Are you new to business investing and also worried when hear about Spartan Capital Securities lawsuit? So you don’t need to worry, here we have a comprehensive detail of Spartan Capital Securities Lawsuit.
Spartan Capital Securities is a brokerage firm that has been prosecuted for engaging in a variety of fraudulent practices, including improper investment recommendations, churning, omission of material facts, and forgery. As a result, many investors who have invested with Spartan Capital Securities have suffered significant financial losses.
Before going into the details of the Lawsuit, you should be well aware of Spartan Capital Securities and the owner of Expert Capital Securities. Let’s start!
Spartan Capital Securities Overview
Spartan Capital Securities is a financial services firm based in New York City. They provide a variety of investment services to both individual and institutional clients. Their offerings include trading in equities, options, fixed-income securities, and investment banking services. The firm focuses on providing personalized investment solutions tailored to the needs of their clients. Till the date this company is owned by John Dennis Lowry.
John Dennis Lowry, New York, has been named as a party in a pending FINRA Disciplinary Proceeding, according to his FINRA Broker Report. Mr. John’s report also reveals eleven prior customer complaints against Mr. John and his firm.
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Spartan Capital Securities Lawsuit
On October 19, 2021, the Financial Industry Regulatory Authority (FINRA) filed a disciplinary complaint against John Dennis Lowry and Spartan Capital Securities, LLC. The complaint alleges that Spartan violated multiple FINRA rules by failing to disclose or timely disclose numerous reportable events involving its representatives, such as customer complaints, arbitration claims, bankruptcies, and unsatisfied liens and judgments.
According to FINRA, Lowry, who became Spartan’s CEO in 2015 and is the sole owner of the company through a holding company, is implicated in these violations.
FINRA’s investigation revealed that Spartan failed to file 115 out of 152 required amendments to its regulatory forms, resulting in the non-disclosure or late disclosure of 162 customer arbitration filings and resolutions involving its registered representatives. These late filings were significantly overdue, with an average delay of 216 days, and one delinquency reaching 1,121 days. Moreover, FINRA found that nearly all of Spartan’s 60 failures to file an amendment involved the failure to disclose a customer arbitration against an executive officer or branch manager.
Customer Complaints Against John Dennis Lowry
John Dennis Lowry’s FINRA Broker Check report indicates that there have been eleven customer complaints filed against him since 2009, with six of them occurring in the past four years. These complaints allege misconduct on Lowry’s part, including breach of fiduciary duty, churning, unsuitable investment recommendations, misrepresentation, unauthorized trading, and failure to supervise.
In two FINRA arbitrations against Lowry and Spartan, customers were awarded a total of $241,842. Additionally, two other claims were settled for $335,000. Three complaints against Mr. Lowry, including the FINRA regulatory action, are still pending.
John Dennis Lowry Failure
John Dennis Lowry, the CEO of Spartan Capital Securities, faced allegations of failures related to the firm’s regulatory compliance. These included failures to disclose or timely disclose numerous reportable events involving Spartan’s representatives, such as customer complaints, arbitration claims, bankruptcies, and unsatisfied liens and judgments. Additionally, FINRA found that Spartan failed to file a significant number of required amendments to its regulatory forms, resulting in the non-disclosure or late disclosure of customer arbitration filings and resolutions. These regulatory lapses led to disciplinary action by FINRA.
Wrapping Up
As CEO of Spartan Capital Securities, John Dennis Lowry shoulders multifaceted responsibilities including leadership, compliance oversight to ensure adherence to regulatory standards, strategic business development initiatives aimed at fostering growth, effective risk management to safeguard the firm’s interests, cultivation and maintenance of client relationships, diligent financial oversight encompassing budgeting and financial reporting, upholding rigorous standards of corporate governance and ethical conduct, and serving as the public face of the firm in engagements with regulators, industry counterparts, and other stakeholders.
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