Spartan Capital Securities is a full-service financial firm based in New York City. It provides a wide range of investment and wealth management services. Established to meet the needs of individual and institutional investors, the firm focuses on personalized strategies to help clients achieve their financial goals.
If you suffered investment losses of more than $100,000 due to the alleged misconduct of Spartan Capital Securities, Meyer Wilson’s lawyers who handle brokerage firm investment loss claims are here for you. Our legal team has recovered over $350 million for our clients since 1999.
Led by industry-renowned trial attorneys, U.S. News named us among The Best Lawyers in America.® We can investigate your Spartan Capital complaints, pursue the recovery of your losses in arbitration, and hold Spartan Capital Securities accountable for their actions if the firm acted inappropriately.
Reach out to us today to protect and restore your financial security via a Spartan Capital lawsuit or arbitration if you believe you have a valid claim..
About Spartan Capital Securities
Spartan Capital Securities is an integrated financial services firm established in New York. It has been operating as a Limited Liability Company (LLC) since 2007.
The services offered by Spartan Capital Securities include:
- Investment banking
- Wealth management
- Institutional trading
- Equity research
Spartan Capital Securities operates as a registered broker-dealer, so it is regulated by the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC). These regulatory bodies ensure the firm follows industry rules to protect clients and maintain fair practices.
If the firm or its advisors fail to meet these standards, they may face consequences such as fines, disciplinary actions, or other penalties from the regulators. This oversight helps safeguard clients’ interests and promotes accountability in the financial industry.
An investment fraud lawyer will help you determine if you have grounds for a brokerage firm investment loss claim.
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Claims Against Spartan Capital for Potential Fraud and Misconduct
Spartan Capital Securities and certain advisors have faced allegations of misconduct, leading to regulatory actions by FINRA. These issues have highlighted potential concerns regarding the firm’s compliance failures.
According to the BrokerCheck Report, Spartan Capital Securities, LLC currently has 13 disclosures, eight regulatory events, one civil event, and four arbitrations.
Compliance Failures
Between June 2021 and August 2023, Spartan Capital failed to respond promptly to three FINRA Rule 8210 requests, which require firms to provide necessary information for regulatory reviews.
Despite extensions, the firm missed deadlines, requiring FINRA to initiate expedited proceedings to enforce compliance. These delays hindered FINRA’s review of the firm’s net capital calculations, particularly regarding non-cash compensation and other financial transactions.
As part of the settlement, Spartan Capital must:
- Pay a $115,000 fine.
- Accept a formal censure.
- Retain an independent consultant to review and enhance its compliance and supervisory processes.
Supervisory Issues
FINRA also found that Spartan Capital lacked effective supervisory systems to manage regulatory requests. The firm did not have a reliable method to track deadlines or adequately train its compliance staff, violating FINRA Rule 3110(a).
Excessive Trading
Michael Venturino, a former advisor with Spartan Capital Securities, has been permanently barred from the securities industry following a FINRA investigation into allegations of excessive trading (churning) in at least six customer accounts.
Churning occurs when an advisor frequently and excessively buys and sells securities in a client’s investment account primarily to earn high commissions rather than to benefit the client. This unethical practice disregards the client’s financial goals and leads to unnecessary transaction fees and significant losses in the account. A lawyer can help you prove churning.
The Office of Hearing Officers (OHO) determined that Mr. Venturino willfully violated federal securities laws and industry rules. Despite his denial of wrongdoing, the panel found him liable and ordered him to pay $171,419 in disgorgement.
Failure to Disclose Customer Arbitrations
On March 28, 2023, a hearing panel fined the firm $600,000 and censured it for not updating required forms (Forms U4 and U5) to disclose important information about customer arbitrations and financial events involving its representatives.
Regulators found the firm willfully failed to disclose material information about customer arbitrations, which is required under industry rules.
Recovering Investment Losses Caused by Spartan Capital Securities
Investors who have experienced losses due to Spartan Capital Securities’ misconduct or negligence may recover their funds through regulatory actions. If the firm’s advisors engage in unsuitable investment recommendations, unauthorized trading, misrepresentation, or other violations of securities laws, affected investors can file complaints with FINRA.
Most of these cases are resolved through FINRA arbitration. Consult a securities fraud attorney from Meyer Wilson for professional guidance on the best course of action to pursue claims and protect your rights.
Understanding FINRA Arbitration
FINRA arbitration is a dispute resolution process that resolves conflicts between investors, financial firms, and advisors. It is an alternative to going to court and is often faster and less formal. In arbitration, both parties present their case to a neutral panel of arbitrators, who review the evidence, listen to arguments, and make a binding decision.
The arbitrator’s decision is final and enforceable. While arbitration can be a more efficient way to resolve disputes, it’s important to have experienced legal representation to navigate the process.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Call a Spartan Capital Securities Fraud Lawyer Today
As an investor, you have the right to seek recovery for losses caused by unethical actions or decisions that harmed your interests. Partnering with an experienced investment fraud attorney can greatly strengthen your position. Cases like these often involve complicated financial and legal issues.
At Meyer Wilson, we tailor our legal strategies to the unique circumstances of each case. Our team has successfully represented clients across the United States. Contact us to explore your options and discuss your case.
Recovering Losses Caused by Investment Misconduct.
