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JP Turner Brokers Over-Trade Their Customer

Three now former brokers at Atlanta-based securities brokerage firm JP Turner over-traded (“churned”) their customer accounts, charging over $845,000 in commissions and fees for themselves and the firm.  The customers lost more than $2,700,000 according to the SEC.
The over trading took place in the accounts of seven JP Turner customers from January 2008 through December 2009.   The brokers involved are Ralph Calabro, Jason Konner and Dimitrios Koutsoubos.  The SEC says they ignored the customers’ conservative investment objectives and low risk tolerances.  There was so much over trading, that the accounts would have had to have had an annual return of 73.3% just to break even!
JP Turner’s head supervisor, Michael Bresner, allegedly disregarded “red flags” of over-trading/churning and failed to supervise two of the brokers, according to the SEC.   Mr. Bresner was also fined $25,000 in 2004 for failing to properly supervise brokers at another firm.
JP Turner, and its former president, and one of the firm’s founders, William Mello, also were charged but decided to consent to the SEC’s findings against them and settle the charges. The firm paid more than  $415,000 in penalties and disgorgement of unlawful profits.   Mr. Mello agreed to a $45,000 penalty, and a suspension from associating with a firm in a supervisory capacity for a time.
“Broker-dealers’ supervisory systems must provide customers with reasonable protection from churning and similar abuses,” William Hicks, associate director of the SEC’s Atlanta office, was quoted as saying, adding: “JP Turner’s supervisory systems failed to do that.”
J.P. Turner & Co. is a mid-size broker-dealer that was recently acquired into a larger company.  J.P. Turner has more than  500 representatives in more than  200 offices throughout the country.  J.P. Turner is headquartered in Atlanta, Georgia.  Many of its offices are 1 or 2 person offices.   Since 1999, the firm has compiled a record of 18  regulatory items, many featuring an element of failure to supervise, and a number of arbitration actions.
Independent broker-dealers are challenged because of their supervision practices and procedures. The business model of these franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs that arise at a full-service branch office with on-site manager, compliance officer and operation personnel.
Have you suffered losses in your J.P. Turner brokerage account? If so, call StockBrokerLawyer  for a free consultation.  We are actively investigating and accepting clients with valid claims against J.P. Turner stockbrokers who engaged in stock brokerage misconduct and caused investors losses.
Most customers don’t even know that a stockbroker may have acted beneath their standards, and a firm may have to compensate the customers.  StockBrokerLawyer.com is committed to educating customers, and the public, that there are times that a stockbrokerage firm is responsible to recover stock and other investment losses.  The lawyers at StockBrokerLawyer.com have serious experience with these investment issues, and will bring that experience and process to your benefit.  We are the pro’s at helping people recover stock losses.

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