Jeff Wright, Garden State Broker, Allegedly Churned Investments

Jeff Wright (CRD# 2538701[1]), a broker registered with Garden State Securities, churned investments, according to a recent dispute. MDF Law is investigating the Red Bank, New Jersey-based financial professional for similar conduct. We urge investors with concerns about their accounts to contact us for a free, confidential consultation. 

The following post contains details about the allegations against Mr. Wright as well as his professional history. The information below is sourced from a December 4, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record.

Pending Dispute Alleges Churning, Unauthorized Trades

On September 19, 2024, an investor lodged a dispute alleging that Mr. Wright churned investments and made unauthorized trades. The claim, which is still pending, seeks $36,000 in alleged damages.

What Does “Churning” Mean?

The dispute involving Mr. Wright involves some fairly common forms of broker misconduct. Churning, for instance, was described by a FINRA official in 2020[2] as “a more egregious variation of excessive trading.” Speaking in a podcast, the regulator explained that excessive trading denotes a broker’s execution of a substantial number of trades in order to generate commissions for himself at the client’s expense. In contrast, churning is a form of excessive trading performed “either with an intent to defraud or with reckless disregard for the customer’s interests.” Both actions violate FINRA rules and securities industry regulations.

Industry Rules Forbid Unauthorized Trades

Then there’s unauthorized trading, which is generally prohibited by three vital FINRA rules. For one, Rule 2010 provides that brokers like Mr. Wright must observe “high standards of commercial honor and just and equitable principles of trades.” At the same time, Rule 3260 prohibits the exercise of discretion in customer accounts without prior written authorization from the customer, as well as their firm’s written approval. (Discretion occurs when broker’s conduct trades without first consulting the customer.) Finally there’s Rule 2020, which states that brokers may not use  “manipulative, deceptive, or other fraudulent device[s] or contrivance[s]” to effect or induce securities transactions. 

FINRA: Jeff Wright Based in Red Bank, New Jersey

Mr. Wright launched his career as a broker in 1995, when he registered with Gruntal & Company. He left the firm later that year for JW Charles Securities, where he remained until 1996. In 1997 he joined R.D. White & Company, leaving that firm in 1998 before joining Merrill Lynch. He worked at Merrill Lynch until 2010, when he departed for Garden State Securities. Still registered with Garden State today, he is based at the firm’s office in Red Bank, New Jersey. With 28 years of experience as a broker, he has completed four industry exams, including the Series 7 and the Series 63. 

MDF Law Advocates for Investors Like You

If you lost money investments recommended by Jeff Wright, you may have grounds to file a FINRA arbitration claim to pursue damages. Contact MDF Law at 800-767-8040 to speak with our team. Our investment fraud attorneys[3] take cases on contingency, meaning our clients only pay a fee if they win—no hourly fees. We currently provide free consultations nationwide, so don’t delay: call MDF Law today.