According to a Financial Industry Regulatory Authority (FINRA) complaint, Edward Beyn was accused of excessively trading and churning six customer accounts while he was registered as a representative with Craig Scott Capital (CSC). This is a tactic used by brokers to garner large commissions for themselves, even if it is not in the best interest of the client. Beyn allegedly used a short-term trading strategy in the customers’ accounts as a means to turn over the accounts quickly and generate outside commissions for himself. He relied heavily on buying and selling equities of companies releasing their earnings reports as a catalyst for excessively trading accounts. Each of these carried a markup. A broker must take into account a customer’s age, net worth, trading strategy and investment objectives when recommending and selling securities. If he does not, his firm can be held responsible for investment losses. This allegedly took place between March 2012 and August 2013. He executed 115 transactions in this time period, and generated approximately $188,704 in commissions and fees for himself. Many of his victims were over the age of 60.
Beyn was registered with Pointe Capital in Bethpage, New York from May 2008 until October 2008, Clark Dodge & Co. in Garden City, New York from October 2008 until March 2009, JHS Capital Advisors in Bethpage from May 2009 until may 2010, Brookstone Securities in Uniondale, New York from May 2010 until February 2012 and Craig Scott Capital in Uniondale, New York from February 2012 until September 2015. He is currently registered with Rothschild Lieberman in Syosset, New York and has been since September 2015. He has seven customer disputes against him, five of which are currently pending.
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