Ian Phillip Lowrey of Brandon, South Dakota, a stockbroker formerly registered with Spartan Capital Securities LLC, has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that he executed excessive trades in customer accounts resulting in losses to Spartan Capital Securities customers. Letter of Acceptance, Waiver, and Consent No. 2018056490302 (May 10, 2022).
According to the AWC, between April 2017 and October 2019, while Lowrey was employed by Spartan Capital Securities, two customers’ accounts were excessively traded by him. The AWC states that between April 2017 and October 2019, quantitatively unsuitable trades were made by the stockbroker, given the frequency of his trades. FINRA states that customers usually followed his recommendations, so Lowrey controlled their accounts.
Between April 2017 and October 2019, 56 trades were made by Lowrey in Customer A’s account. The customer’s account contained a cost-to-equity ratio of 49 percent and a turnover rate of 11.09. The customer experienced $23,680.00 in trading costs and commissions. They realized losses of $38,891.00, according to the AWC.
The AWC also states that from November 2017 to March 2019, 48 trades were made by Lowrey in Customer B’s account. The customer’s account experienced a 162 percent annualized cost-to-equity ratio and a 26.39 annualized turnover rate. This customer realized $64,362.00 in losses and $31,356.00 in commissions and trading costs.
The regulator found that Lowrey made excessive and unsuitable trades, as the transactions were not aligned with the customers’ investment profiles. Lowrey violated FINRA Rules 2010 and 2111.
Lowrey was registered with Spartan Capital Securities between November 22, 2016, and January 29, 2020. He was associated with Wynston Hill Capital LLC between May 15, 2020, and June 11, 2020.
