According to FINRA, Sean P. McCabe was fined $5,000, suspended from association with any FINRA member firm in all capacities for three months, and ordered to pay $19,275 plus interest in restitution to a customer for excessively and unsuitably trading the customer's account.

McCabe recommended high frequency in-and-out trading to the customer, including recommending that the customer sell positions he had recently opened even when the price of the security had not materially changed. The customer, a dairy farmer in his late fifties with a speculative risk tolerance, relied on McCabe's advice and routinely followed his recommendations.

As a result, McCabe exercised de facto control over the customer's account. McCabe's trading generated $19,275 in commissions while causing $57,445 in realized losses for the customer.

Excessive trading, also known as churning, occurs when a broker trades a customer's account primarily to generate commissions rather than to benefit the customer. This is a serious violation of the broker's duty to act in the customer's best interest.

Signs of excessive trading include frequent buying and selling, short holding periods, and commission costs that are disproportionate to account gains. Investors should monitor their accounts for these warning signs and question any trading activity they don't understand.

The suspension is in effect from January 6, 2025, through April 5, 2025. The restitution order ensures the customer is compensated for the excessive commissions charged.