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

+ Zoom

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

Featured video

Events

Pershing's Dolly: Lessons in leadership

Women are holding top leadership roles as CEOs of some of the industry’s top firms, but it’s still the exception rather than the norm. Lisa Dolly of Pershing talks about how to balance it all.

Latest news & opinion

Retirement planning for women

Longer lifespans and lower savings require creative income strategies.

Sean Spicer resigns as press secretary after Anthony Scaramucci is appointed communications director

Scaramucci is known as an ardent foe of the DOL fiduciary rule, having said during the campaign that Trump would repeal it .

Redoing the math on a 4% retirement withdrawal rate

Given the current interest-rate environment and other factors, advisers disagree about whether the number is too conservative or not conservative enough.

House panel passes bill to replace DOL fiduciary rule with one requiring disclosure of conflicts

Measure likely to continue in partisan advance in House, but could stall in Senate.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print