Spartan Capital Securities Firm has been under constant criticism because of its alleged scams and incompetency in filing its registered LLC. Therefore, The Enforcement Team of FINRA has filed Spartan Capital Securities complaints regarding non-compliance of various sections.

In this blog, let us delve into the details of the fraudulent activities this Spartan Capital firm was involved in and what charges were applied to them by FINRA under different sections.

Why did FINRA file complaints against Spartan Capital Securities?

FINRA which is an abbreviation of Financial Industry Regulatory Authority is a government organisation which is responsible for maintaining the decorum of the US brokers market. This agency’s purpose is to monitor the financing of various Broker Firms and report any irregularity that they point out, to higher authorities.

FINRA also makes sure all the investors have the security of investment in the registered Brokerage firms. In addition, they are always responsive to any complaints regarding any fraud activity that an investor reports.

The Enforcement Taskforce of this agency noticed not only one but 40 Spartan Capital Securities complaints in different regards. So, they investigated these complaints and found Spartan Capital breaching a lot of Regulatory laws of FINRA.

Therefore, FINRA put a complaint comprising 37 pages in which every illegal activity of this Brokerage Firm was mentioned. Furthermore, FINRA also sued the frontier Representative of Spartan Capital, Mark Reda under all these claims.

Spartan Capital Securities Complaints List:

Let us now discuss some of the major fraud activities for which FINRA has filed complaints against this Broker Firm Spartan Capital Securities and its other Management Heads and Employees.

For an Inapposite Investment Strategy:

The FINRA Enforcement team filed a complaint against Mark Reda for misguiding the investors into following inappropriate investing strategies that led to the loss of investors’ money. Almost 60 investors and customers invested their money in their accounts and Mark Reda did excessive active trading on their accounts.

This resulted in the loss of money for all investors which was around $934,000. However, Mark made a whopping $953,000 through the investing fee and commission for making them invest in an exciting strategy.

The complaint continued reporting that Mark Reda also followed unauthorized trading methods and took excessive open trades on twenty-one other accounts of customers. Mark charged almost $265,000 from these customers for trading on their accounts. These customers ended up losing their money while Mark collected over $200,000 of money through fees and commissions.

Customer Arbitrations:

Like Mark Reda, the two other chief executives of Spartan Capital broker firm breached two rules, 1122, and 2010 of FINRA. Therefore, FINRA filed a complaint against Monchik and Lowery.

FINRA accuses both of these people against the charges of customer arbitration. Both of them submitted their U4 Forms which had false and incomplete information regarding their customer’s acquisition.

Monchik did not mention the arbitration resolutions of 15 customers in these U4 Forms on purpose. While John Lowery did the same for at least 38 customers and filed the forms without these customers’ arbitration resolutions knowing the outcome of this act.

These non-compliances fall under Article 5, Sections 2(c) and 3(b) of FINRA laws of regulation.

Other General complaints involving Spartan Capital Firm:

Michael Freeman: A former employee at this Firm:

Michael Freeman while working with Spartan Capital has been involved in two customer complaints regarding dumping their investments. In one case, the judiciary issued an arbitration award against him and those who employed him. On the other hand, FINRA interfered in the second complaint and the Broker Firm had to settle the issue on the side of the client.

Complaints against Kostas Tsamos:

One of the several complaints, one is of Kostas Tsamos. He was also a former employee of Spartan Capital and was involved in a total of seven customer objections related to their loss of investment. However, he did not commit all these frauds while working with Spartan Capital Firm. All the firms where he committed these frauds resolved five out of 7 of these objections by providing the settlement to the customers and investors. Out of the remaining two complaints, Kostas’s previous employer did not accept the allegations and objections against him. While the other complaint justice is not served and the case is still going on.

Complaints against Anthony Shelby:

Another complaint among the Spartan Capital Securities complaints was against Anthony Shelby who was then employed at Spartan Capital Firm. There has been an investor complaint that he did because of his investment loss with this firm. That customer put this objection to FINRA, who took its notice immediately. FINRA pointed out unsuitability and fraudulent activity. As of now, the investor put a complaint against Shelby’s new broker firm, Legend Securities. According to him, he lost his money due to misbehaviour of Anthony but this case is not over yet.

Complaints against Samuel Girgiss:

According to reports, Samuel Girgiss is involved in 2 investor objections and complaints. The investor complained so that he could get his investment money back. However, he remained successful and received his investment back. While the other complaint against the same charges has not been proven yet. Therefore, that case is currently going on against Spartan Capital Securities. The investor said that he lost his investment because of the mishandling of the investment by Samuel Girgiss.

Complaints against Juan Alesjo:

Further infamous objections among the complaints against Spartan Capital Securities are against their employee Juan Alejos. He is a wanted person in 5 different investor complaints. Most of them are to revolver their funding. Out of these 5 complaints, 2 were solved and customers got their money back.

No further steps have been taken by customers thus far despite the fact that a single complaint made by a customer of Juan Alejos was rejected. However, there are two more legal cases against Spartan Capital Securities with pending allegations by customers who claim that they have sustained monetary damages from Juan’s disputed behaviour.

On A Final Note:

Over the years, Spartan Capital faced numerous fraud cases against it. Mostly, in such cases, their worker and employees were involved. Among these Spartan Capital Securities complaints, most of the investors filed complaints to get their investments back. Many of them remained successful while some cases are still pending.