Spartan Capital Securities, LLC (CRD# 146251) has accumulated numerous complaints from FINRA, state regulatory bodies, and investors who suffered losses due to broker misconduct. If you lost money with Spartan Capital Securities, you have legal options to pursue recovery—even if you signed an arbitration agreement.
Most investors who experienced losses at Spartan Capital Securities can file claims through FINRA arbitration, a streamlined legal process designed specifically to resolve disputes between investors and brokerage firms. This process exists because brokerage account agreements typically require arbitration instead of traditional court litigation.
The Law Offices of Robert Wayne Pearce, P.A. has investigated Spartan Capital Securities, analyzed its regulatory violations and customer complaints, and represented investors with claims of fraud, negligence, and breach of fiduciary duty against this firm and its financial advisors. If you believe you have a claim against Spartan Capital Securities, do not wait—statutes of limitations can bar your ability to recover losses. Free consultations are available to evaluate your case.
Can I Sue Spartan Capital Securities?
Yes, you can sue Spartan Capital Securities if you lost money due to the firm’s or its employees’ misconduct, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 45 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Spartan Capital Securities in FINRA arbitration proceedings, but WIN that arbitration. The easiest way to know if you have a viable case against Spartan Capital Securities is to call Attorney Pearce at our office.
How to Sue Spartan Capital Securities for Investment Losses
What Can I Do If I Lost Money at Spartan Capital Securities?
If you lost money at Spartan Capital Securities, you can pursue a claim through FINRA arbitration to recover your losses. FINRA arbitration works like a private court system specifically designed for investment disputes—a neutral panel reviews the evidence and decides whether the brokerage firm owes you compensation.
The arbitration agreement you signed when opening your account does not prevent you from pursuing claims; it simply directs where those claims must be filed. This process often moves faster than traditional litigation and was created to help investors like you hold firms accountable for misconduct.
Spartan Capital Securities has a documented history of regulatory problems, including failure to disclose customer arbitrations, supervisory lapses, and multiple FINRA sanctions totaling hundreds of thousands of dollars. These same supervisory failures that led to regulatory action may have directly contributed to the losses in your account—because when a firm fails to properly oversee its brokers, investors often pay the price.
Who can Help me Sue Spartan Capital?
The Law Offices of Robert Wayne Pearce, P.A. handles these exact types of cases against Spartan Capital Securities and can evaluate whether your situation supports a viable claim.
To file a claim, you’ll need to document your losses, gather account statements, and demonstrate how the firm’s misconduct caused your financial harm. The first step is a free consultation to review your account history and discuss your legal options.
What Is Spartan Capital Securities?
Spartan Capital Securities (CRD# 146251) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, Spartan Capital Securities is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Why Does Spartan Capital Securities Have So Many Bad Reviews and Customer Complaints?
Spartan Capital Securities operates as an independent broker-dealer, which means its financial advisors run their own businesses rather than working as direct employees. This franchise-style model creates supervision gaps because no on-site manager watches daily trading activity or reviews customer communications in real time.
Instead of having compliance officers at each location, independent broker-dealers rely on remote supervisors called Offices of Supervisory Jurisdiction (OSJs) to monitor brokers from far away. These OSJ supervisors often manage their own businesses too, which means they cannot devote full attention to catching problems before investors get hurt.
This weak oversight structure means nobody may review new accounts, check trading activity, or read client correspondence until long after potential misconduct has occurred. The North American Securities Administrators Association (NASAA) has documented that independent broker-dealers like Spartan Capital Securities experience more sales abuse and investor losses than traditional brokerage firms with proper on-site supervision.
Spartan Capital Securities Has Many Different Regulatory Problems
Spartan Capital Securities’ rapid growth has not been without consequences. There have been approximately 6 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) for a violation(s) of investment-related rules or regulations. In addition, there have been hundreds of customer complaints filed against Spartan Capital Securities for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Spartan Capital Securities is a repeat offender: there are over 6 FINRA-reported disciplinary proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems Spartan Capital Securities Has Faced Over the Years*
Spartan Capital Securities has been repeatedly censured, warned, and fined multi-millions of dollars for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
Hearing Panel Decision Imposes Sanctions on Firm for Failure to Disclose Customer Arbitrations and Dispositions
Brief overview: On March 28, 2023, a hearing panel rendered a decision in which the firm was censured and fined $600,000. The firm is also required to engage an independent consultant to review its supervisory procedures and to amend the Forms U4 and Forms U5 of its registered persons, including its executive officers, to accurately reflect the filing and disposition of customer arbitrations and written complaints. Additionally, the firm is ordered to pay joint and several hearing costs amounting to $17,768.31. The sanctions were imposed based on findings that the firm failed to timely amend the Forms U4 and Forms U5 of its registered representatives, including its executive officers, to disclose the filing and disposition of arbitrations as well as financial events. It was determined that the firm willfully neglected to disclose or timely disclose customer arbitrations and their dispositions involving its executive officers. The undisclosed arbitration-related information was considered material and should have been disclosed on the Forms U4. On April 19, 2023, the firm appealed the decision to the NAC, and the sanctions are currently pending review, not yet in effect.
*Above are only some of the regulatory disciplinary actions filed against Spartan Capital Securities by FINRA. NASSA and other state securities regulator investigations and enforcement actions account for another 8 BrokerCheck disclosures.
Spartan Capital Securities Customer Complaints
There have been scores of customer complaints filed against Spartan Capital Securities stockbrokers and investment advisors over the years. We have launched many investigations of current and former Spartan Capital Securities advisors:
[Insert BBB List]
If you have lost money investing with any of these Spartan Capital Securities advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims.
Did Spartan Capital Securities Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Spartan Capital Securities is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Spartan Capital Securities without representation with an attorney about their complaints and have their complaints denied.
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
Consult With An Attorney Who Recovers Investment Losses Caused By Spartan Capital Securities Today
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 45 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has recovered more than $175 million on behalf of investors and has extensive experience with Spartan Capital Securities cases. Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
