Investors Lose $934,000 From Allegedly Unsuitable Trading Strategy
The Financial Industry Regulatory Authority (FINRA) has filed a 37-page complaint against Spartan Capital Securities registered representative, Mark Augustus Reda. The New York-based broker, who has 20 disclosures on his BrokerCheck account, is under investigation for allegedly recommending an unsuitable investment strategy and excessively trading in customer accounts.
Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is speaking to customers of Spartan Capital Securities Mark Reda who have suffered significant investment losses to help them explore their legal options. Call (800) 259-9010 or in New York call (716) 261-3529.
Spartan Capital Securities Broker Allegedly Churned in Customers’ Accounts
According to FINRA, from 2017 through 2019, Reda allegedly recommended to customers an investing strategy that was unsuitable and involved making active trades while anticipating corporate announcements. The self-regulatory organization (SRO) contends that the Spartan Capital Securities broker failed to look into whether, considering the fees and commissions customers would have to pay to employ this strategy, it was unlikely that they stood to make any profit.
Specifically, FINRA contends that Reda implemented this unsuitable trading strategy through multiple trades in over 60 customer accounts. While these investors would go on to lose $934K, Reda earned nearly $953K in commissions and fees.
Meanwhile, alleges FINRA, Reda excessively traded and churned in at least 21 customer accounts. These clients paid nearly $265K in fees and commissions. Not only that but also, the SRO contends that the Spartan Capital Securities broker made unauthorized trades for customers and charged excessive commissions worth over 200K, and committed other violations.
Broker Mark Reda Named in Various Customer Disputes
Customer disclosures involving Mark Reda during his 21 years in the industry go far back beyond the period at issue in FINRA’s complaint. Below, are a handful of the investor claims that this Spartan Capital Securities broker has faced:
- 1/2020: Alleging misrepresentations and unsuitability, this claimant is seeking $72K in damages.
- 4/2018: This investor, alleging unauthorized trading and churning, is requesting $16K in damages.
- 7/2017: This investor fraud claiming excessive commissions was settled for $45K.
- 6/2016: This unsuitability case was resolved with a $26K settlement.
- 4/2016: Alleging breach of fiduciary duty and unauthorized trading, this customer dispute was settled for $85K.
- 3/2016: A failure to place stop-loss orders claim ended with a $14,800 settlement.
- 3/2016: Claiming unauthorized treading and excessive trading, this customer received a $112,500 settlement.
- 1/2016: Broker-dealer PHX Financial let Reda resign after allegedly violating the firm’s cell phone policy.
- 1/2016: These unauthorized transactions case was settled for $120K.
- 10/2001: Reda volunteered to resign from INVESTPRIVATE after a dispute with the customer.
- 1/2000: This customer dispute alleging unauthorized activities by Reda was settled for nearly $13,500.
Other firms where Mark Reda used to be registered include First Standard Financial Company, Laidlaw & Co., Clark Dodge & Co., John Thomas Financial (now expelled), Prestige Financial Center (now expelled), National Securities Corp., Clark Street Capital (now expelled), Parker Financial Group, Joseph Stephens & Co., Joseph Gunnar & Co., Bluestone Capital Securities, and Dalton Kent Securities.
Get in Touch with Our Seasoned Broker Fraud Law Firm
Our broker fraud attorneys are not afraid to go up against even the largest firms on Wall Street if it means recovering damages on behalf of our clients who were the victims of fraud or negligence. SSEK Law Firm has recovered many millions of dollars for retail investors, institutional investors, and high-net-worth individual investors. Call us at (800) 259-9010 today.