Case 1: Tory A. Duggins – A Cautionary Tale

Tory A. Duggins, a financial advisor with a lengthy career, has been suspended for 18 months due to excessive trading. Between December 2016 and April 2022, Duggins engaged in aggressive trading strategies, resulting in:

• High Trading Costs: $444,176 in total trading costs
• Significant Losses: $235,494 in realized losses

Duggins also failed to disclose a serious customer complaint, further highlighting his disregard for ethical standards.

Case 2: John Palma – Alleged Churning Scandal

John Palma of Spartan Capital Securities is under investigation for excessive trading, also known as churning, causing massive losses for an elderly investor. In just six months:

• Unnecessary Trades: Nearly $3.3 million in purchases
• High Commissions: $114,625 in fees
• Fraudulent Practices: Misleading statements and forged signatures

These actions were not in the investor’s best interest but served to line Palma’s pockets.

Why It Matters

Excessive trading and churning are serious breaches of fiduciary duty. They lead to high costs, substantial losses, and undermine the trust you place in financial advisors. Don’t let misconduct go unchecked!