Spartan Capital Securities is a brokerage firm registered with the Financial Industry Regulatory Authority (FINRA). The firm has been the subject of numerous customer complaints, alleging a variety of misconduct, including excessive trading, unsuitability, and fraud.
One of the most common complaints against Spartan Capital Securities is that its brokers engage in excessive trading. Excessive trading, also known as churning, is a practice in which a broker makes excessive trades in a customer’s account to generate commissions. Churning can be a serious problem for investors, as it can erode their investment returns and lead to significant losses.
Another common complaint against Spartan Capital Securities is that its brokers recommend unsuitable investments to customers. Unsuitability means that an investment is not appropriate for a customer’s circumstances, such as their risk tolerance and investment objectives. When a broker recommends an unsuitable investment, they may be violating their fiduciary duty to their customers.
In addition to excessive trading and unsuitability complaints, Spartan Capital Securities has also been accused of fraud. Fraud can include a variety of different acts, such as misrepresenting the risks of an investment or making false promises to investors.
The following are some examples of customer complaints against Spartan Capital Securities:
- A customer alleged that their broker at Spartan Capital Securities engaged in excessive trading in their account, resulting in significant losses. The customer also alleged that their broker recommended unsuitable investments to them.
- Another customer alleged that their broker at Spartan Capital Securities made false claims about the risks of an investment, which resulted in the customer losing money.
- A third customer alleged that their broker at Spartan Capital Securities unauthorized trading in their account.
In addition to customer complaints, Spartan Capital Securities has also been the subject of regulatory actions by FINRA. In 2019, FINRA fined Spartan Capital Securities $250,000 for failing to supervise its brokers and allowing them to engage in excessive trading.
Spartan Capital Securities has also been the subject of numerous arbitration awards in favor of its customers. In arbitration, investors can resolve disputes with their brokerage firm outside of court. In many cases, arbitration awards have been rendered against Spartan Capital Securities, finding that the firm engaged in misconduct and ordered the firm to pay its customers damages.
What to Do if You Have a Complaint Against Spartan Capital Securities
If you have a complaint against Spartan Capital Securities, you should first contact the firm directly. If you are unable to resolve your complaint with the firm, you can file a complaint with FINRA. FINRA can investigate your complaint and take action against the firm if it finds that the firm engaged in misconduct.
You may also be able to file an arbitration claim against Spartan Capital Securities. Arbitration is a process in which a neutral arbitrator resolves disputes between investors and brokerage firms. Arbitration can be a faster and more efficient way to resolve disputes than going to court.
If you are considering filing a complaint against Spartan Capital Securities, you should consult with an experienced securities attorney. An attorney can help you understand your rights and options and can represent you in any legal proceedings.
Spartan Capital Securities is a brokerage firm with a history of customer complaints alleging a variety of misconduct, including excessive trading, unsuitability, and fraud. If you have a complaint against Spartan Capital Securities, you should contact the firm directly or file a complaint with FINRA. You may also be able to file an arbitration claim against the firm.