John Michael Palma, of New York, New York, a stockbroker registered with Worden Capital Management LLC, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member because Palma refused to provide documents and information requested by FINRA in the course of an investigation. Letter of Acceptance, Waiver, and Consent No. 2019060753511 (March 25, 2025).
On February 7, 2025, FINRA sent Palma a request to produce information and documents as part of its examination. According to a phone call between Palma’s lawyer and FINRA on March 7, 2025, Palma received the request but chose not to comply. His refusal to provide the requested materials constituted a violation of FINRA Rule 8210, which requires stockbrokers’ cooperation with regulatory inquiries, and also a violation of Rule 2010, which requires stockbrokers to uphold ethical standards in the securities industry.
FINRA Public Disclosure shows that Palma is referenced in three customer initiated investment related disputes concerning Palma’s conduct while associated with securities broker dealers. On December 7, 2021, a customer filed an investment related complaint involving Palma’s conduct in which the customer requested $50,000.00 in damages based upon allegations that Palma engaged in unauthorized trading in over-the-counter equities and stocks when Palma was associated with SW Financial. This complaint was closed without further action taken by the customer.
On August 23, 2024, a customer initiated investment related FINRA securities arbitration claim involving Palma’s conduct resulted in the customer being awarded $10,364,625.35 in compensatory damages because SW Financial was held liable for sales practice violations. FINRA Arbitration No. 22-02586. The Statement of Claim alleged that the stockbroker made unsuitable recommendations, breached his fiduciary duties, was negligent, failed to supervise certain representatives, and breached a contract while at SW Financial.
On March 11, 2024, a customer filed an investment related FINRA securities arbitration claim involving Palma’s conduct in which the customer requested $500,000.00 in damages based upon allegations that Palma engaged in excessive trading in connection with the sale of over-the-counter equities and stocks when Palma was associated with Spartan Capital Securities LLC. FINRA Arbitration No. 24-00308.
Palma was associated with SW Financial in New York, New York from December 10, 2019 to September 14, 2022. FINRA expelled the firm on May 12, 2023. Palma was associated with Spartan Capital Securities LLC in New York, New York from September 15, 2022 to March 17, 2025.
