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.

Egan, Matvos, and Seru's findings validate that instead of purging problematic brokers from the industry, the regulatory and labor market dynamics gradually channel these brokers towards firms that hire individuals with a disproportionately high volume of customer complaints. These firms, known for their lax hiring standards and relaxed compliance standards, specialize in exploiting inexperienced investors.

According to Dimmock et al. [2016], in a related investigation, financial fraud exhibits a contagious nature. Their findings indicate that a broker's likelihood of perpetrating financial fraud is strongly influenced by the propensity of their colleagues to commit fraud, independent of factors such as firm culture, branch atmosphere, market conditions, and state regulatory policies.

Tina Marie Dauster-Carrolls 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. 19.17% 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 Tina Marie Dauster-Carroll 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") provides finance, economics, and investment management consulting services. Our clientele includes law firms, banks, brokerage firms, and individuals embroiled in complex litigation, for whom we offer expert witness services. Our team consists of highly qualified professionals holding PhD and MA-level degrees, with extensive experience across academia, industry, and government. We have provided expert testimony in state and federal courts, and in arbitration forums.

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