Last Updated : February 2025
Investing your hard-earned money requires trust in your financial advisor and broker-dealer. However, a detailed review of Spartan Capital Securities, LLC’s FINRA BrokerCheck report reveals a troubling pattern of regulatory violations, customer complaints, and potential misconduct that investors should carefully consider.
Company Overview
Spartan Capital Securities, LLC, founded in June 2007 and headquartered in New York City, is a limited liability company registered with the SEC and multiple state securities regulators. While registered to conduct various securities-related businesses, the firm has accumulated a significant history of regulatory actions and customer arbitrations.
Regulatory Landscape
Our analysis of the FINRA BrokerCheck report uncovers multiple serious regulatory issues:
1. FINRA Rule 8210 Compliance Failures In November 2024, FINRA initiated proceedings against Spartan Capital for repeatedly failing to:
- Timely file amendments to Uniform Applications (Forms U4 and U5)
- Disclose customer arbitrations involving executive officers
- Comply with basic regulatory reporting requirements
2. State-Level Regulatory Actions The firm has faced actions from multiple state regulators, including:
- Missouri: $9,800 fine for absent or late disclosures
- New Jersey: Supervisory agreement violations
- New Hampshire: Telemarketing rule violations
- Iowa: $15,000 penalty for do-not-call list infractions
3. Arbitration and Legal Challenges
Between 2015 and 2019, Spartan Capital was named in at least four significant FINRA arbitration cases involving serious allegations:
- Breach of fiduciary duty
- Unauthorized trading
- Account churning
- Misrepresentation
- Failure to supervise
These arbitrations resulted in monetary awards totaling over $400,000, demonstrating substantial customer harm.
Individual Financial Advisor Concerns
We are investigating financial advisors with this firm and will shortly update with specific individuals who have been or are currently subject to customer complaints and regulatory scrutiny.
Key Takeaways for Investors:
- Multiple regulatory bodies have found systematic compliance failures
- Significant monetary penalties across various jurisdictions
- Repeated patterns of misconduct raising serious investor protection concerns
- Ongoing legal and regulatory challenges suggest potential systemic issues
Frequently Asked Questions About Investment Misconduct
How do I know if I have a valid claim against a broker-dealer?
Look for signs such as:
- Unauthorized trades in your account
- Investments that don’t match your risk tolerance
- Significant unexplained losses
- Failure to disclose important investment information
A free consultation with our securities litigation experts can help you determine if you have a viable case.
What types of compensation can I recover in a securities fraud claim?
Potential recoveries may include:
- Lost investment principal
- Investment losses
- Legal fees
- Punitive damages in cases of egregious misconduct Each case is unique, and the specific recoverable damages depend on the circumstances of your individual situation.
How long do I have to file a claim against a broker-dealer?
Statute of limitations vary by state and type of claim:
- FINRA arbitration claims typically must be filed within 6 years of the alleged misconduct
- State securities law claims may have different time limits
- Some claims have shorter reporting windows It’s crucial to act quickly to preserve your legal rights.
What is the difference between FINRA arbitration and a lawsuit?
FINRA arbitration:
- Typically faster and less formal than court litigation
- Lower legal costs
- Binding decision
- Specialized in securities disputes A lawsuit may be appropriate in some complex cases, which our attorneys can help you evaluate.
How much does it cost to pursue a claim?
Patil Law, P.C. handles most securities fraud cases on a contingency fee basis:
- No upfront costs to you
- We only get paid if we win your case
- Initial consultations are always free This approach ensures we’re aligned with your goal of recovering your losses.
Can I still pursue a claim if I agreed to arbitration in my original investment contract?
Yes, in many cases. Predispute arbitration agreements are not always fully enforceable, especially in cases of significant misconduct. Our attorneys can review your specific situation and advise you on the best course of action.
Take the Next Step: Protect Your Investments
Don’t let financial misconduct go unchallenged. If you suspect you’ve been a victim of investment fraud or broker negligence, time may be of the essence.
Contact Patil Law, P.C. today for a free, confidential consultation: Phone: 800-950-6553
Our dedicated team of securities litigation experts is committed to holding financial institutions accountable and helping investors recover their losses.
This post is intended solely for informational purposes and does not constitute legal advice. Every case is unique and should be evaluated individually by qualified legal counsel. For more brokerage firm investigations by Patil Law, please visit the Brokerage Firm Investigations page.