Churning
Churning is excessive trading in a customer's account, driven by the broker's commissions rather than the customer's objectives. It defrauds one customer rather than distorting a price, which is why it sits outside manipulation proper.
Where does churning come up?
This term is used in the following manipulation techniques, each explained in full on its own page.
Enforcement actions involving these techniques
| Action | Agency | Filed | Technique | Penalty | Status |
|---|---|---|---|---|---|
| SEC v. Baris Cabalar (churning, 2024) | SEC | 2024-10-16 | Churning | — | filed |
| SEC v. Laidlaw and Company (UK) Ltd. (churning, 2023) | SEC | 2023-11-20 | Churning | $223k | settled |
| SEC v. Michael Blumer, John Kuprianchik, David Page, Steven Thompson, Joseph Todaro (churning, 2023) | SEC | 2023-09-28 | Churning | — | filed |
| SEC v. Rocco Roveccio (churning, 2019) | SEC | 2019-05-06 | Churning | $160k | judgment |
| SEC v. William C. Gennity (churning, 2019) | SEC | 2019-03-04 | Churning | $160k | judgment |