Spartan Capital Securities, a stock brokerage firm, has received several customer complaints against their brokers. Most of these accusations concern recommendations made by Spartan to follow investment plans which do not fit with them and often involve excessive trading that leads to large financial losses for investors.
To gain a fuller picture of these complaints, it’s crucial to assess a company against industry norms in terms of performance. This enables an accurate evaluation of customer service and complaint resolution effectiveness at your organization.
Poor Customer Service
Investors entrusting their assets to a brokerage firm must expect them to act ethically and fairly; otherwise, the results can be disastrous.
When companies receive multiple complaints, it is imperative to examine each one and ascertain if they represent isolated incidents or systemic problems. This article explores the history of Spartan Capital Securities complaints while providing an in-depth assessment of what customers have raised as concerns.
Spartan Capital Securities has received numerous customer complaints alleging inappropriate investments and excessive trading activity, prompting FINRA to investigate and open several arbitration cases against it. Investors should check broker track records on FINRA BrokerCheck prior to investing their money with any broker; those suffering losses due to financial advisor misconduct should consult a knowledgeable attorney who can advise them of their legal options for seeking reimbursement of investment losses from those responsible parties.
Unsuitable Investments
Spartan Capital Securities Complaints has come under scrutiny due to allegations that certain of its brokers engaged in inappropriate investments, churning and excessive trading activities which ultimately caused losses for clients.
These complaints have been lodged with the Financial Industry Regulatory Authority, or FINRA, an organization responsible for monitoring companies and mediating disputes. FINRA has ordered some investors to receive their money back, along with some reimbursement from a certain broker company. Prior to investing with any broker or investment advisory firm, investors should always conduct due diligence using tools like BrokerCheck available from FINRA as well as consulting an independent advisor who doesn’t work on behalf of any specific entity.
Spartan Capital Securities’ broker Mark Reda has become the source of much controversy. After receiving 19 complaints to FINRA regarding his actions and losing some arbitration cases where individuals decide who is right in disputes between investors, Reda was accused of providing bad advice that caused significant money loss for some investors.
Broker Mark Reda
Spartan Capital Securities is a brokerage firm catering to high-net-worth clients with an array of services, from wealth management and investment advisory capabilities, such as private placements, mergers and acquisitions assistance to mergers. However, their reputation has been damaged by customer grievances and regulatory violations.
Some of these complaints center around brokers recommending inappropriate investments that don’t meet clients’ goals, risk tolerance and financial situation – leading to substantial investment losses for clients. This type of claim can have devastating repercussions for them and their investments.
Other complaints against Spartan Capital Securities representatives allege poor communication. This can be frustrating for investors who require frequent updates on their portfolios, while an absence of transparency may result in misunderstands that could have dire financial repercussions.
Regulatory Actions
Spartan Capital Securities has taken complaints seriously and taken measures to comply with FINRA regulatory standards. They have implemented changes designed to increase transparency and client-driven standards to mitigate advisor misconduct risks.
According to FINRA, Lowry and Monchik failed to amend their Forms U4 and U5 to disclose hundreds of customer arbitration claims they settled while employed with Spartan Securities, delaying filing their forms an average of 216 days after receiving notice that they needed to.
Investors should take great care when selecting their financial advisor, avoiding practices known to lead to investor losses such as excessive trading (known as “churning”) which can adversely impact an account and break trust between adviser and client. If you have experienced substantial investment losses it is advisable to contact an attorney who can assist in recovering what has been lost.