Have you been a victim of churning?
Churning is a manipulative and deceptive practice in violation that violates Section 10(b), Rule 10b-5 thereunder, and FINRA Rules 2020 and 2010. It is fraudulent conduct that occurs when: (i) a registered representative controls trading activity in an account, (ii) the level of activity in the account is inconsistent with the customer’s objectives and financial situation, and (iii) the registered representative acts with intent to defraud or a reckless disregard for the customer’s interests.
FINRA Rule 2111 governs suitability, and…