FINRA Files Complaint against Spartan Capital Securities, LLC
According to the Financial Industry Regulatory (FINRA), its Department of Enforcement has filed a complaint against Spartan Capital Securities, LLC (CRD # 146251) in connection with its alleged failure to file or timely file amendments to Forms U4 and U5.
From January 1, 2015 to December 31, 2020, Spartan Capital Securities, LLC purportedly failed to file, or to timely file, 223 amendments to the Uniform Applications for Securities Industry Registration or Transfer (Forms U4) and Uniform Termination Notices for Securities Industry Registration (Forms U5) for 72 of its registered representatives, according to the complaint.
The CRD system shares information from the Uniform Registration Forms that are submitted by broker-dealers and regulatory authorities to the public through FINRA’s free BrokerCheck system. Form U4 and Form U5 are submitted by broker-dealers and are designed to report information about registered representatives, such as customer complaints and bankruptcies, in order to protect consumers.
Spartan allegedly failed to disclose, or to timely disclose, hundreds of reportable events involving its representatives, including customer arbitrations, customer complaints, bankruptcies, and unsatisfied liens and judgments, according to FINRA.
Among its alleged disclosure failures, Spartan failed to amend, or to timely amend, the Forms U4 and Forms U5 of its executive officers and a branch manager to disclose customer arbitrations against those registered representatives, including primarily the Forms U4 of the firm’s two most senior executives.
The two executives each allegedly failed to amend, or to timely amend, their Forms U4 to disclose arbitration filings and resolutions thereof on 38 and 15 occasions, respectively, according to FINRA. The findings allege that Spartan’s failure to amend, or to timely amend, the Forms U4 and Forms U5 of its executive officers and a branch manager was willful, as were the two executives’ alleged failures to amend, or to timely amend, their own Forms U4.
FINRA further alleges that the Respondents’ willfulness is demonstrated by, among other things, their continuing refusal to disclose arbitrations despite warnings from FINRA in 2017 and 2018.
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