Sean McCabe Suspended over Alleged Trading Violations
Sean McCabe (CRD# 5479643), a broker registered with Network 1 Financial Securities, excessively and unsuitably traded a customer’s account, according to a regulatory sanction. MDF Law is investigating the Hauppauge, New York-based financial professional for similar conduct. If you suffered losses on transactions he recommended, contact us for a free consultation about your recovery options.
To learn more about Mr. McCabe’s alleged rule violations, continue reading this post. The information below is based on a January 14, 2025 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record.
Why Did FINRA Sanction Sean McCabe?
On December 11, 2024, FINRA released a Letter of Acceptance, Waiver, and Consent (# 2019060753510) outlining its disciplinary action against Mr. McCabe. As the letter alleges, he “recommended high frequency in-and-out trading.” Among other things, he recommended that the customer sell a position he recently opened, even though the security’s price “had not materially changed.” The customer in question was “a dairy farmer in his late fifties with a speculative risk tolerance,” according to the letter. It goes on to state that the customer “relied on [Mr.] McCabe’s advice and routinely followed his recommendations.” The alleged in-and-out trades resulted in commissions of $19,275 and realized losses of $57,445.
Finding that his trading activity violated FINRA rules, the regulator issued him a fine of $5,000. It also ordered him to pay restitution of $19,275 and suspended him for three months.
Investors File Disputes Against Network 1 Broker
Between 2023 and 2024, two parties of investors filed disputes involving Mr. McCabe. One alleges negligence and failure to provide downside protection. The other alleges that he recommended unsuitable investments, committed fraud, breached contract, and breached his fiduciary duty. Both disputes are still pending, and both seek unspecified damages.
Past Disputes Settled for 6 Figures
The above-described pending investor disputes are not the only ones in Mr. McCabe’s past. Between 2014 and 2022, six other parties of investors lodged claims involving him. These disputes included allegations of negligence, excessive trading, unsuitable recommendations, fraud, misrepresentation, and unauthorized trading. His former member firms settled the claims for more than $340,000.
FINRA: Broker Based in Hauppauge, New York
Mr. McCabe started his career as a broker when he joined Woodstock Financial Group in 2008. He departed that firm in 2010 for National Securities Corporation, leaving in 2014 for Four Points Capital Partners. After spending one year at Four Points, he joined Worden Capital Management in 2015, eventually departing in 2020. That same year, he joined Network 1 Financial Securities’ office in Hauppauge, New York, where he remains today.
Investors Have Rights. MDF Law Defends Them
If you have concerns regarding investments recommended by Sean McCabe, you may have recovery options. Call MDF Law at 800-767-8040 to receive a free consultation about your situation. Not only do we take all cases on contingency—clients only pay a fee if they win—but we also offer free consultations to investors nationwide. Your time to file a clim may be limited, so don’t delay: contact MDF Law today.