Investors considering legal action against Spartan Capital Securities or concerned about potential misconduct by the firm should be aware of recent regulatory actions and lawsuits. This article provides a clear overview of the situation.
What is Spartan Capital Securities?
Spartan Capital Securities (SCS) is a FINRA-registered brokerage firm offering investment services to clients. These services typically include portfolio management, securities trading, and financial planning advice.
Complaints and Regulatory Actions Against Spartan Capital Securities
Spartan Capital Securities has faced complaints from investors and regulatory actions from FINRA (Financial Industry Regulatory Authority) alleging various forms of non-compliance.
One recurring concern is churning, a practice where brokers make excessive trades in a client’s account to generate commissions, regardless of the investment’s benefit to the client.
Recent Lawsuits and Investigations
Several legal actions and investigations raise questions about Spartan Capital Securities’ business practices. Here are some key examples:
- SEC v. Spartan Trading Company, LLC: The Securities and Exchange Commission (SEC) filed a lawsuit against an affiliate of Spartan Capital Securities alleging fraudulent misrepresentation of securities.
- Complaints against John Palma: A former broker at SCS, John Palma, faced customer complaints alleging unsuitable investment recommendations and unauthorized trading.
- FINRA Sanctions against Spartan Capital Securities: FINRA sanctioned Spartan Capital Securities for supervisory failures related to broker misconduct.
- Spartan Capital Sec. v. Vicinity Motor Corp.: This lawsuit highlights a separate legal matter where SCS itself is the suing party in a business dispute.
- Broker John Lowry: Investor Losses Investigation: Law firms are investigating potential investor losses caused by broker John Lowry of Spartan Capital Securities.
How to Know if You Have Been Impacted and Steps to Take
If you are a client of Spartan Capital Securities and have concerns about your investments, here are some steps to take:
- Review your account statements closely: Look for signs of excessive trading activity or unsuitable investments compared to your risk tolerance.
- Consult with an attorney specializing in securities law: An attorney can evaluate your situation and advise you on potential legal options.
- Stay informed: News outlets and legal websites may provide updates on ongoing lawsuits and investigations involving Spartan Capital Securities.
Conclusion
Investors who suspect wrongdoing by Spartan Capital Securities or have experienced losses in their accounts should consider seeking legal counsel. By staying informed and taking proactive steps, investors can potentially recover their losses and hold the firm accountable.
