Securities Arbitration Lawyers BlogDid You Lose Money Investing With Spartan Capital Securities?
New York-based brokerage firm Spartan Capital Securities was the subject of a disciplinary proceeding filed by the Financial Industry Regulatory Authority (FINRA) alleging Spartan Capital “defrauded customers by engaging in widespread churning.”
The disciplinary proceeding focuses on Spartan Capital’s “churning” and “excessive trading” of customer accounts. Generally, “churning” refers to the frequent buying and selling of securities in a customer account for the primary purpose of generating commissions.
FINRA’s Complaint Against Spartan Capital
According to FINRA, Spartan Capital “facilitated this churning and excessive trading, failing to take any meaningful steps to supervise the 39 registered representatives who carried out this misconduct on the firm’s behalf.” Amongst other things, FINRA’s Complaint alleges:
- “Spartan allowed the Spartan Representatives to churn and excessively trade customer accounts despite glaring red flags that those representatives were committing misconduct and harming customers.”
- “Spartan routinely hired registered representatives with a history of customer complaints and regulatory inquiries into potential excessive and unsuitable trading of customer accounts.”
- “Spartan’s Business Depended on Excessively Trading Customer Accounts”
The Complaint alleges violations of federal securities laws and FINRA Rules.
You May Be Entitled To Compensation If “Churning” Occurred In Your Spartan Capital Investment Accounts
FINRA and SEC rules and regulations require brokers to act in their clients’ best interest and have a reasonable basis that a recommended investment will be beneficial for the customer based on their investment objectives, liquidity needs, tax status, and risk tolerance, amongst other factors.
Silver Law Group is a leading investor rights firm representing main street investors in securities and investment fraud disputes nationwide. Our attorneys routinely handle class actions and other cases involving Ponzi schemes, investment frauds, and financial advisor misconduct.
If you have any questions about your Spartan Capital accounts, call to speak with an experienced securities attorney. Most cases are handled on a contingency fee basis, meaning that you won’t owe us until we recover your money for you. All case evaluations are free. Contact us today at (800) 975-4345 to discuss how we can help.