Gregory Thomas Dean, Registered Rep Formerly with Worden Capital Management LLC Has Disciplinary Proceedings Brought Against Him by FINRA for Excessive Trading/Churning in Customer Accounts

Gregory Thomas DeanPublicly available records recently provided by the Financial Industry Regulatory Authority (FINRA) indicate that former New York-based Worden Capital Management LLC broker/advisor Gregory Thomas Dean (CRD # 4922996) was sanctioned by FINRA’s Department of Enforcement for securities fraud in customer accounts. An Order from the proceeding permanently barring Mr. Dean from the securities industry was issued on August 15, 2019. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints of securities fraud regarding Mr. Dean and/or Worden Capital Management LLC.

Mr. Dean became registered in the securities industry in 2005 and was most recently registered with Worden Capital Management LLC (CRD # 148366) from November 2014 until June 2019. He is no longer registered or associated with a FINRA member firm. His prior registrations included J.D. Nicholas & Associates, Inc. (CRD # 44791) from January 2007 to November 2014 and American Capital Partners, LLC. (CRD # 119249) from May 2005 to February 2007.

FINRA’s Findings and Conclusions of Securities Fraud

According to the August 15, 2019 Order, the following findings of securities fraud by Gregory Dean were made by FINRA’s Department of Enforcement:

  • Between December 2014 and December 2017, Mr. Dean churned and excessively traded the accounts of seven customers. His trading heavily utilized margin, caused significant account losses and high commissions and fees for the customers. Mr. Dean’s trading was conducted with reckless disregard for the customer’s interests;
  • Mr. Dean’s trading resulted in more than $1,834,832.00 in cumulative losses for the customers while generating more than $715,930.00 in commissions, fees and margin interest that were charged to the customers; and
  • Mr. Dean through his actions willfully violated Section 10(b) of the Securities and Exchange Act of 1934 and FINRA Rules 2111, 2020 and 2010.

FINRA Sanctioned Gregory Thomas Dean

The August 15, 2019 Order also shows that Mr. Dean consented to the following sanctions regarding securities fraud in customer accounts:

  • Being permanently barred from associating with any FINRA member firm in any capacity.

Gregory Thomas Dean has a History of Customer Complaints of Securities Fraud

In addition to the above, according to FINRA BrokerCheck, Mr. Dean has been the subject of at least one additional regulatory action instituted by the Securities & Exchange Commission, a number of customer initiated arbitrations and/or civil law suit(s), and customer complaints regarding securities fraud.

On July 1, 2019 a customer initiated arbitration was filed naming Mr. Dean as one of a number of Respondents alleging damages attributable to Mr. Dean in the amount of $25,919.00 for negligence, unsuitability, breach of fiduciary duty, breach of contract and negligent misrepresentation and omissions while he was employed/associated with Worden Capital Management LLC. The arbitration is currently pending.

On September 28, 2016 a customer initiated arbitration was filed against Mr. Dean alleging damages in the amount of $420,847.00 for, unsuitability, unauthorized trading, supervision, concentration and violation of FINRA Rules 2010 and 2111 while he was employed/associated with Worden Capital Management LLC. The arbitration is currently pending.

On February 27, 2013 the Arkansas Securities Commissioner approved a consent Order finding that on September 22, 2011 Mr. Dean placed an unsolicited call to the home of an Arkansas resident who was a senior examiner with the Arkansas Securities Department. The resident’s phone number was registered on the United States Federal Trade Commission’s National Do Not Call Registry. The Commissioner directed Mr. Dean to cease and desist and fined him $10,000.00 for his unsolicited call.

On June 26, 2019 the SEC issued an Order finding that on June 10, 2019 a final judgement was entered permanently enjoining Mr. Dean from any future violations of Sections 17(a) of the Securities and Exchange Act of 1933, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Gregory T. Dean and Donald J. Fowler, Civil Action Number 17-CV-139 (GHW), in the United States District Court for the Southern District of New York.

On February 19, 2016 a customer initiated an arbitration against Mr. Dean alleging damages in the amount of $70,766.80 for excessive commissions, churning and unsuitable transactions while he was employed/associated with Worden Capital Management LLC. The arbitration was settled on August 19, 2019 in the amount of $19,999.00.

On August 7, 2017 a customer initiated an arbitration against Mr. Dean alleging damages in the amount of $150,000.00 for churning, unsuitability, breach of fiduciary duty, common law fraud, breach of contract, negligent supervision while he was employed/associated with Worden Capital Management LLC from May 2015 through June 2017. The arbitration was settled on June 1, 2018 in the amount of $60,000.00.

