Daniel Maughan, Formerly of Financial West Group, Barred by FINRA Following Churning Allegations

Daniel Maughan is facing allegations of churning and excessive trading in a customer’s trust account.

The Sonn Law Group is investigating allegations that Daniel Maughan committed misconduct. Under FINRA Rules, brokerage firms are liable for their brokers’ misconduct or negligence and investors may be able to their investment through FINRA arbitration. Contact Sonn Law Group today or call us at 866–827–3202 for a free consultation.

Dan Maughan (CRD#:2561363) was named in a FINRA complaint alleging that he churned and excessively traded in a client’s account. The complaint alleges that Maughan exercised de facto control over the trust account and made all investment decisions in it.

Maughan allegedly executed trades in the trust account with a principal value of all purchases and sales in excess of $70 million and the annualized cost-to-equity ratio-the percentage the account had to appreciate to break even-was 21.06. Maughan’s churning and excessive trading was quantitatively unsuitable and generated commissions and costs totaling approximately $841,000 while causing the account to incur losses of approximately $812,000.

Maughan also recommended qualitatively unsuitable trades in the trust account involving options and non-traditional Exchange-Traded Funds (ETFs) and an Exchange Traded Note (ETN).

Prior to the regulatory disclosure against him, Maughan was subject to four customer disputes.

• September 2015 — Claimant alleged breach of fiduciary duty, negligence, breach of contract, and misrepresentation. (Settled for $550,000)
• July 2009 — Claimant alleged breach of fiduciary duties, negligent misrepresentation, negligence, fraud/conversion, unsuitable advice, breach of contract, lack of supervision, and failure to follow instructions. (Settled for $10,000)
• December 2002 — Claimant alleged churning, unauthorized trading, and unsuitability. (Settled for $46,000)
• March 2001 — Clamant alleges that three purchases were unauthorized. (Settled for $51,321)

Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional committed acts in violation of FINRA Rules, 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.