New York, NY – December 12, 2025 – Ronald G. Smith (CRD# 6038062), a former financial advisor previously registered with Spartan Capital Securities, LLC and Sanford C. Bernstein & Co., LLC, was permanently barred by FINRA on November 10, 2025, for refusing to provide information and documents during a regulatory investigation. Additionally, Smith has one pending customer arbitration alleging breach of fiduciary duty, unsuitable investment recommendations, unauthorized trading, and misrepresentation involving private placements, with alleged damages of $250,000.00. Smith also has one closed customer complaint that was denied. This post provides a detailed overview of the regulatory bar, pending arbitration, and investor rights.
BrokerCheck Snapshot
Name: Ronald G. Smith
CRD #: 6038062
Current Status: Not currently registered (barred by FINRA)
Previous Firms: Spartan Capital Securities, LLC; Sanford C. Bernstein & Co., LLC
Location: New York, NY; Stamford, CT
Years in Industry: 12
Number of Disclosures: 3 (1 regulatory event, 2 customer disputes)
FINRA Permanent Bar Against Ronald G. Smith
On November 10, 2025, FINRA issued a permanent bar against Ronald G. Smith in all capacities for refusing to cooperate with a regulatory investigation. According to FINRA’s findings, Smith failed to provide information and documents requested in connection with an investigation into potential excessive trading of customer accounts at his member firm.
Regulatory Action Details:
Regulatory Authority: FINRA
Date Initiated: November 10, 2025
Docket/Case Number: 2018056490334
Employing Firm: Spartan Capital Securities, LLC
Product Type: No Product
Allegations:
Without admitting or denying the findings, Smith consented to the sanction and to the entry of findings that he refused to provide information and documents requested by FINRA in connection with its investigation into potential excessive trading of customer accounts at his member firm. The findings stated that while Smith submitted a partial response, he did not provide all of the requested information and documents, including his electronic communications.
Resolution:
- Current Status: Final
- Resolution Type: Acceptance, Waiver & Consent (AWC)
- Resolution Date: November 10, 2025
- Sanctions Ordered: Bar (Permanent)
- Capacities Affected: All Capacities
- Duration: Indefinite
- Start Date: November 10, 2025
Understanding FINRA Rule 8210 and Permanent Bars
FINRA Rule 8210 grants the regulator broad authority to request information and testimony from registered representatives during investigations. Broker misconduct investigations often require brokers to produce account records, communications, and other documentation to determine whether violations occurred.
Refusing to comply with a FINRA Rule 8210 request is considered a serious violation that typically results in a permanent bar from the securities industry. When brokers fail to cooperate with regulatory investigations, they undermine FINRA’s ability to protect investors and maintain market integrity.
A permanent bar means the individual can no longer work in any capacity in the securities industry. While individuals can apply for re-entry after a specified period, permanent bars for Rule 8210 violations are rarely reversed.
Pending Customer Arbitration Against Ronald G. Smith
In addition to the regulatory bar, Smith has a pending customer arbitration filed with FINRA alleging multiple forms of misconduct involving private placement investments.
Arbitration Details:
Employing Firm: Spartan Capital Securities, LLC
Date Complaint Received: February 22, 2024
Arbitration Filing Date: February 21, 2024
FINRA Case Number: 24-00400
Status: Pending
Allegations:
The claimant alleges breach of fiduciary duty, negligence, failure to supervise, failure to recommend suitable investments, failure to act in claimant’s best interest, unauthorized trading, and misrepresentation and omission of material facts.
Product Type: Private Placement
Alleged Damages: $250,000.00
The complaint involves allegations that Smith recommended unsuitable private placement investments, conducted unauthorized trading, and misrepresented or omitted material facts about investment risks. Private placements are typically illiquid, high-risk investments that may only be suitable for sophisticated investors who understand the risks and can afford potential losses.
Additional Customer Complaint (Closed)
Smith also has one closed customer complaint from his time at Spartan Capital Securities that was denied.
