Articles Tagged with spartan capital securities

Chicago-based Stoltmann Law Offices has represented investors who’ve suffered losses from brokers who churn customer accounts. One of the most perennial abuses in the brokerage industry is when broker-adviser “churn” accounts to generate extra commissions or fees. When that happens, it’s difficult for clients to make money because their accounts are consumed by transaction fees.

Marc Augustus Reda, a registered representative for Spartan Capital Securities in New York City, was recently charged by FINRA, the securities industry regulator, with overcharging clients some $2 million. “From 2017 through 2019,” reports fa-mag.com, “Reda, among other things, recommended unsuitable investments to his clients and traded excessively in those accounts, the FINRA complaint said. His activities resulted in 66 clients paying a total of $952,764 in commissions and fees, while incurring total net losses of $934,482,” FINRA said.

Reda generated the excessive fees through an “active trading” strategy in which he made trades without his clients’ specific permission. FINRA noted that “Reda failed to consider that the substantial commissions and costs associated with his investment strategy made it unlikely his customers could make any profits.”

Stoltmann Law Offices is investigating Christian Herrera, a former registered broker with Spartan Capital Securities. Mr. Herrera was accused of unsuitable investments, unauthorized trading, overconcentrating accounts, and other claims. Tehese are against securities rules and regulations. Herrera was registered with Continental Broker-Dealer Corp in Carle Place, New York from April 2000 until September 2002, Gunnallen Financial in New York, New York from August 2002 until December 2005, Great Eastern Securities in Syosset, New York from December 2005 until October 2006, Garden State Securities in New York from October 2006 until February 2008, Empire Asset Management Co. in New York from February 2008 until August 2008 and Spartan Capital Securities in New York from February 2009 until October 2015. He is currently registered with Laidlaw & Company in New York and has been since September 2015. He has five customer disputes against him. Please call our Chicago-based law offices today.

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