In their study "How Widespread and Predictable is Stock Broker Misconduct?" researchers at SLCG discovered that past customer complaints against individual brokers can indicate the likelihood of future complaints. McCann, Qin, and Yan also found that incorporating co-workers' complaint histories notably enhances the predictive accuracy for brokers without prior complaints. Furthermore, they determined that customer complaints that were denied - beyond just settlements and awards - are valuable in forecasting potential investor harm.

In their study, Egan, Matvos, and Seru confirm that the regulatory and labor market mechanisms do not effectively filter out poor brokers from the industry. Instead, they steer these brokers over time towards brokerage firms that employ individuals with a disproportionately high incidence of customer complaints. These firms are characterized by lax hiring practices and relaxed compliance ethics, targeting less sophisticated investors.

In their related study, Dimmock et al. [2016] establish that financial fraud spreads contagiously. They find that a broker's inclination to commit financial fraud is significantly shaped by the tendency of their coworkers to engage in fraudulent activities, even when accounting for firm culture, branch dynamics, market conditions, and state regulatory frameworks.

Joshua Dean Rogerss current employer, is one of the 30 highest risk brokerage firms measured by the percent of brokers at the firm who have customer complaints disclosed on their BrokerCheck reports. 16.81% of 's brokers have customer complaints compared to only 2.71% of all brokers who have complaints.

If you have questions about this post, about and/or Joshua Dean Rogers or about the management of your accounts, please contact SLCG for an initial consultation or email us at BrokerInquiry@SLCG.com.

SLCG Economic Consulting, LLC

SLCG Economic Consulting, LLC ("SLCG") specializes in finance, economics, and investment management consulting services. We offer expert witness services tailored to meet the needs of law firms, banks, brokerage firms, and individuals navigating complex litigation. Our team predominantly comprises PhD and MA-level professionals with varied backgrounds spanning academia, industry, and government. Numerous team members have offered expert testimony in state and federal courts, as well as in diverse arbitration forums.

SLCG is a wholly owned subsidiary of McCann Yan Holdings, Inc., a Virginia incorporated company based in Northern Virginia.