning-2014/", "external_url": "https://www.sec.gov/files/litigation/admin/2014/33-9671.pdf", "title": "SEC v. Eli D. Okman (churning, 2014)", "summary": "In 2014, the Securities and Exchange Commission settled an action with Eli D. Okman, alleging conduct this library classifies as churning. The release records a civil penalty of $31,964, disgorgement of $31,964, prejudgment interest of $2,910.", "date_published": "2014-10-28T00:00:00.000Z", "tags": [ "SEC", "churning" ] }, { "id": "https://marketmanipulation.org/cases/sec-bresner-churning-2013/", "url": "https://marketmanipulation.org/cases/sec-bresner-churning-2013/", "external_url": "https://www.sec.gov/files/alj/aljdec/2013/id517ce.pdf", "title": "SEC v. Michael Bresner, Ralph Calabro, Jason Konner and Dimitrios Koutsoubos (churning, 2013)", "summary": "In November 2013 an SEC administrative law judge found, after a 17-day hearing, that three former J.P. Turner & Co. brokers, Ralph Calabro, Jason Konner and Dimitrios Koutsoubos, each churned one customer account, and that branch manager Michael Bresner failed to supervise two of them. The decision orders industry bars, $367,000 of combined disgorgement and $435,000 of combined civil penalties.", "date_published": "2013-11-08T00:00:00.000Z", "tags": [ "SEC", "churning" ] } ] }