Sean Sherwin: PHX Broker Involved in $2 Million Complaint
Sean Sherwin (CRD# 4164630), a broker registered with PHX Financial, made unsuitable investment recommendations, according to allegations found in his BrokerCheck profile. This record, maintained by the Financial Industry Regulatory Authority (FINRA) and accessed on July 19, 2023, notes that he is registered with his firm’s office in New York City. More information about his alleged conduct is available in this post.
Pending Disputes Seeks 7-Figure Damages
On June 26, 2023, an investor filed a dispute alleging that Mr. Sherwin recommended unsuitable pre-IPO alternative investments “with excessive commissions.” The dispute, which remains pending, seeks $2.2 million in damages.
Unpacking FINRA’s Suitability Standard for Brokers
The dispute involving Mr. Sherwin refers to the suitability standard. As FINRA explains, this is a rule requiring brokers to “have a reasonable basis to believe” that their recommendations—whether individual investments or investment strategies—are appropriate for their customer. They determine a recommendation’s suitability by weighing it against the customer’s investment profile, which incorporates such factors as age, experience, objectives, income, risk tolerance, and more.
Breaking the standard down even further, reasonable-basis suitability requires brokers to have a reasonable basis to believe that a recommendation “is suitable for at least some investors.” Then there’s customer-specific suitability, requiring a reasonable basis to believe the recommendation is suitable for the customer they’re making it to. Finally, quantitative suitability concerns numerous transactions in accounts over which the broker has control: even if the trades would be suitable on their own, the broker must also have a reasonable basis to believe that the totality is not “excessive and unsuitable.”
Sean Sherwin Based in New York City
Sherwin, also known as Sean Hosein, started his career as a broker in 2013, when he started working at National Securities Corporation in New York City. He remained with the firm until his departure in May 2022, when he started working at PHX Financial. With ten years of experience as a broker, he has completed three securities industry exams, including the Series 63 and the Series 7.
Can You File a Complaint?
You may have grounds to file a FINRA arbitration claim to recover losses on investments recommended by Sean Sherwin. Reach out to the investor advocates at MDF Law to discuss your case, especially if the following apply to you:
- You experienced losses on investments that were not appropriate for your profile or whose purchase was not authorized;
- Your financial professional did not fully disclose the risks associated your investments, including the potential you might lose your principal;
- Your investments involved fees or other charges that were not fully disclosed;
- Your investments involved a substantial amount of your net worth.
MDF Law’s seasoned attorneys have lengthy experience delivering results for the victims of investment fraud. Call 800-767-8040 for a free consultation about your case today.