Complaint Details:
Employing Firm: Spartan Capital Securities, LLC
Date Complaint Received: January 21, 2021
Status: Closed/No Action (as of November 28, 2022)
Product Type: Equity Listed (Common & Preferred Stock)
Alleged Damages: $42,035.00
Allegations:
Customer alleged market losses in his account for activity that occurred over a year period of time. The allegations were non-specific.
Broker’s Response:
Smith stated: “The client was an inherited account, and is a sophisticated and accredited investor. He was fully aware of all transactions and actively involved in decision making with regard to his account. He is now seeking market losses after 4 years of which were related to his prior broker.”
The complaint was closed with no action taken against Smith.
What Is Excessive Trading and Churning?
Excessive trading, also known as churning, occurs when a broker executes an excessive number of trades in a customer’s account primarily to generate commissions rather than to benefit the customer. This violates the broker’s duty to recommend suitable investments and act in the customer’s best interest.
Signs of excessive trading include:
- High turnover ratio: Frequent buying and selling of securities
- Disproportionate commissions: Commission charges that are excessive relative to account size
- Control over account: Broker exercises discretionary authority or de facto control
- Lack of economic benefit: Trading pattern does not align with customer’s investment objectives
Churning can result in substantial losses for investors through excessive commission charges and tax consequences from frequent trading. Brokers who engage in churning violate FINRA rules and securities laws.
Pattern of Conduct / Risk Factors
While Mr. Smith has been in the securities industry since 2013 and has three disclosure events on his BrokerCheck record, the nature and severity of these disclosures raise significant investor protection concerns.
Most notably, FINRA permanently barred Smith from the securities industry for refusing to cooperate with a regulatory investigation into potential excessive trading. This represents one of the most serious sanctions FINRA can impose and indicates Smith chose non-cooperation over transparency.
The pending arbitration involves serious allegations of breach of fiduciary duty, unsuitable recommendations, unauthorized trading, and misrepresentation involving private placements with alleged damages of $250,000.00. Private placement investments carry substantial risks and are typically only suitable for sophisticated investors who understand the illiquidity and potential for total loss.
When a broker is permanently barred by FINRA while simultaneously facing a pending customer arbitration involving substantial allegations, it may indicate systemic issues with sales practices or failure to supervise by the brokerage firm.
Can Investors Recover Losses?
Investors who suffered losses after investing with Ronald G. Smith may be entitled to recover their losses through FINRA arbitration. Even though Smith is no longer registered with FINRA, claims can still be pursued against his former employing firms, including Spartan Capital Securities, LLC and Sanford C. Bernstein & Co., LLC.
Common claims in cases involving excessive trading, unsuitable investments, and unauthorized trading include:
- Churning and excessive trading
- Unsuitable investment recommendations
- Unauthorized trading
- Breach of fiduciary duty
- Misrepresentation or omission of material facts
- Failure to supervise by the brokerage firm
Patil Law, P.C. has over 15 years of experience representing investors in FINRA arbitration and securities litigation, with more than $25 million recovered for clients across 1,000+ cases. We provide a free, confidential consultation to review your potential claim. Our firm works on a contingency fee basis, meaning you pay no attorney fees unless we successfully recover money for you.
About FINRA Arbitration
FINRA arbitration is a streamlined dispute resolution process for securities-related claims. It offers a faster, more cost-effective alternative to traditional court litigation. Most cases are resolved within 12-16 months. Claims generally must be filed within six years of the incident, though the timeline can vary depending on the specific circumstances of each case.
Related Brokers and Firms
Investors who worked with advisors at Spartan Capital Securities or Sanford C. Bernstein may want to review their account statements for similar issues. Common problems include excessive trading, unsuitable investment recommendations in private placements, unauthorized transactions, and failure to supervise by the brokerage firm.
Frequently Asked Questions
What happened to Ronald G. Smith?
