Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

Did Douglas Solinsky Excessively Trade in Your Account?

Douglas Blake Solinsky (CRD # 4715268) is a suspended New York-based broker employed by Kingswood Capital Partners, LLC. Solinsky has 19 years of experience in the securities industry and has worked for seven firms, including a 10-year stint at Newbridge Securities Corporation which was ended via termination in February 2019. On June 29, 2023, Solinsky accepted a $10,000 fine and four-month suspension from FINRA for engaging in excessive and unsuitable trading in customer accounts. In addition, Solinsky’s BrokerCheck Report shows he has a further seven disclosure events including six tax liens and a customer dispute settled for $90,000.

Complaint Against Douglas Solinsky

In the Letter of Acceptance, Waiver, and Consent ("AWC"), signed by Solinsky, FINRA found that from January to November of 2017, he excessively and unsuitably traded in the accounts of two of his customers in violation of FINRA rule, resulting in the accounts having to grow by 26% and 30%, just to break even to cover the costs of the trading.

What is Excessive and Unsuitable Trading (“Churning”)?

Excessive trading, also known as "investment churning," refers to the practice of a broker or investor excessively buying and selling securities within a short period to generate more commissions or fees. It involves frequent and unnecessary trading, often without regard for the underlying investment's fundamentals. This behavior can be detrimental to investors due to increased transaction costs and potential tax consequences. It may also lead to reduced returns as the constant trading incurs expenses that erode gains.Investment churning is prohibited by the Financial Industry Regulatory Authority (“FINRA”). Specifically, investment churning is prohibited by FINRA Rule 2111 which requires brokers to have a reasonable basis for believing that recommended transactions are suitable for their clients based on factors such as the client's financial situation, investment objectives, risk tolerance, and other relevant information. Churning conflicts with this rule because it involves excessive trading that may not align with the client's best interests but instead aims to generate more commissions for the broker.

Sustained Investment Losses? Contact Our Office Today.

If you had investment losses related to excessive and unsuitable trading, we might be able to help. Contact our office today to schedule a free, no-obligation consultation. Call (866) 362-2644 to speak directly with an attorney. We proudly serve clients nationwide.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram