Investigating Stock Broker Stewart Ginn

 

Our clients have filed FINRA arbitration claims arising out Stewart Ginn and IFG's alleged misconduct.

The Law Offices of Patrick R. Mahoney, P.C. (“PRM”) represents clients with active FINRA arbitration claims that involve Stewart Ginn (FINRA CRD No. 4503197). PRM has launched an investigation on behalf of those clients who have directed claims against Independent Financial Group (“IFG”). IFG, based in San Diego is a FINRA licensed broker-dealer allegedly responsible for supervising Mr. Ginn’s conduct.

PRM’s investigation of Stewart Ginn takes place concurrently with two other, related investigations:

  1. PRM’s investigation concerning Independent Financial Group; and
  2. PRM’s investigation concerning Crosby Investment Group

As part of his association with IFG, Mr. Ginn has offices at the following addresses:

  1. 1340 Hygeia Avenue, Encinitas, CA 92024;
  2. 2646 Santa Maria Way, Suite 104, Santa Maria, CA 93455;
  3. 600 S. Cherry Street #226, Denver, CO, 80246

If you have any information concerning PRM’s investigation into Stewart Ginn, or any related investigation, please Contact Us.

Summary of PRM’s Client’s Claims

PRM’s clients have alleged paying exorbitant commissions and suffering financial losses through a series of questionable transactions that Mr. Ginn initiated and IFG approved.

Clients have alleged paying exorbitant commissions and suffering losses that IFG and Stewart Ginn caused

PRM’s clients have made formal allegations of the following types of financial misconduct (among others):

  1. Excessive Trading and Churning
  2. Failure to Supervise
  3. Breach of Fiduciary Duty
  4. Elder Financial Abuse.
  5. Unsuitability

FINRA has Recommended Disciplinary Action Against Mr. Ginn

Stewart Ginn is a FINRA licensed stock broker. FINRA (which stands for the “Financial Industry Regulatory Authority“) regulates brokers like Stewart Ginn and broker-dealer’s like IFG. FINRA has the authority to discipline its licensees and members if it believes they have engaged in financial misconduct.

FINRA has accused Stewart Ginn of Securities fraud and excessive trading

On March 10, 2023, FINRA recommended disciplinary action against Mr. Ginn alleging the following:

  • Securities Fraud– Willful violation of the Securities Exchange Act of 1934 Section 10(b) and Rule 10b5;
  • Churning– Violation of FINRA Rules 2020 and 2010
  • Unsuitable and Excessive trading
  • Failure to Act in Investor Best Interest- Willful violation of the Best Interest Obligation under Rule 15l-1 of the Securities Exchange Act of 1934 (Reg BI)
  • Improper use of Discretion– Violation of FINRA Rules 3260 and 2010

FINRA’s enforcement’s decision to recommend discipline arising out of Mr. Ginn’s conduct, represents a significant step.

Stewart Ginn’s Background as a Stock Broker

BrokerCheck is a publicly available, online database that Main Street investors can use to glean information about their financial advisor.

Mr. Ginn’s BrokerCheck contains the following background information:

  • He holds his Series 63 and Series 7 FINRA licenses.
  • He passed his Securities Industry Essentials Examinations.
  • He has held FINRA broker licenses since 2002.
  • He holds valid securities licenses in 39 states.
  • He presently has affiliations with IFG and Navian Capital Securities.

His BrokerCheck report provides the following employment history dating back to 2005:

Mr. Ginn’s Employment with Newbridge Securities Corporation (2009 to 2015)

According to Newbridge’s BrokerCheck report, the SEC, FINRA, and multiple state regulators have subjected Newbridge to discipline more than 30 times.

Mr. Ginn’s Employment Chicago Investment Group, LLC (2005 to 2009)

According to Chicago Investment Group, LLC’s BrokerCheck report, FINRA expelled Chicago Investment Group, LLC from the securities industry.

Significance of FINRA enforcement’s decision to recommend discipline of Stewart Ginn

What is FINRA enforcement?

FINRA enforcement investigates securities violations of its licensees like Mr. Ginn. FINRA enforcement has extensive tools to investigate securities violations. If FINRA enforcement launches an investigation, the licensed financial advisor and/or firm subjected to the investigation must comply with it. If they don’t, FINRA enforcement can subject the firm and/or financial advisor to discipline. Discipline can include monetary sanctions, suspensions, or bans from the financial services industry.

What does “recommending discipline” mean?

If FINRA enforcement’s investigation identifies potential securities violations, it can recommend discipline. A this recommendation does not mean that the individual committed securities violations. It simply means that FINRA enforcement believes, based on its investigation, that securities violations have taken place. This recommendation is analogous to being charged with a crime in a criminal context. A charge is not the same as a conviction. But it’s the first step towards a potential conviction.

What happens after FINRA enforcement recommends discipline?

Once FINRA enforcement concludes that securities violations have occurred, the financial advisor (here, Mr. Ginn), has two options:

Option 1-Mr. Ginn can settle with FINRA Enforcement.

A settlement would likely entail Mr. Ginn’s agreement to specific discipline. Examples of discipline can include, fines, suspensions, or an industry bar. Settling with FINRA enforcement is analogous to pleading guilty in a criminal context. If he decides to settle with FINRA, he would have to sign a Letter of Acceptance, Waiver and Consent (AWC). An AWC memorializes what the financial advisor did, and the FINRA discipline he has agreed to.

Option 2- Mr. Ginn can litigate the disciplinary recommendation with FINRA.

If he does not agree to an AWC, Mr. Ginn can litigate the matter with FINRA Enforcement. FINRA would make a formal complaint to the Office of Hearing Officers (OHO). FINRA will schedule a formal hearing before the OHO where he can contest FINRA’s conclusions about its investigation. This stage of the process is analogous to a trial.

Stewart Ginn’s Affiliation with Crosby Investment Group

PRM’s clients believe that at some point, Mr. Ginn took over or purchased a book of brokerage business known as the Crosby Investment Group (“Crosby”). Crosby is also subject to investigation. PRM’s clients believe that Crosby was originally owned a by a father-son team.

Crosby’s online profile touts financial planning, retirement planning, and investment planning services.

Mr. Ginn’s Investor Complaint History

Mr. Ginn’s BrokerCheck report discloses an investor complaint from June 25, 2007, for allegations relating to unsuitability and mismanagement. As of the date of this post, BrokerCheck reveals at two pending customer dispute concerning excessive commissions and unsuitability.

If you have any information concerning PRM’s investigation into Stewart Ginn, or any related investigation, please Contact Us.