Kostas Tsamos, also known as Gus Tsamos, a former stockbroker with Spartan Capital Securities LLC in Garden City, New York, on October 8, 2024, was the subject of a Financial Industry Regulatory Authority (FINRA) imposed 17-month suspension on Tsamos for willfully violating Regulation Best Interest under Rule 15l-1(a)(1) of the Securities Exchange Act of 1934 (Reg BI). FINRA found that Tsamos engaged in excessive and unsuitable trading in six customer accounts, including accounts belonging to four senior customers. Tsamos was found to have exercised control over these accounts. Letter of Acceptance, Waiver, and Consent (AWC) No. 2018056490316.
The trading activity led to total costs of $958,948, including $849,576 in commissions, and caused realized losses exceeding $1.03 million. FINRA determined that Tsamos’ actions were not in the customers’ best interests and caused significant financial harm. His suspension runs from October 21, 2024, to March 20, 2026.
In addition to FINRA’s sanctions, on January 28, 2020, a customer filed a FINRA securities arbitration claim alleging that Tsamos made misrepresentations and unsuitable recommendations while he was associated with Spartan Capital Securities. The customer sought $668,000 in damages. On February 22, 2022, the dispute was resolved through a settlement in which Spartan Capital Securities paid $75,000 to the customer.
Tsamos was last registered with Spartan Capital Securities LLC, where he was employed from January 28, 2016, until December 22, 2022, in Garden City, New York.
