Stewart Ginn Allegedly Churned Client Accounts

Stewart Ginn (CRD# 4503197[1]), a broker registered with Independent Financial Group, churned investments, according to a FINRA sanction. MDF Law is investigating the Santa Maria, California-based financial professional for similar conduct. If you have concerns about your accounts, contact us for a free consultation.

More information about the allegations against Mr. Ginn follows below. This post is based on an October 9, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record.

FINRA Suspends Stewart Ginn over Churning Allegations

In a FINRA order (No. 2021072167901[2]) issued on August 29, 2024, Mr. Ginn and the regulator settled allegations that he churned the accounts of five customers. As the order describes, he allegedly excessively traded the accounts of the IFG customers between July 2022 and December 2022. The customers in question were not aggressive investors, and three were retirees. One of the customers was elderly [3]and,” FINRA noted, “was in her late 80s and suffering from Alzheimer’s disease.” 

In spite of this, Mr. Ginn “engaged in frequent in-and-out trades in the five customers’ account.” As FINRA describes, he “recommended that the customers buy large equities positions, which he often quickly sold, even when the price of the stocks had changed only minimally.” His conduct resulted in realized losses of more than $2.22 million for the customers, FINRA alleged, as well as more than $2.24 million in commission payments for Mr. Ginn and his member firm. The order alleges further that he “improperly traded on discretion” in some of the customers’ accounts, and made transactions without obtaining authorization. He allegedly “persisted in placing frequent trades in each of the customers’ accounts” even as they sustained losses.

As both the order and a report in AdvisorHub note[4], FINRA suspended Mr. Ginn for a period of 18 months. He also agreed to pay a fine of $50,000 and restitution totaling $115,000. He did not admit to or deny the allegations against him. The AdvisorHub report also observes that FINRA’s order “did not explain the gap between what [Mr.] Ginn had been paid from the trades and the fine and restitution ordered in the settlement.” 

Firm Settled Past Disputes for 7 Figures

Between 2022 and 2023, four investors or parties of investors lodged disputes involving Mr. Ginn that his firm settled. These disputes include allegations of unsuitable trading, fraud, deceit, churning, excessive trading, and excessive commission charges. His member firm settled them for more than $2 million. “Settlement should not be deemed an admission of guilt or liability,” reads a statement included with each dispute’s disclosure.

Pending Dispute Seeks 6-Figure Damages

On October 19, 2023, another investor or party of investors lodged a dispute involving Mr. Ginn. This dispute alleges that he recommended an unsuitable structured note product. The dispute, which is still pending, seeks $250,000 in damages.

FINRA: Broker Last Registered in Santa Maria and Denver

Stewart Ginn launched his career as a broker in 2002, when he joined Ladenburg Capital Management in Bethpage, New York. Over the following years, he worked with firms including Newbridge Securities and Navian Capital Securities. He joined Independent Financial Group in 2015, registering with its offices in Santa Maria, California and Denver, Colorado. He has been suspended from acting as a broker. 

At MDF Law, We Stand Up for Investors

Do you have concerns about investments recommended by Stewart Ginn? You have rights as an investor, including the right to lodge a FINRA arbitration claim to seek damages. Call MDF Law at 800-767-8040 for a free consultation about your options. We accept cases on a contingency basis—clients only pay if they win—and offer free consultations nationwide. Your time to file a claim may be limited, so we encourage you to avoid delay. Call MDF Law to chat with a lawyer today.