Former Broker David Page Under Scrutiny for Excessive and Unsuitable Trading

Investors trust their brokers to provide sound, personalized advice, not to put their portfolios at risk for the sake of generating commissions. But the financial and emotional fallout can be devastating when that trust is broken.

Former broker David Page (CRD#: 2874899) is now at the center of mounting concerns from investors and regulators alike. His history includes allegations of high-volume trading strategies that led to substantial client losses, multiple arbitration awards and pending claims that suggest this may not be an isolated issue.

The Sonn Law Group is currently reviewing claims involving Page and his former firms. In this article, we’ll break down the regulatory actions, customer complaints and warning signs investors should know.

Regulators Target Page Over Alleged Fraud and Noncompliance

SEC Complaint Filed in 2023

In September 2023, the U.S. Securities and Exchange Commission (SEC) filed a civil complaint against David Page and four other registered representatives at Salomon Whitney LLC (operating as SW Financial). The SEC alleges that, between 2018 and 2022, the group recommended and executed an aggressive short-term, high-volume trading strategy in at least 16 retail accounts, without a reasonable basis and with little regard for the resulting transaction costs.

• The SEC claims these trades generated over $1 million in investor losses and more than $660,000 in commissions and fees for the brokers involved.
• The complaint accuses the defendants of violating antifraud provisions of federal securities laws and breaching Regulation Best Interest (Reg BI) obligations.

FINRA Suspension in 2024

In a separate regulatory action, FINRA issued an indefinite suspension against Page in September 2024. The action was based on his failure to comply with an arbitration award or provide information about the status of compliance when requested by FINRA.

Page was suspended from acting in any capacity with a FINRA member firm, and the case remains unresolved as of the date of the order.

Customer Complaints and Arbitration Awards

David Page has been named in five customer disputes between 2010 and 2024, including multiple claims of negligence, unsuitable investment recommendations, unauthorized trading and breach of fiduciary duty. These complaints stem from his time at several firms, including SW Financial, John Thomas Financial and Salomon Whitney LLC.

The most recent complaint, filed in April 2023, remains pending and seeks $968,793.99 in damages. The claimant alleges a range of misconduct, including unauthorized trading, failure to supervise and misrepresentation. This case originated while Page was registered with Salomon Whitney LLC (d/b/a SW Financial).

In May 2023, a FINRA arbitration panel awarded a customer $135,000 in compensatory damages after finding Page liable for negligence and breach of fiduciary duty. As of September 2024, the award remains unpaid, which contributed to FINRA’s decision to suspend Page.

Additional complaints in earlier years include:

• A $500,000 arbitration award from a 2013 case involving allegations of an unsuitable investment strategy and breach of contract while at John Thomas Financial.
• A 2011 claim involving unauthorized and unsuitable trading which was ultimately settled for $5,000.
• One 2010 complaint that was closed without action.

The nature and frequency of these complaints, combined with multiple arbitration awards, suggest a pattern of potential misconduct and raise serious concerns about Page’s handling of customer accounts.

Employment History and Licensing

David Page’s securities industry career spanned more than two decades, beginning in 1997. He most recently worked as a registered representative for Spartan Capital Securities in New York from May to July 2023. Prior to that, he spent nearly five years at SW Financial in Melville, NY, the firm where the SEC alleges the bulk of the misconduct occurred. His past affiliations include John Thomas Financial (2008 – 2013), Brookville Capital Partners and several other firms across New York and Massachusetts.

He has passed seven industry exams, including the Series 7 (General Securities Representative), Series 24 (General Securities Principal) and Series 79 (Investment Banking Representative). Page is no longer registered with FINRA as of 2024.

Risks of High-Volume and Unsuitable Trading

One of the core allegations in the SEC’s case against David Page involves a high-volume trading strategy that regulators say had no reasonable basis and led to substantial investor losses. This type of misconduct, often referred to as churning, can drain account value through excessive commissions while exposing investors to unnecessary risk.

Churning occurs when a broker places frequent trades in a client’s account primarily to generate fees, not because it aligns with the client’s financial goals. Over time, this can cause financial harm, especially when the trades aren’t tailored to the investor’s risk tolerance or investment profile.

Brokers are required to follow strict standards that prohibit these tactics, including: 

• FINRA Rule 2111 requires all recommendations to be suitable based on the customer’s financial profile, risk tolerance and investment objectives.
• SEC Regulation Best Interest (Reg BI) further mandates that brokers act in the client’s best interest and never place their own commissions ahead of investor outcomes.

When brokers like Page allegedly disregard these obligations, investors can suffer significant losses, and firms that fail to supervise this behavior may also be held accountable.

What Investors Should Watch For

If you’ve worked with a broker and suspect your account may have been subject to excessive trading or unsuitable recommendations, there are some key red flags to look for. If you’ve experienced any of the following issues with your brokerage account, it may be time to investigate further:

• Unexpected losses despite an overall strong market performance
• High fees or commissions without meaningful returns
• Frequent trades that weren’t clearly explained or don’t align with your investment goals
• Unauthorized transactions or trades you didn’t approve
• Difficulty getting clear answers from your broker about recent account activity
• A pattern of risky or aggressive trades that don’t match your risk tolerance
• Being discouraged from asking questions or pressured into approving trades quickly
• Discovering discrepancies or errors in your account statements

If any of these red flags sound familiar, consider speaking with a securities attorney to explore whether you may have a valid claim.

Sonn Law Group Can Help You Investigate a Claim

If you invested through David Page and experienced losses due to excessive or unsuitable trading, you may be eligible for financial recovery. 

Our team has decades of experience holding brokers and firms accountable for misconduct through FINRA arbitration and securities litigation. We’re led by attorney Jeffrey Sonn, a national authority in investor protection with a long track record of successful outcomes.

We offer free, no-obligation case evaluations and work entirely on a contingency basis, so you don’t owe anything unless we secure a recovery. Contact us today to request your free case review and learn more about your legal options.