Spartan Capital Securities provides equity and debt offerings (both corporate and municipal). In addition, private placements can also be provided.
This New York-based firm is registered with FINRA, an oversight group responsible for monitoring financial services industry activity.
FINRA recently investigated this brokerage firm due to allegations about its brokers suggesting risky investment strategies and engaging in too much trading activity. If you lost money with this broker, legal options may exist to recover it.
FINRA Complaints
Spartan Capital Securities Complaints has been subject to multiple FINRA (Financial Industry Regulatory Authority) and state securities law firm complaints since 2009. Investors should be wary of red flags when choosing and evaluating brokers and brokerage firms.
According to a recently filed FINRA complaint, Marc Augustus Reda is accused of engaging in excessive trading practices across 21 customer accounts he was assigned, costing each over $265K in commissions and fees as a result. Additionally, Reda recommended unsuitable investments as well as made unwarranted trades within these accounts.
The complaint alleges that between 2017 and 2019, Reda’s active trading strategy with its substantial total costs caused harm to his customers. He executed at least 10 trades related to an unsuitable strategy in 66 customer accounts; their net losses closely aligned with Reda and Spartan Capital commissions and fees paid.
FINRA Department of Enforcement alleges that Spartan Capital Securities failed to report hundreds of reportable events involving its representatives, such as customer disputes, complaints, bankruptcies, unsatisfied liens, and judgments. Furthermore, this firm delayed filing amendments for Forms U4 and U5 of branch managers, executive officers, and registered representatives by an average of more than 216 days per instance – something no other firm does according to allegations by this case.
Mark Reda Complaints
Spartan Capital Securities broker Mark Reda has come under scrutiny due to various customer complaints about his sales practices and inappropriate recommendations. These accusations could constitute violations of FINRA regulations which mandate brokers understanding their customers’ financial situations and risk tolerance when offering advice.
Reda is accused of advising his clients to engage in risky trading strategies and securities transactions that were not suitable to their investment profiles, goals and financial situation. These actions may have violated FINRA Rules 2020 and 2111 as well as Exchange Act Section 10(b), as well as violating firm policies of PHX Financial, FINRA and Reda.
FINRA also brought up concerns with Reda’s excessive trading in customer accounts, commonly known as churning. Churning refers to broker activity where multiple trades are executed against an account to generate commissions and fees; such a practice is generally unsuitable for most investors as it can result in significant financial loss.
At last, one customer filed a claim against Reda and Spartan Capital Securities for misrepresenting certain facts related to their investments, seeking $72,026 in compensatory damages; this dispute remains open and unsettled. Reda was employed by PHX Financial until May 2016, before joining Spartan Capital Securities’ New York branch office where she currently works.
Legal Options
Spartan Capital Securities, like all broker dealers, is subject to regulation by the Financial Industry Regulatory Authority (FINRA). Furthermore, as an SEC registered investment firm offering various financial services for clients.
FINRA alleges that from 2017 to 2019 Spartan Capital Securities broker Mark Reda recommended an unsuitable trading strategy in customer accounts which involved making active trades ahead of corporate announcements, according to their allegations. Reda is said to have made over $934K in commissions and fees as a result of these unsuitable strategies, according to FINRA.
One reason people lose money with brokers is due to unsuitable advice they received from brokers or too much trading with Spartan Capital Securities, for instance. A lawyer could examine your case and advise what legal remedies may be available.
Spartan Capital Securities has also received numerous customer complaints for offering risky investments and excessive trading activity, so it is wise to conduct your own due diligence prior to investing. Should any losses arise from this investment firm or brokerage house, seeking legal advice with expertise in working with FINRA and state regulators may help provide relief from losses incurred through investing with them.
