INVESTIGATION

Worden Capital Management LLC has recently faced significant regulatory scrutiny following allegations of misconduct involving excessive trading practices by its former registered representative, William Nicholas Athas. The Financial Industry Regulatory Authority (FINRA) barred Athas from the industry after accusations that he exercised control over trading activities in customer accounts. This included deciding on the frequency, volume, timing of trades, as well as selecting specific securities for transactions. Athas was also reported to have set commission levels deliberately high, resulting in substantial trading costs that undermined the profitability of customer accounts.

FINRA’s investigation revealed that many of the trades executed under Athas’s direction were deemed unsuitable for the customers involved. These trades generated a total of $1.6 million in commissions, with $1.5 million directed to Athas and his firm, while customers suffered approximately $1.1 million in losses. Despite warnings and indications of excessive trading and high costs to clients, Athas allegedly persisted in these practices.

The allegations against Athas underscore broader concerns about Worden Capital Management LLC’s oversight and compliance practices. Instances of excessive trading can potentially violate FINRA rules on suitability and fair dealing, exposing investors to significant financial risks and losses.

If you believe you have been adversely affected by similar practices or have concerns about your investments with Worden Capital Management LLC, it is crucial to seek legal guidance. Contact Securities Arbitration Law Group PLLC at 202-444-4222 Or call CSAG at 212-566-6060 for a consultation and to explore your options for potential recovery and recourse.