Allen, a properly registered agent with a broker-dealer properly registered in the state, is a proponent of market timing and frequent trading. It is not uncommon for him to buy and sell the same security several times in a given week, basing his trades on a thorough understanding of technical analysis and market timing. Recently, three of his clients have complained to the state securities Administrator that the commissions charged their account appear excessive, along with the excessive nature of the trading. Many of the trades were executed without their knowledge, and one customer discovered that she was in a margin account, although she claims she was never informed of this. The debit balance of the margin account is $5,000, and she is struggling to pay the interest charges. Which of the following represent(s) accurate statements about this situation?
1. since Allen is a professional trader, the trading cannot be deemed excessive, especially if the clients' accounts show capital appreciation
2. customers frequently claim that commissions are excessive; therefore, their statements to the Administrator will likely carry little weight
3. Allen may be subject to an Administrative order to suspend or revoke his license, after being given the opportunity to request a hearing
C) 1, 2
(this multiple choice question has been scrambled)