Spartan Capital Stockbroker Investigated For Unauthorized Trading

finra - Spartan Capital Stockbroker Investigated For Unauthorized Trading

James William Flower (also known as Jim Flower) of Garden City New York a stockbroker currently registered with Spartan Capital Securities is the subject of an investigation initiated by Financial Industry Regulatory Authority (FINRA) on October 15, 2019.

According to Public Disclosure, the investigation concerns allegations that the stockbroker recommended excessive trades to a customer. FINRA indicated that Flower’s recommendations were excessive and unsuitable in violation of FINRA Rules 2010 and 2111. Trades were allegedly effected in a customer’s account by the stockbroker without the customer’s knowledge or consent when Flower was associated with Spartan Capital in violation of FINRA Rule 2010.

The regulator also indicated that Flower caused the securities broker dealer to maintain false records or books by mismarking trade tickets. On January 15, 2020, FINRA stated that its Department of Enforcement should also take disciplinary measures against Flower for committing fraud in violation of Securities Exchange Act of 1934 Section 10(b) and FINRA Rules 2010 and 2020.

FINRA Public Disclosure confirms that Flower has been suspended for three months from associating with any FINRA member in any capacity founded on accusations that the stockbroker neglected to have an adequate basis to conclude that his investment recommendations concerning volatile exchange traded notes had been suitable for customers of Global Arena Capital Corp. Letter of Acceptance Waiver and Consent No. 2014040644001 (June 12, 2017).

FINRA Public Disclosure also reveals that Flower has been referenced in four customer initiated investment related disputes concerning accusations of his improprieties when the stockbroker was associated with securities broker dealers including Laidlaw Company (UK) Ltd, Prestige Financial Center Inc., Global Arena Capital Corp. and JP Turner Company LLC.

On November 12, 2015, a customer initiated investment related complaint in reference to Flower’s conduct was resolved for $45,000.00 in damages based upon accusations that common or preferred stocks and over the counter equities transactions were unsuitable for the customer and that the customer’s investment account had been churned when Flower was associated with Laidlaw Company.

On August 1, 2016, a customer filed an investment related arbitration claim pertaining to Flower’s conduct in which the customer requested $250,000.00 in damages. According to the FINRA Arbitration, the customer’s account was churned when Flower had been employed by Global Arena Capital and Laidlaw. Margin was allegedly used excessively by the stockbroker to effect securities transactions in the customer’s account.

The claim also alleges that common or preferred stock and over the counter equity trades facilitated in the customer’s account by the stockbroker failed to be suitable and that the customer’s account was over concentrated in bad investments resulting in unwarranted losses. FINRA Arbitration No. 15-02278.

Flower has been registered with Spartan Capital since June 13, 2019. He has been associated with eight different securities broker dealers who have been expelled by securities regulators for violation of federal securities laws or who are otherwise defunct.