From August 2016 to May 2017, the first restaurant’s account had a monthly balance of about $192,200. During that period, Athas allegedly made 111 short-term trades totaling about $5.5 million in principal value, holding the stocks for an average of 22 days, the complaint said. These trades generated transaction costs of about $304,100, and represented a turnover rate of about 29 and a cost-to-equity ratio of about 158%, the filing stated, adding that the first restaurant’s account sustained at least $45,000 in realized losses.
From June 2017 to September 2018, the second restaurant’s account had a monthly balance of about $32,000. During that period, Athas allegedly made 128 short-term traded totally about $3.3 million in principal valued, holding the stocks for an average of about 11 days, the complaint said. These trades generated transaction costs of about $107,000, and represented a turnover rate of about 75 and a cost-to-equity ratio of about 246%, the complaint said, adding that the second restaurant’s account suffered at least $144,000 in realized losses.
According to BrokerCheck, Athas has a long history of customer accusations of churning and excessive fees going back to 2001 and through employment at 13 different firms.
The first instance took place in 2001, when Athas worked at Seaboard Securities, a New Jersey firm that was expelled from the securities industry in February 2011. The customer’s accusations were denied, BrokerCheck said.
In January 2004, another customer allegation of excessive commissions was settled for $8,600 when Athas worked at Emmett A. Larking Company, previously registered in California.
In August, 2005, a client contested margin interest on an account and settled for $906 when Athas worked at J.P. Turner & Co., a previously registered Georgia firm. Also while at J.P. Turner, Athas was accused of unauthorized trading and the firm settled for $40,000.
In June 2009, while Athas worked at Liberty Partners Financial Services in South Carolina, he allegedly churned a client account, and the firm settled for $30,000.
In June 2011, the same allegation occurred when Athas worked at Avalon Partners, a previously registered firm in New York, and that customer complaint was settled for $10,000.
In January 2017, a customer accused Athas of churning when he worked at Worden Capital, and the firm settled for $95,000.