Spartan Capital Securities, LLC, a FINRA-registered brokerage firm based in New York, New York, has several brokers who are the subject of multiple investor complaints alleging a variety of misconduct including, but not limited to, misrepresentation, unsuitability, churning, unauthorized trading, and more. While based in New York, Spartan Capital is registered to do business throughout the United States, operating primarily in the Northeastern U.S., predominantly in New Jersey.
Spartan Capital Has Faced Recent Regulatory Challenges
In 2019, Spartan Capital consented to a $15,000 fine and was sanctioned by the New Jersey Bureau of Securities after failing to report regulatory actions against a Spartan Capital agent, Jospeh Morris Thurnherr, who was already under a heightened supervision agreement that required Spartan Capital to notify the New Jersey Bureau of Securities of such actions. Thurnherr has since been barred from acting as a broker and has three pending and one settled customer dispute on his record.
Spartan Capital further agreed to “cease and desist from further violations of the Securities Law and will comply with the Securities Law,” according to the New Jersey Bureau of Securities’ Consent Order.
Many Spartan Brokers Are Subject Of Investor Complaints
Spartan Capital has hundreds of active brokers, and a simple survey of FINRA’s BrokerCheck database indicates that many of these brokers are the subject of pending and settled customer complaints alleging misconduct in the recommendation of various investments.
John M. Cullen
For example, Spartan Capital broker John M. Cullen (CRD# 5062835) is the subject of one pending and two settled customer disputes. The pending dispute, lodged in January 2020, alleges misrepresentation and unsuitable recommendations leading to alleged damages of $336,948.
Cullen previously settled a 2015 customer complaint alleging “high commission[s], [and] concentrated investment strategies.” Cullen’s FINRA CRD Report indicates that he individually contributed $39,999 to settle the dispute.
Moreover, Cullen has a series of tax liens and civil judgments reported on his CRD Report, spanning form 2015-2019. Such liens and judgments pose the potential to incentivize brokers to generate higher commissions and fees, without regard for the best interests of their customers. Brokerage firms are obligated to supervise their brokers, especially those with multiple financial disclosures on their record.
Similarly, Matthew Angelo Siliato (CRD# 5062153) has one pending and four settled customer disputes. The pending dispute alleges churning (excessive trading designed only to generate high commissions and fees), improper margin trading, unsuitable recommendations, and unauthorized trading and alleges damages of $383,000.
In January 2020, Siliato was indefinitely suspended from operating as a broker for “failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.”
Did You Lose Money Investing With A Spartan Capital Broker?
Brokerage firms have a responsibility to supervise their representatives and to implement policies and procedures designed to prevent misrepresentations in providing investment recommendations, unsuitable recommendations, as well as churning—excessive trading designed to generate high commissions and fees. Moreover, when brokers have several disclosures on their CRD Reports, brokerage firms have heightened obligations to supervise their conduct.
Did you invest with Spartan Capital and suffer losses? Silver Law Group represents investors nationwide in claims of unsuitable investments, breach of fiduciary duty, breach of contract, violation of FINRA rules, churning, and more. If you or someone you know lost money investing at Spartan Capital, please contact Silver Law Group toll free at (800) 975-4345 or email email@example.com for a confidential consultation.