Ronald G. Smith was permanently barred from the securities industry by FINRA on November 10, 2025, for refusing to provide information and documents requested during a regulatory investigation into potential excessive trading of customer accounts. Smith consented to the bar without admitting or denying the findings. The findings stated that while Smith submitted a partial response to FINRA’s request, he did not provide all requested information and documents, including his electronic communications. The bar is effective indefinitely and affects all capacities.
What are the pending allegations against Ronald G. Smith?
Mr. Smith has one pending FINRA arbitration (Case #24-00400) filed February 21, 2024, alleging breach of fiduciary duty, negligence, failure to supervise, failure to recommend suitable investments, failure to act in claimant’s best interest, unauthorized trading, and misrepresentation and omission of material facts involving private placement investments. The alleged damages are $250,000.00. The case is currently pending in FINRA arbitration.
Can I still pursue a claim against Ronald G. Smith even though he’s barred?
Yes, investors can still pursue claims through FINRA arbitration even though Smith is barred from the securities industry. Claims can be filed against Smith’s former employing firms, including Spartan Capital Securities, LLC and Sanford C. Bernstein & Co., LLC. Brokerage firms have supervisory responsibilities and can be held liable for their brokers’ misconduct under failure to supervise claims.
What is excessive trading or churning?
Excessive trading or churning occurs when a broker executes an excessive number of trades in a customer’s account primarily to generate commissions rather than to benefit the customer. Signs include high turnover ratios, disproportionate commission charges, broker control over the account, and trading patterns that don’t align with investment objectives. Churning violates FINRA rules and securities laws.
What are private placements and why are they risky?
Private placements are securities offerings that are not registered with the SEC and are sold to a limited number of accredited or institutional investors. These investments are typically illiquid (cannot be easily sold), lack transparency, carry high fees, and involve significant risk of total loss. They are generally only suitable for sophisticated investors who understand the risks and can afford to lose their entire investment.
How long do I have to file a FINRA arbitration claim?
FINRA arbitration claims generally must be filed within six years from the occurrence or event giving rise to the claim. However, the statute of limitations can vary depending on state law and the specific facts of your case. It’s important to consult with a securities attorney promptly to preserve your rights.
About Patil Law, P.C.
Patil Law, P.C. is a securities litigation firm dedicated to representing investors who have suffered losses due to broker misconduct, unsuitable recommendations, and securities fraud. Founded in 2018 by attorney Chetan Patil, the firm focuses exclusively on FINRA arbitration and investment loss recovery.
With over 15 years of combined experience in securities law, Patil Law has successfully recovered more than $25 million for clients across 1,000+ cases. Attorney Chetan Patil earned his law degree from Case Western Reserve University School of Law. Attorneys Gabriela Dubrocq and Patricia Herrera earned their law degrees from University of Miami. The firm handles cases nationwide involving unauthorized trading, churning, unsuitable investments, breach of fiduciary duty, and failure to supervise.
Patil Law works on a contingency fee basis, meaning clients pay no attorney fees unless the firm successfully recovers money on their behalf. All consultations are free and confidential.
Contact Patil Law for a Free Consultation
If you lost money after investing with Ronald G. Smith or any broker at Spartan Capital Securities, LLC or Sanford C. Bernstein & Co., LLC, we can help. Our experienced securities attorneys will review your case at no cost and explain your options for recovering your investment losses.
Call us today at 800-950-6553 or email info@patillaw.com to schedule your free, confidential consultation. We handle cases nationwide and work on a contingency fee basis—you pay nothing unless we win.
Disclaimer:
The information in this post is based on FINRA BrokerCheck records and public filings. The pending arbitration described involves allegations that are unproven and contested. The closed customer complaint was denied with no finding of wrongdoing. All investors are entitled to fair treatment under securities laws. This is attorney advertising. Prior results do not guarantee a similar outcome. This communication is for informational purposes only and does not create an attorney-client relationship.
