Daniel Maughan, Former Financial West Broker, Hit with Finra Complaint Alleging Churning

Complaint filed for engaging in churning and excessive trading of customer accounts

Sonn Law is investigating Former Financial West Broker Daniel Maughan. We represent investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 866–827–3202, or complete our contact form for a free consultation.

Daniel Maughan (CRD# 2561363) is a previously registered broker and investment advisor. From 2010 to 2017, Mr. Maughan was most recently a registered representative of Financial West Group.

On August 14, 2019, a complaint was filed with the FINRA Office of Hearing Officers alleging that Mr. Maughan engaged in churning and excessive trading of customer accounts between October 2010 and January 2015. More specifically, the complaint alleges that Mr. Maughan “executed approximately 1,648 trades, with a principal value of all purchases and sales in excess of $70 million.”

According to the complaint, the churning generated over $800,000 in commissions and costs for Mr. Maughan, while causing the account to incur realized and unrealized losses of approximately $812,000.

Mr. Maughan also allegedly made unsuitable recommendations to invest in non-traditional Exchange-Traded Funds (ETFs). ETFs are a special kind of securities that use borrowed funds and derivatives, like options or futures, to boost customer return. While leveraged ETFs may result in higher gains if the index they are matched to increases, the same can occur in the opposite direction if the index goes down. This detail may not be adequately explained or apparent to potential investors.

The FINRA Department of Enforcement is requesting sanctions based on Mr. Maughan’s numerous FINRA Rule violations, including the disgorgement of all ill-gotten gains plus interest.

Mr. Maughan’s BrokerCheck profile also contains five other disclosures: one employment separation notice and four customer disputes dating back to 2001. The largest customer dispute was also the most recent. In September 2015, the complaint was filed alleging breach of fiduciary duty, negligence, breach of contract, and misrepresentation. It was eventually settled for $550,000.

Prior to his employment with Financial West, Mr. Maughan was most recently registered with Wedbush Securities (2002–2010) and Metlife Securities (2001–2002).

Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional or corporate executive misappropriated funds, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.