Sean Waters, previously with Financial West Group, Barred from Securities Industry

   –  Westlake Village, CA

Have you lost money with financial advisor Sean Waters?  We are investigating allegations made about Sean J. Waters from Westlake Village, California.  FINRA (the Financial Industry Regulatory Authority) barred Waters from the securities industry.  FINRA was investigating Sean Waters, a broker who previously worked with Financial West Group, regarding allegations that Waters engaged in excessive trading or churning between January 2013 and March 2016.  FINRA alleged that one of Waters’ customers had a cost-to-equity ratio of 41%.  To put this in perspective, if an account had a cost equity ratio of 41%, that means the trading in the account would have to make a 41% profit just to break even from the costs of trading.

Moreover, the customer’s account had an annual turnover of 7.20.  Generally, authority has held that accounts that have a turnover of 6 or higher are considered to be a “conclusion” of churning.  Waters alleged made 40% of his commissions from trading this customer’s accounts.

This is the second broker from the Westlake Village office of Financial West Group that has been barred in the past couple of months.  In October 2018, FINRA barred John Simoncic, who also worked at the same office as Sean Waters, for allegations of churning and excessive trading.

Sean Waters was a financial advisor and registered representative of Financial West Group from December 2010 to April 2017.  Waters was also affiliated with Newbridge Securities from April 2017 to February 2018.  Waters was also previously fired by another brokerage firm in 2010.

Brokerage firms like Financial West Group have a responsibility to adequately supervise all representatives who are registered through their firm.  Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies.  When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.

Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Seattle, Washington; and Ann Arbor, Michigan.  We represent investors in FINRA arbitration proceedings in all 50 states, including California. Our attorneys have represented over one thousand investors against many brokerage firms in the past.

Click to view:  Waters, Sean AWC FINRA

Click to view:  Waters, Sean BrokerCheck 11.29.18

-Read Related Article on Investigation of John Simoncic 

If you lost money with Sean Waters, John Simoncic or Financial West Group, please CONTACT US at 720-599-3505 for a free evaluation of your case.

Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency.  Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency.  All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact.  This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice.  Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis.  In contingent representation, clients may still be liable for costs.