The allegations read: Willfully violated section 10(b) of the securities exchange act of 1934, sec rule 10b-5, thereunder; violated finra rules 2010, 2360, nasd rule 2310 - carl birkelbach engaged in excessive and unsuitable trading in five customer accounts pursuant to his approved discretionary authority in the accounts. The trading had such extraordinarily high turnover and cost-to-equity ratios that it constituted fraud in violation of section 10(b) of the securities exchange act of 1934 and rule 10b-5 thereunder. The accounts were excessive and unsuitable for the customers based on their investment objectives, financial situation and needs, and lack of knowledge and experience necessary to understand the risks associated with the recommended transactions. The customers' accounts would have had to earn anywhere from 22.97% to 43.67% just to break even.
