Arthur Bruce McQuaide of Garden City, New York, a stockbroker registered with Spartan Capital Securities, LLC, has been suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because McQuaide engaged in churning or excessive trading in his customer accounts during the time that he was associated with Spartan Capital Securities. Letter of Acceptance, Waiver, and Consent No. 2018056490308 (December 7, 2023).
According to the AWC, between March of 2016 and January of 2020, McQuaide excessively traded in two customer accounts. This trading activity was quantitatively unsuitable given the customers’ investment profiles, resulting in high turnover rates and cost-to-equity ratios. Specifically, Customer A’s account, opened in March 2016, experienced 214 transactions leading to an annualized turnover rate of 14.73 and a cost-to-equity ratio of 52 percent. The customer’s account experienced $169,260.00 in realized losses, as the customer paid $137,250.00 in commissions and $171,656.00 in trading costs.
Similarly, Customer B’s account, opened in the same period, experienced 43 transactions with an annualized turnover rate of 9.37 and a cost-to-equity ratio of 42 percent. These transactions led to $21,579.00 in realized losses, as the customer paid $23,110.00 in commissions and $30,028.00 in trading costs.
McQuaide violated FINRA Rules 2010 and 2111.
Public Disclosure shows that on February 22, 2022, a customer initiated investment related FINRA securities arbitration claim about McQuaide was settled for $5,000.00 in damages based upon allegations that McQuaide made misrepresentations of material fact and unsuitable investment recommendations during his association with Spartan Capital Securities LLC. FINRA Arbitration No. 19-03740.
McQuaide was associated with Spartan Capital Securities LLC in Garden City, New York, from January 26, 2016, to December 22, 2022.
