According to reports, three former JP Turner & Company brokers have been accused by the Securities and Exchange Commission of defrauding clients out of $2.7 million by “churning” their accounts.
The reports indicate that brokers Ralph Calabro of Matawan, N.J., and Jason Konner and Dimitrios Koutsoubos, both of Brooklyn, N.Y., allegedly disregarded their clients’ conservative investment goals and engaged in excessive trading to generate commissions and other revenue—a practice referred to in the industry as “churning.”
JP Turner has consented to a settlement in which they neither denied nor admitted to the SEC’s findings. In the settlement, JP Turner agreed to pay $200,000 in disgorgement, a $200,000 penalty and $16,051 in prejudgment interest. These sanctions were as a result of the SEC’s claim that JP Turner failed to adequately supervise the three brokers accused of churning.
The brokers are accused of churning the accounts of seven clients between December 2008 and December 2009. According to the SEC, the churning allegedly undertaken by these three JP Turner advisers generated commissions, fees and margin interest totaling about $845,000 and resulted in total losses of about $2.7 million for the clients.
According to their FINRA Broker Reports, Ralph Calabro, Jason Konner, and Dimitrios Kousoubos are no longer affiliated with JP Turner, having moved to National Securities Corporation, DPEC Capital, Inc., and Caldwell International Securities, respectively.
The foregoing information, which is publicly available, is being provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida. The firm has represented numerous clients in churning claims similar to those discussed above.
If you believe that you are the victim of excessive trading or churning, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.
For more information on The White Law Group, visit http://whitesecuritieslaw.com.
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