![Former Broker Matthew Maczko has been Barred Permanently by FINRA on silverlaw.com](/wp-content/uploads/2017/12/pic-7-1-300x200.jpg)
Maczko is reported to have earned nearly $600K in commissions by excessively trading an elderly client’s account
After almost 30 years in the securities industry, Matthew Maczko’s career is over. Earlier this month, the Financial Industry Regulatory Authority (FINRA) permanently barred him from acting as a broker due to allegations of churning.
FINRA found that between January of 2009 and April of 2016, Maczko made excessive trades in four accounts of a customer, who was in her late 80s when he began. These accounts – which had a value of about $3 million – were controlled by Maczko, and during that time span earned him almost $600K in commissions. The client ended up paying another $84K in fees, and lost nearly $400K through Maczko’s investments.It was also discovered that given his client’s age, income needs, and risk tolerance, Maczko’s level of trading was unsuitable, which would mean he acted contrary to the client’s goals or financial situation, and thus primarily to enrich himself. Excessive trading – also known as churning – is just that: a way for a broker or firm to benefit while an investor potentially loses a lot of money in commissions and fees.