Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Edward Scott Short (CRD # 2462752) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into excessive and unsuitable trading (churning).
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Short.
Registration Background for Edward Scott Short
Mr. Short first became registered in the securities industry in 1994. He was most recently registered with Melville, NY based Laidlaw & Company (UK) Ltd. (CRD # 119037) from October 2012 to October 2022. His prior registrations include EKN Financial Services, Inc. (CRD # 113525) from December 2001 to October 2012 and Ehrenkrantz King Nussbaum (CRD # 31140) from November 2001 to December 2001.
According to the FINRA Letter of Acceptance, Waiver and Consent (AWC) dated January 31, 2023 (No. 2020065683302), Mr. Short consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between July 2018 and December 2020, [Mr. Short] recommended a series of trading in an account held by a customer that was excessive, unsuitable, and not in the customer’s best interest”;
- “Between July 2018 and December 2020, [Mr. Short] recommended 204 transactions in the customer’s account”;
- “During this period, the trading in the customer’s account generated $116,859 in commissions and resulted in approximately $185,000 in trading losses, an annualized cost-to-equity ratio of 76.53%, and an annualized turnover rate of 47.49”;
- “This level of trading was excessive, unsuitable, and not in the customer’s best interest”;
- By virtue of his actions, Mr. Short violated Exchange Act Rule 15I-1 (for the period June 20, 2020 through December 31, 2020), regarding acting in the best interest of the retail customer (Reg BI), FINRA Rule 2111 (for the period July 1, 2018 through June 29, 2020) regarding suitability and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Suspends Edward Scott Short from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s January 31, 2023 AWC also indicates that Mr. Short consented to the following sanction(s):
- A seven-month suspension from association with any FINRA member in all capacities;
- A fine in the amount of $5,000.00; and
- Restitution in the amount of $116,859.00 plus interest.
Edward Scott Short Has A Prior History of Securities Industry Customer Complaints
In addition to Edward Scott Short being suspended by FINRA from the securities industry regarding excessive and unsuitable trading, FINRA BrokerCheck for Mr. Short reveals that he has a history of customer complaints and/or customer-initiated arbitrations including but not necessarily limited to the following:
- On May 5, 2005 a customer-initiated arbitration was commenced against Mr. Short regarding alleged actions that occurred while he was associated with Ehrenkrantz King Nussbaum and Weatherly Securities (CRD # 11081). The customer’s allegations included unsuitable trading, unreasonable commissions, misrepresentation. The customer further alleged damages in the amount of $1,413,000.00. On January 19, 2017, the arbitration was settled in the amount of $450,000.00 with Mr. Short required to pay $75,000.00 of the settlement amount.
- On May 13, 1998 a customer-initiated arbitration was commenced against Mr. Short regarding alleged actions that occurred while he was associated with Tasin & Company, Inc. (CRD # 30709). The customer’s allegations included failure to follow instructions and excessive commissions. The customer further alleged damages in the amount of $50,000.00. On March 20, 2000, the arbitration was settled in the amount of $30,000.00.
Have You Lost Money with Edward Scott Short?
If you or someone you know has or had a brokerage account with Mr. Edward Scott Short and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.