SEC Charge Brokers Churning

On Sep. 10, SEC charged brokers for recommending excess trades.

  • Charges for Florida resident Emil Botvinnik, and NY resident Jovannie Aquino.
  • Were representative with Meyers Associates, LP, (later Windsor Street Capital).
  • For recommending excessive level of trading that are costly to retail customers.
  • Follows similar SEC charges of excessive trading, in Jan., Sep., and Dec. 2017.
  • Follows Jan. 2017 investor alert on excessive trading and churning by brokers.

Alleged Violations

  • Recommended frequent, short-term trades with $4.6mn in broker commissions.
  • However, the trades were almost guaranteed to lose money for their customers.
  • Customers – some near retirement age – lost $3.6 million as a result of trades.
  • Brokers need to ensure trading level they recommend is suitable for customers.
  • SEC said investors should be on the lookout for frequent trades within accounts.
  • Conducted unauthorized trades and concealed material information from clients
    on transaction cost for recommendations, likely to outstrip any gains in account.


  • SEC sought disgorgement of ill-gotten gains and interest, and pay civil penalty.