Finra alleges broker took in more than $1.7 million in commissions churning accounts at Craig Scott Capital

Edward Beyn profited by excessively trading accounts of customers who were over the age of 60, the regulator alleges

Mar 17, 2016 @ 1:11 pm

By Christine Idzelis

Broker Edward Beyn collected more than $1.7 million in commissions and fees by excessively trading his clients' accounts while registered at Craig Scott Capital, according to the Financial Industry Regulatory Authority Inc.'s Department of Enforcement.

Mr. Beyn churned nine accounts of six customers, all over the age of 60, from March 2012 through May 2015, profiting as he violated securities rules, Finra's Department of Enforcement alleged in a complaint filed Wednesday. His short-term trading strategy involved quickly turning over the accounts to generate “outsize commissions for himself” and Craig Scott Capital, according to the complaint.

The customers ranged in age from 61 to 72 when their accounts were opened with Mr. Beyn, and included business owners involved in construction, welding equipment and airline parts, according to the complaint. All suffered net losses.

“He relied heavy on buying and selling equities of companies releasing their earnings reports as a catalyst for excessively trading,” the complaint says.

Mr. Beyn is now registered with Rothschild Lieberman in Syosset, N.Y., according to Finra's BrokerCheck. Mr. Beyn didn't immediately return a phone call seeking comment on Finra's allegations.

Rothschild Lieberman, founded in 1981, is based in New York and has an office in Greenwich, Conn., according to its website. My Beyn has been registered with the firm since September.

Craig Scott Taddonio, the founder and CEO of Uniondale, N.Y.-based Craig Scott Capital, didn't return phone calls seeking comment about Finra's complaint against Mr. Beyn.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

Why some retirement plan advisers think Fidelity is invading their turf

InvestmentNews editor Frederick P. Gabriel Jr. and reporter Greg Iacurci talk about this week's cover story that looks at whether Fidelity Investments is stepping on the toes of retirement plan advisers.

Latest news & opinion

Cetera reportedly exploring $1.5 billion sale

The company confirmed it's talking to investment bankers to 'explore how to best optimize [its] capital structure at lower costs.'

SEC Chairman Jay Clayton outlines goals for a new fiduciary standard

Rule should provide clarity on role of adviser, enhanced investor protection and regulatory coordination.

Advisers bemoan LPL's technology platform change

Those in a private LinkedIn chat room were sounding off about fears the independent broker-dealer will require a move to ClientWorks before it is fully ready.

Maryland jumps into fiduciary fray with legislation requiring brokers to act in best interests of clients

Legislation requires brokers to act in the best interests of clients.

8 apps advisers love for getting stuff done

Smartphone apps that advisers are using in 2018 to run their business more efficiently.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print