Broker barred for excessive trading that cost clients $1.8 million

Gregory T. Dean had admitted guilt a few weeks ago in a different case brought by the SEC

Aug 16, 2019 @ 3:58 pm

By Greg Iacurci

The brokerage industry's regulator has barred broker Gregory T. Dean from the industry for excessively trading customer accounts, which led to $1.8 million in losses for clients but generated hefty commissions for him.

Mr. Dean, formerly registered with Worden Capital Management, excessively traded and churned the accounts of seven clients between December 2014 and December 2017, according to the Financial Industry Regulatory Authority Inc.

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The level of trading activity made it "nearly impossible" to generate profits for clients and showed Mr. Dean acted "with reckless disregard for customers' interest," Finra said in a filing Thursday.

In addition to the cumulative $1.8 million in account losses, the activity generated $716,000 in commissions, fees and margin interest charged to customers, according to Finra.

(More: Finra dings Edward Jones for underreporting alleged damages in customer complaints)

Liam O'Brien, Mr. Dean's attorney, didn't immediately return a request for comment.

Separately, on June 10, Mr. Dean admitted guilt in a civil case brought by the Securities and Exchange Commission, saying he had "knowingly or recklessly" made trade recommendations to customers and engaged in unauthorized trading of client accounts between 2011 and 2014 while registered with the broker-dealer J.D. Nicholas & Associates Inc.

Mr. Dean agreed to pay $558,000 in penalties, disgorgement and interest. He was barred by the SEC June 26.

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