According to FINRA, John Emil Fendrich Jr. of Red Bank, New Jersey was fined $5,000, suspended from association with any FINRA member in all capacities for three months, and ordered to pay $14,214 plus interest in partial restitution to a customer.

Fendrich willfully violated Regulation Best Interest by recommending trades to a retail customer that were excessive and not in the customer's best interest. The customer's account had an investment objective of speculation.

Fendrich and another registered representative shared recommendations and commissions for this customer's account. Their trading generated $28,428 in commissions while causing $95,393 in realized losses—meaning the customer lost money while paying substantial commissions.

The restitution amount of $14,214 represents half of the commissions charged, reflecting Fendrich's shared responsibility with the other representative.

Excessive trading occurs when a broker trades in a customer's account more than is appropriate given the customer's investment objectives and profile. Even when an account has a speculation objective, trading that generates significant commissions while producing substantial losses raises serious concerns about whether the trading served the customer's interest or primarily the broker's commission income.

Regulation Best Interest requires brokers to act in the best interest of retail customers when making recommendations. Trading that enriches the broker through commissions while impoverishing the customer through losses is inconsistent with this obligation.

The suspension is in effect from June 2 through September 1, 2025.

For investors, this case illustrates the importance of monitoring your account activity and understanding the relationship between trading frequency, commissions paid, and investment returns. If your account shows high activity, significant commission costs, and poor performance, these may be warning signs.