Daniel Gordon Maughan, Registered Rep Formerly with Financial West Group Has Disciplinary Proceedings Brought Against Him by FINRA for Excessive Trading and Unsuitable Recommendations in Customer Accounts
Publicly available records recently provided by the Financial Industry Regulatory Authority (FINRA) indicate that disciplinary proceedings were brought against former California-based Financial West Group broker/advisor Daniel Gordon Maughan (CRD # 2561363) on August 14, 2019 for securities fraud. An Order from the proceeding permanently barring Mr. Maughan from the securities industry was issued on October 15, 2019. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints of securities fraud regarding Mr. Maughan and or Financial West Group.
Mr. Maughan became registered in the securities industry in 1997 and was most recently registered with Financial West Group (CRD # 16668) from May 2010 until August 2017. He is no longer registered or associated with a FINRA member firm. His prior registrations include Wedbush Securities, Inc. (CRD # 877) from February 2002 to May 2010, MetLife Securities, Inc. (CRD # 14251) from August 2001 to January 2002.
FINRA’s Findings and Conclusions of Securities Fraud by Daniel Maughan
According to the October 15, 2019 Order, the following findings of securities fraud by Daniel Maughan were made by FINRA’s Department of Enforcement:
- From October 2010 through January 2015, Mr. Maughan executed approximately 1,648 trades with a principal value of $70 million, in a customer’s trust account;
- Mr. Maughan’s trading was excessive and quantitatively unsuitable and generated commissions and costs totaling approximately $841,000.00 while causing the account to incur realized and unrealized losses of approximately $812,000.00;
- Mr. Maughan also recommended qualitatively unsuitable trades in the trust account involving options and exchange-traded products, including non-traditional exchange-traded funds and an exchange-traded note;
- Mr. Maughan willfully violated Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder and also violated FINRA Rules 2020 and 2010;
- By excessively trading the trust account Mr. Maughan violated NASD Rule 2310 (for transactions before July 9, 2012), FINRA Rule 2111 (for transactions on or after July 9, 2012) and FINRA Rule 2010; and
- By recommending qualitatively unsuitable trades in the trust account Mr. Maughan violated NASD Rule 2310 (for transactions before July 9, 2012), FINRA Rule 2111 (for transactions on or after July 9, 2012), FINRA Rule 2360(b)(19)(A) and (B) and FINRA Rule 2010.
FINRA Sanctioned Maughan
The October 15, 2019 Order also shows that Mr. Maughan consented to the following sanctions:
- Being permanently barred from associating with any FINRA member firm in any capacity.
Maughan has a History of Customer Complaints Regarding Securities Fraud
In addition to the above, according to FINRA BrokerCheck, Mr. Maughan has been the subject of a number of customer initiated arbitrations and/or civil law suit(s), and customer complaints regarding securities fraud.
On September 9, 2015 a customer initiated arbitration was filed alleging damages in the amount of $1,500,000.00 for breach of fiduciary duty, negligence, breach of contract and misrepresentation. The arbitration was settled on March 29, 2017 in the amount of $550,000.00.
On July 13, 2009 a customer initiated arbitration was filed against Mr. Maughan alleging damages in the amount of $50,000.00 for breach of fiduciary duties, negligent misrepresentation, negligence, fraud, conversion, unsuitable advice, breach of contract, lack of supervision, failure to follow written and verbal instructions and unauthorized trading while he was employed/associated with Wedbush Morgan Securities. The arbitration was settled on April 15, 2010 in the amount of $10,000.00.
On December 18, 2002 a customer initiated a civil lawsuit in the Superior Court of California, Los Angeles County, Central District against Mr. Maughan alleging churning, unauthorized trading and unsuitability for unauthorized trading while he was employed/associated with Merrill Lynch Pierce Fenner & Smith Inc. The complaint was settled on October 13, 2003 in the amount of $46,000.00.
On March 21, 2001 the daughter of a customer initiated a complaint against Mr. Maughan alleging damages in the amount of $99,000.00 for unauthorized trading while he was employed/associated with Merrill Lynch Pierce Fenner & Smith Inc. The complaint became an arbitration with the filing of the same on June 29, 2001. The arbitration was settled on August 20, 2001 in the amount of $51,321.00.
On February 7, 2001, Mr. Maughan was discharged from Merrill Lynch Pierce Fenner & Smith Inc. The reason for termination indicated that he “entered orders in clients accounts without prior consent.”
Find out if you have Recourse
If you or someone you know has complaints regarding Daniel Gordon Maughan and/or Financial West Group, 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.