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Marc Reda Of Spartan Capital Securities, LLC And Formerly With First Standard Financial Company And PHX Financial Has 12 Customer Complaints For Alleged Broker Misconduct

Who is Marc Reda of Spartan Capital Securities, LLC?

Marc Reda (CRD #2757330) who is currently registered with Spartan Capital Securities, LLC and located in New York, New York is a subject of one of our many securities industry sales practice abuse investigations. Prior to Spartan Capital Securities, LLC, Marc Reda was associated with First Standard Financial Company, PHX Financial and other investment advisory and brokerage firms with a history of customer complaints and securities industry regulatory problems.

Marc Reda Customer Complaints

Marc Reda has been the subject of 12 customer complaints that we know about, and one of those complaints was filed in the last year to recover investment losses. One arbitration award was entered against Spartan Capital Securities for Marc Reda’s alleged misconduct causing investors losses. Eight of Marc Reda’s 12 customer complaints were settled in favor of investors. Two of Marc Reda’s customers’ complaints were denied and, to date, the customers have not taken any further action. There is currently one pending customer complaint filed against Spartan Capital Securities, LLC for investment losses caused by Marc Reda’s alleged misconduct.

Marc Reda has had his own share of regulatory problems. He was sanctioned by FINRA and 2017 for allegedly exercising discretion, and customer’s accounts without written authorization from the customers and without having obtained his member firm’s approval to treat those accounts is discretionary. He also allegedly failed to disclose a federal tax lien filed against him in the amount of $575,101. Without admitting or denying the allegations Marc Reda consented to a suspension for 3 months and a $5000 fine.

Allegations Against Marc Reda

A sample of the allegations made in the FINRA reported arbitration claim settlements and/or pending complaints for investment losses are as follows:

  • Marc Reda’s alleged Breach of Fiduciary Duty, Unsuitable recommendations.
  • Client alleged that Marc Reda did not place two stop loss orders as agreed resulting in losses.
  • Client alleged Marc Reda’s unauthorized trading and breach of fiduciary duty.
  • Client contacted the firm and stated to the firm that certain transactions executed shortly after opening her account were unauthorized allegedly by Marc Reda.
  • Client stated in an email forwarded to compliance that there was failure by Marc Reda allegedly to follow instructions, unauthorized trades, poor communication and over concentration of investments in his accounts.
  • Customer claimed Marc Reda’s alleged unauthorized sale of Penn Octane shares.
  • Inappropriate management of customer account by Marc Reda allegedly at the time, while charging excessive commissions.
  • An email from customer was sent to Phoenix Financials’ operations department. The email stated to give a third party decision making authorization over customer’s account. It additionally alleged Marc Reda was trading without authorization.
  • Customer forwarded an email to his broker Marc Reda allegedly stating he did not authorize the purchase of ALRM which were purchased in two blocks of 5000 shares.
  • Marc Reda allegedly was a subject of the customer’s complaint against his member firm that asserted the following causes of action: unauthorized trading and churning.
  • The client alleged that Marc Reda sold a security in his account and purchased another security without authorization. The following day customer wrote a letter rescinding his complaint against Mr. Reda.
  • No time frame mentioned/associated with individual claimant in statement of claim (SOC). Allegations: alleging misrepresentation and unsuitable recommendations by Marc Reda.

Marc Reda Red Flags & Your Rights As An Investor

Of course, Marc Reda did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Marc Reda at Spartan Capital Securities, LLC, First Standard Financial Company, and PHX Financial on alert to review carefully the activity and performance of their accounts and question whether Marc Reda has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at Spartan Capital Securities, LLC, First Standard Financial Company, and PHX Financial also raises questions about the brokerage firms’ supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor.

File A Claim To Recover Your Investment Losses At Spartan Capital Securities, LLC Due To Marc Reda

If you have questions about Spartan Capital Securities, LLC, First Standard Financial Company, PHX Financial, and/or Marc Reda and the management or performance of your accounts, please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

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Robert Wayne Pearce

Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $170 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.

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