According to FINRA, Tory A. Duggins (CRD #4556340), based in the Bronx, New York, was sanctioned on January 19, 2024, through a Letter of Acceptance, Waiver and Consent (AWC). Duggins was suspended from association with any FINRA member firm in all capacities for 18 months. In light of Duggins' financial status, no monetary sanction was imposed.
FINRA found that Duggins willfully violated the Best Interest Obligation under Regulation BI (Rule 15l-1 of the Securities Exchange Act) by recommending a series of excessive trades to customers, some of whom were seniors. The findings stated that Duggins' customers relied on his advice and routinely followed his recommendations, giving him de facto control over their accounts.
Duggins' trading resulted in high cost-to-equity ratios and turnover rates that were well above the traditional guideposts of 20 percent and six, respectively, as well as significant losses. Specifically, Duggins' trading in the customers' accounts generated total trading costs of $444,176, including $343,416 in commissions, and caused $235,494 in total realized losses. The trading was found to be excessive, unsuitable, and not in the best interest of the customers given their investment profiles.
FINRA also found that Duggins willfully failed to report a written customer complaint alleging a sales practice violation on his Form U4. One of the customers sent Duggins an email complaining that he excessively traded the customer's account and seeking $17,500 in compensatory damages. Duggins received and read the email but did not forward the customer complaint to his member firm's compliance department as required by the firm's policies.
Excessive trading, sometimes called "churning," is one of the most harmful forms of broker misconduct. It occurs when a broker executes trades in a customer's account primarily to generate commissions rather than to benefit the customer. Regulation BI, which took effect in June 2020, strengthened the obligations brokers owe to their customers by requiring that recommendations be in the customer's best interest.
The failure to disclose a customer complaint is separately troubling. Form U4 disclosures are a critical tool for investor protection because they provide transparency about a broker's history. When brokers conceal complaints, they deprive future customers and regulators of important information.
Investors should monitor their accounts for signs of excessive trading, including unexpectedly high turnover, frequent buying and selling of the same securities, and trading costs that significantly erode returns. Reviewing account statements regularly is one of the best defenses against this type of misconduct.
The suspension was in effect from February 20, 2024, through August 19, 2025 (FINRA Case #2018056490309).