On July 6, 2017 a customer initiated an arbitration against Mr. Dean alleging damages in the amount of $586,840.000 for unsuitability and overconcentration, excessive trading and margin abuse, failure to supervise, breach of fiduciary duty, negligence, fraudulent misrepresentation and breach of contract from September 2010 through November 2016 while he was employed/associated with J.D. Nicholas & Associates and Worden Capital Management LLC. The arbitration was settled on June 6, 2018 in the amount of $55,000.00.

On December 9, 2016 a customer initiated an arbitration against Mr. Dean alleging damages in the amount of $2,115,095.00 for excessive trading, churning, unsuitability, unauthorized transactions, failure to supervise, respondeat superior and ownership liability while he was employed/associated with J.D. Nicholas & Associates, Inc. The arbitration was settled on July 26, 2018 in the amount of $42,500.00.

On June 20, 2016 a customer initiated an arbitration against Mr. Dean alleging damages in the amount of $138,032.66 for unsuitable investments and negligent account management, churning, misrepresentation, omissions and violations of the Indiana Securities Act and regulations thereunder, breach of contract and breach of fiduciary duty and constructive fraud, violations of the FINRA Conduct rules and NYSE rules, respondeat superior, negligence and negligent supervision, from October 5, 2015 through February 9, 2016 while he was employed/associated with Worden Capital Management LLC. The arbitration was settled on June 23, 2017 in the amount of $40,000.00 with an individual contribution of $20,000.00.

On May 27, 2016 a customer initiated arbitration was filed against Mr. Dean alleging damages in the amount of $133,434.00 for churning and excessive trading, unsuitability, violation of FINRA rules and state blue sky laws and section 10(b) and rule 10 b-5 of the Securities & Exchange Act of 1934, violation of FINRA Rules 2010, IM-2310-2 and 2020 and failure to supervise, from May 7, 2015 through January 7, 2016 while he was employed/associated with Worden Capital Management LLC. The arbitration was settled on June 6, 2016 in the amount of $40,000.00 with an individual contribution of $40,000.00.

On April 2, 2015 a customer made a written complaint against Mr. Dean alleging damages in the amount of $419,371.46 for churning, unsuitability, negligent supervision, markup or commission abuse and breach of fiduciary duty, from October 5, 2015 through February 9, 2016 while he was employed/associated with J.D. Nicholas & Associates, Inc. The complaint evolved into an arbitration which was settled on February 26, 2017 in the amount of $25,000.00 with an individual contribution amount of $5,000.00.

On April 2, 2015 a customer made a written complaint against Mr. Dean alleging damages in the amount of $125,963.33 for churning, unsuitability, negligent supervision, markup or commission abuse overconcentration and breach of fiduciary duty, from October 5, 2015 through February 9, 2016 while he was employed/associated with J.D. Nicholas & Associates, Inc. The complaint evolved into an arbitration which was settled on February 8, 2017 in the amount of $25,000.00 with an individual contribution amount of $10,000.00.

On January 20, 2015 a customer initiated an arbitration against Mr. Dean alleging damages in the amount of $500,000.00 for unsuitable trading, excessive turnover/churning and failure to supervise, from April 2012 through March 2013 while he was employed/associated with J.D. Nicholas & Associates, Inc. The arbitration was settled on September 27, 2015 in the amount of $200,000.00 with an individual contribution amount of $20,000.00.

On December 4, 2014 a customer made a written complaint against Mr. Dean alleging damages in the amount of $43,667.05 for recommendations that performed poorly, while he was employed/associated with J.D. Nicholas & Associates, Inc. The complaint was settled on December 18, 2014 in the amount of $42,500.00 with an individual contribution amount of $42,500.00.

On October 24, 2014 a customer made a written complaint against Mr. Dean alleging damages in the amount of $418,163.00 for churning, negligence, unsuitability, overconcentration and failure to supervise, while he was employed/associated with J.D. Nicholas & Associates, Inc. The complaint evolved into an arbitration which was settled on May 2, 2016 in the amount of $350,000.00.

On November 12, 2013 a customer made a written complaint against Mr. Dean alleging damages in the amount of $15,602.35 for failure to follow order instructions while he was employed/associated with J.D. Nicholas & Associates, Inc. The complaint was settled on May 19, 2014 in the amount of $8,250.00.

Find Out if you have Recourse

If you or someone you know has complaints regarding Gregory Thomas Dean and/or Worden Capital Management LLC, 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.