James Flower, Formerly of SW Financial, Facing Allegations of Churning and Excessive Trading

Flower was named in a FINRA complaint alleging unauthorized trades and causing inaccuracies in his firm’s books and records. 

The Sonn Law Group is investigating allegations that James Flower engaged in churning and excessive trading in customers’ accounts. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

james-flower-facing-allegationsJames Flower (CRD#: 2817701) was named in a FINRA complaint alleging that he violated Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder, and violated FINRA Rule 2020 by churning and excessively trading in customers’ accounts. 

The complaint alleges that Flower controlled the trading in the customers’ accounts, decided what securities to buy and sell, the quantity of each transaction, and the timing of each transaction.

Flower also made unauthorized trades in a customer’s account. Flower’s trading in the accounts was grossly excessive and quantitatively unsuitable for the customers, as evidenced by the extremely high annualized turnover and cost-to-equity ratios, the frequency of the transactions, and the transaction costs incurred.

Flower’s trading in the customers’ accounts resulted in realized losses totaling over $220,000 while generating more than $210,000 in commissions and fees. Flower’s churning and excessive trading made it virtually impossible for any of the customers to make a profit. 

The complaint also alleges that Flower executed trades in the non-discretionary account of a customer without first obtaining the customer’s required authorization or consent. The complaint further alleges that Flower caused inaccuracies in his member firm’s books and records by mismarking solicited sales transactions in those accounts as unsolicited.

Flower has seven other disclosures on his BrokerCheck report, which are detailed below.

October 2019 Investigation

June 2017 Regulatory Judgement

January 2016 Financial Judgement

September 2015 Customer Dispute

September 2015 Customer Dispute

April 2010 Customer Dispute

April 2006 Customer Dispute

Contact Us Today

The Sonn Law Group is currently investigating allegations that James Flower made excessive trades in customers’ accounts. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.