According to FINRA, Stephen James Sullivan (CRD #3123249), formerly based in Massapequa Park, New York, was barred from association with any FINRA member firm in any capacity effective September 17, 2024. The bar became final through an Office of Hearing Officers (OHO) decision based on findings that Sullivan failed to provide on-the-record testimony, information, and documents requested by FINRA pursuant to FINRA Rule 8210 in connection with an investigation into potential churning and excessive trading in his customers' accounts. The findings stated that Sullivan initially appeared with counsel and testified for almost five hours. During testimony, FINRA asked Sullivan whether he changed the investment strategy he recommended to his customers following the implementation of Regulation Best Interest (Reg BI). Sullivan refused to answer the question and stated that he would not provide additional testimony. At the time Sullivan terminated his testimony, FINRA still had a substantial number of questions remaining, including questions about his trading in other customers' accounts. Sullivan subsequently refused to provide any additional testimony and also failed to provide documents and information requested under Rule 8210. Churning and excessive trading occur when a broker engages in an unreasonable volume of transactions in a customer's account primarily to generate commissions rather than to benefit the investor. This practice can devastate an investor's portfolio through accumulated transaction costs, fees, and tax consequences, while enriching the broker through increased compensation. Reg BI, which took effect in June 2020, requires broker-dealers and their associated persons to act in the best interest of their retail customers when making recommendations, adding an additional layer of protection against practices like churning. For investors, this case highlights the importance of monitoring trading activity in your accounts. Warning signs of potential churning include frequent buy-and-sell transactions, unexpectedly high fees or commissions, and portfolio performance that significantly lags the relevant benchmarks despite active trading. If you notice excessive trading in your account, request a detailed accounting of all transactions and associated costs. FINRA's BrokerCheck tool can help you research a broker's disciplinary history before entrusting them with your investments. Sullivan's permanent bar ensures he is no longer permitted to work in any capacity with a FINRA-registered firm, protecting future investors.