Former Spartan Capital Securities Broker Accused of Unauthorized Trading
The Financial Industry Regulatory Authority (FINRA) has barred ex-Spartan Capital Securities registered representative Marc Augustus Reda. The broker is accused of excessively trading in the accounts of clients. During his 22 years in the industry, Reda worked at 15 brokerage firms. He has at least 20 disclosures on his BrokerCheck record that go as far back as 2000.
Our New York securities attorneys offer free, no-obligation case consultations to current and former customers of Marc Reda who suffered severe investment losses. If you would like to explore your legal options, contact us at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today.
Marc Reda Was Allegedly Negligent and Committed Due Diligence Failures
Reda consented to the entry of findings in FINRA’s case against him but without admitting to or denying the claims. The self-regulatory organization (SRO) found that the ex-Spartan Capital Securities broker allegedly excessively traded in certain customers’ accounts. This practice is also known as churning. Additionally, the broker reportedly engaged in unauthorized trading.
FINRA said that Reda made unsuitable recommendations. This purportedly included, in certain instances, recommending speculative securities transactions without having reasonable grounds for thinking they were suitable for investors given their portfolios.
The ex-Spartan Capital Securities broker also allegedly profited from making unsuitable trades for customers. This resulted in more than $232K in losses in accounts with an aggregate average monthly account value of a little over $262K.
FINRA also accused Reda of charging “excessive, unfair, and unreasonable commissions.” This included purportedly getting around his broker-dealer’s supervisory procedures so that he could charge over 5% on transaction proceeds.
Marc Reda allegedly failed to consider the impact these transactions would have on customers’ ability to make a profit and neglected to conduct the proper due diligence.
Examples of Recent Disclosures Involving Ex-Spartan Capital Securities Broker Marc Reda
- December 2021: This customer requests more than $83K in damages and alleges churning, misrepresentations, failure to supervise, and other claims.
- January 2020: A $5700 settlement was reached in this unsuitability case.
- December 2018: A FINRA arbitration panel awarded this investor more than $15K in his unauthorized trading case.
- June 2017: This excessive commissions case was settled for $45K.
- June 2017: FINRA suspended Reda for three months for alleged unauthorized trading.
- April 2016: This unauthorized trading case was settled for $85K.
- January 2016: The claimant agreed to settle this unauthorized trading case for $112,500.
Other firms where Marc Reda used to be registered include First Standard Financial Company, Phx Financial, Laidlaw & Co., Clark Dodge & Co., John Thomas Financial, Prestige Financial Center, etc.
Skilled Securities Attorneys
SSEK Law Firm has represented thousands of investors against broker-dealers that failed to detect, prevent, or stop broker misconduct by their financial advisors. If you worked with ex-Spartan Capital Securities broker Marc Reda and want our help recovering your investment losses, contact our New York securities lawyers at (716) 261-3529. Throughout the rest of the United States, call (800) 259-9010 today.