Gregory Dean and Donald Fowler, previously with Worden Capital Management, Found Liable for Fraud for Excessive Trading Accounts
Have you lost money with financial advisor Gregory Dean and Donald Fowler? We are continuing to look into allegations made about Gregory Thomas Dean and Donald J. Fowler from Rockville Centre, New York. The Securities and Exchange Commission (SEC) brought a complaint against Dean and Fowler in 2017, alleging that they excessively traded or churned customer accounts. In June 2019, the SEC previously obtained a judgment against Dean. On February 28, 2020, a final judgment was entered against Fowler, finding him liable in all 13 customer accounts that were examined.
In August 2019, FINRA (the Financial Industry Regulatory Authority) barred Dean from the securities industry. FINRA was investigating Gregory Dean, a broker who previously worked with Worden Capital Management, regarding allegations that Dean engaged in excessive trading or churning between December 2014 and December 2017. FINRA alleged that several of Dean’s customers had cost-to-equity ratios between 38% and 130%. To put this in perspective, if an account had a cost equity ratio of 38%, that means the trading in the account would have to make a 38% profit just to break even from the costs of trading.
Gregory Dean and Donald Fowler were financial advisors and registered representatives of Worden Capital Management from November 2014 to June 2019. They worked at a branch office in Rockville Centre, New York. Dean has also been the subject of fourteen customer complaints, and Fowler has also been the subject of fourteen customer complaints.
Brokerage firms like Worden Capital Management have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Seattle, Washington; Phoenix, Arizona; and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings in all 50 states, including New York. Our attorneys have recovered millions of dollars for investors against many brokerage firms in the past.