Three former brokers of an Atlanta brokerage and investment banking firm have been ordered to pay more than $800,000 after the Securities and Exchange Commission accused them of excessive trading in clients’ accounts to generate commissions and fees.
The “churning,” as the illegal practice is called, allegedly occurred between January 2008 and December 2009.
J.P. Turner spokeswoman Heidi Wheatley said Thursday that the brokers - Ralph Calabro, Jason Konner, and Dimitrios Koutsoubos - were terminated “quite some time ago. The firm has significantly enhanced its policies and procedures since that time and we’re moving forward.” All three have denied any wrongdoing.
Calabro lives in Matawan, N.J. and Konner and Koutsoubos live in Brooklyn, N.Y. The SEC said the brokers disregarded seven clients’ conservative investment objectives and their tolerance for only low to moderate risks, and instead repeatedly bought and sold securities that led to about $2.7 million in losses to the customers’ accounts.
The agency said the trio generated commissions, fees and margin interest totaling about $845,000.
The SEC also accused a former J.P Turner supervisor, Michael Bresner, of failing to comply with SEC regulations in supervising the three brokers. Bresner, who also has denied any wrongdoing, was fined $5,000. Wheatley said Bresner is expected to retire.
Wheatley said the company has about 400 independent brokers across the country, and its Atlanta office, with about 100 employees, provides back-office support.
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