2. What is excessive trading, and how do I know if it happened in my account?

Excessive trading, also called churning, happens when a broker trades your account so often that costs eat into your returns. FINRA says a turnover rate of six or more, or a cost-to-equity ratio above 20%, generally points to excessive trading. The cost-to-equity ratio is how much your account must grow each year just to cover trading costs.

3. Can Joseph Gunnar be held responsible for its broker’s trading?

Yes. Brokerage firms must supervise their brokers and act on red flags like high turnover. A firm that fails to do so may be liable for failing to supervise, even if it didn’t direct the trades.

Written by The White Law Group• October 22, 2026• 1:23 am• Broker-Dealer Overview

Joseph Gunnar & Company Lawsuits, Complaints & FINRA Fines

Joseph Gunnar & company, featured by top securities fraud attorneys, the White Law Group.

Last Updated: October 2026

Joseph Gunnar Lawsuit & Complaints: $100K FINRA Fine Over Excessive Trading

FINRA has reportedly censured and fined Joseph Gunnar & Co. LLC $100,000 for allegedly failing to supervise excessive trading in customer accounts. This is the second time FINRA has cited the Uniondale, New York firm over weak supervision of trading in customer accounts. The White Law Group is investigating complaints and potential lawsuit claims involving Joseph Gunnar & Company on behalf of investors. Here is what is on the firm’s record, and how investors may recover losses through FINRA arbitration.

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Joseph Gunnar Fined $100,000 Over Excessive Trading Supervision

According to a FINRA Letter of Acceptance, Waiver, and Consent (AWC) accepted in October 2026, Joseph Gunnar allegedly failed to maintain a supervisory system that could catch excessive trading from at least February 2023 through August 2024. FINRA found this violated Regulation Best Interest and FINRA Rules 3110 and 2010. The firm ran a monthly report showing each account’s turnover rate and cost-to-equity ratio. But FINRA said the firm gave its supervisors no benchmarks for which numbers should raise concern. Joseph Gunnar agreed to the findings without admitting or denying them.

Three Customer Accounts Flagged by FINRA

FINRA found the firm missed red flags of excessive trading in three customer accounts:

Customer A: An annual cost-to-equity ratio of 45.07% and a turnover rate of 16.15. The customer paid $16,734 in trading costs and had $16,971 in realized losses.
Customer B: An annual cost-to-equity ratio of 37.34% and a turnover rate of 12.00. The customer paid $11,562 in trading costs and had $11,769 in realized losses.
Customer C: An annual cost-to-equity ratio of 20.22% and a turnover rate of 6.82. The customer paid $12,086 in trading costs and had $1,057 in realized losses.

All three accounts appeared on the firm’s monthly reports. The firm sent the customers activity letters but took no other action until it restricted commissions in August 2024. According to the AWC, the firm updated its procedures in April 2024 and paid restitution to the three customers in 2026.

Joseph Gunnar Complaints and Regulatory History

October 21, 2026: Censured and fined $100,000 for allegedly failing to supervise excessive trading under Regulation Best Interest, as described above.
July 8, 2024: FINRA censured and fined the firm $65,000 and ordered $69,898.17 in restitution plus interest. FINRA found the firm charged a $100 minimum commission on more than 1,600 equity trades between 2018 and 2022, which it found unfair to customers. The firm also allegedly failed to file offering documents for 14 private placements between 2020 and 2023.
December 4, 2020: Censured and fined $55,000 for allegedly failing to maintain an adequate anti-money laundering program and due diligence procedures for foreign financial institutions.
December 5, 2017: Censured and fined $60,000 for allegedly failing to supervise a top-producing broker who made unsuitable recommendations to an elderly widow. Her losses exceeded $150,000. FINRA found the firm lacked a supervisory system designed to prevent unsuitable trading. The firm agreed to improve its supervision as part of that settlement.
December 2022: A FINRA arbitration panel awarded more than $1.5 million to a former Joseph Gunnar broker who alleged unpaid commissions, unjust enrichment, and fraud.

Broker Misconduct at Joseph Gunnar

Joseph Gunnar has employed brokers who faced disciplinary action. In August 2019, a New York broker was fined $5,000 and suspended for allegedly making unauthorized trades, including trades in deceased customers’ accounts. In 2016, a former Greenwich broker was fined $20,000 and suspended for two months for allegedly recommending unsuitable short-term steepener trades that cost clients about $24,000. If your Joseph Gunnar broker was later barred or fired, read what to do if your financial advisor was barred or fired.

How to Recover Losses from Joseph Gunnar & Company

If you lost money in a Joseph Gunnar account, you may be able to recover it through FINRA arbitration. Investors with heavily traded accounts should review their statements for high turnover and large commission totals. An experienced securities attorney can help you judge whether you have a claim.

Contact The White Law Group

The White Law Group is a national securities fraud attorneys firm with offices in Chicago and Seattle. If you have concerns about your account with Joseph Gunnar & Company, call us at (888) 637-5510 for a free consultation, or contact us online.

Frequently Asked Questions

Most investors file their claims through FINRA arbitration rather than court. Most brokerage account agreements typically include a pre-dispute arbitration clause, which many retail investors don’t know they signed. Arbitration can still result in a monetary award.