According to FINRA, Christopher Alexander Polinaire was fined $7,500, suspended for eight months in all capacities, and ordered to pay $128,000 in restitution to customers for engaging in excessive and unsuitable trading.

Polinaire recommended trades in customer accounts, some executed using margin, which customers routinely accepted. His trading resulted in annual turnover rates ranging from 10.01 to 45.23, meaning some accounts were essentially turned over more than 45 times in a year. The annualized cost-to-equity ratios ranged from 35.65 percent to 152.56 percent, meaning some customers' accounts would have needed to gain over 152 percent annually just to break even after accounting for commissions and fees.

In total, the affected customers paid a combined $128,000 in commissions and fees based on Polinaire's recommendations. This excessive trading, also known as "churning," generated substantial commissions for Polinaire while devastating customer accounts with costs.

Excessive trading is unsuitable regardless of a customer's investment profile because the high costs make it virtually impossible for customers to achieve positive returns. Turnover rates above 6 and cost-to-equity ratios above 20 percent are generally considered excessive. Polinaire's activity far exceeded these thresholds.

This case illustrates the importance of investors monitoring their account statements for excessive activity. Warning signs include frequent trades, high commission charges, and account values that decline despite market gains. Investors should question representatives who recommend frequent trading and consider whether the strategy serves their interests or primarily generates commissions.

The eight-month suspension and restitution order hold Polinaire accountable for putting his financial interests ahead of his customers' wellbeing.