Core Insights - A New York-based brokerage firm, Spartan Capital Securities, is facing a FINRA complaint for allegedly failing to address significant issues of churning by its representatives, which generated approximately one-third of the firm's total revenue and affected 114 accounts, leading to millions in investment losses [1][3][4] Company Overview - Spartan Capital Securities was established in 2008 and is registered with FINRA, employing around 80 registered representatives from its headquarters in New York City and two branch offices on Long Island [2] Allegations of Misconduct - The FINRA complaint indicates that from 2018 to April 2022, Spartan's representatives excessively traded in 114 accounts, with 35 accounts identified as "churned," where excessive buying and selling were conducted to increase commissions. The cost-to-equity ratios for these accounts ranged from approximately 16% to 491% [3] - Following the implementation of the SEC's Regulation Best Interest in June 2020, Spartan excessively traded in 92 retail accounts, many of which were churned, resulting in nearly $6 million in total losses [4] Hiring Practices - FINRA reported that Spartan routinely hired representatives with prior customer complaints, regulatory investigations, and financial difficulties, including several who had filed for bankruptcy while employed at the firm [5] Specific Cases - One representative named in the complaint, James Pecoraro, had a history of regulatory issues, including a three-year suspension in Colorado and multiple suspensions by FINRA for excessive trading. Despite these issues, he engaged in excessive trading in eight customer accounts, churning two of them, including the account of a 72-year-old client [6][7]