Investor Alert > Daniel Maughan Investigation Into Indefinite Bar in All Capacities
Posted Nov 11, 2019
by Alan Rosca

Daniel Maughan Investigation Into Indefinite Bar in All Capacities

Securities LawyersDaniel Gordon Maughan, a former broker and registered investment adviser, was barred by the Financial Industry Regulatory Authority (FINRA) on the allegations of churning and excessive trading of a customer’s trust account, which was in violation of Section 10(b) of the Exchange Act and FINRA Rule 2020, according to an investigation by investor rights attorney, Alan Rosca.

Investor rights attorney Alan Rosca, of the Rosca Scarlato LLC law firm is investigating the violation of FINRA rules by the Daniel G. Maughan in the excessive trading of a customer’s trust account. Prior to this allegations, Daniel Maughan was a registered representative with Financial West Group from 2010 till 2017, a member firm of FINRA. However, he was not in the employment of any firm as at the time the allegations were charged against him in 2019.

Daniel Maughan Was Barred by FINRA for Churning and Excessive Trading

As reported on his FINRA Brokercheck page, Daniel Maughan Broker was barred on the allegations of churning and excessively trading a customer’s trust account which he had control over while at his previous member firm. It was reported that he had control over the account and he was in charge of making the various investment decisions including the choice of securities to trade, the volume of securities and various times when each transaction would occur. Daniel Maughan’s alleged excessive trading resulted in the accrual of approximately $841,000 in commissions and costs leading to $812,000 in realized and unrealized losses on the account. In addition to this, Maughan was also alleged to have recommended unsuitable trades on the account and according to FINRA, he lacked a reasonable basis to believe such recommendations were suitable for the customers.

These allegations were settled with an Order of Offer of Settlement. Daniel Maughan, allegedly, without admitting or denying the findings against him, consent to the sanctions provided in the order of Offer of Settlement. He was barred indefinitely in all capacities.

Daniel Maughan has settled four customer disputes

Prior to the above mentioned allegations, Daniel Maughan allegedly settled a customer dispute in 2015, on the allegations of a breach of fiduciary duty, negligence, breach of contract and misrepresentation. This dispute was settled for $550,000.

Maughan also allegedly settled another customer dispute in 2009 to the tune of $10,000. It was also based on the claim of breach of fiduciary duties, negligence, misrepresentation, fraud, conversion and failure to follow client instructions among others.

In 2002, a customer dispute was filed against Daniel Maughan on the allegations of churning, unauthorized trading and suitability among others in connection with a stock purchase in February 2000. This dispute was settled for $46,000. Furthermore, he settled a dispute in 2001 for $51,321. It was based on the allegations from a client’s daughter claiming that some purchases on her father’s account were unauthorized and there was no communication to that effect.

Finally, it is important to note that, as of the date of this dqfansurvey article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.

Securities Lawyer Investigating

The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Daniel Maughan’s alleged churning and excessive trade of a customer’s trust account. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

Investors who believe they lost money as a result of Daniel Maughan’s alleged churning and excessive trade of a customer’s trust account,  may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.

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DISCLAIMER

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.

If you believe you lost money as a result of investment-related fraud or misconduct, please contact our law firm for a free, no-obligation evaluation of your recovery options.

Contact us at 888‑998‑0530 or through the contact form on this page.
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