Kyle Infinite Manning, also known as Kyle Henry Laurie Schmidt, formerly a registered stockbroker with Spartan Capital Securities LLC in Garden City, New York, was the subject of a Financial Industry Regulatory Authority (FINRA) regulatory action initiated on October 8, 2024. Manning agreed to a 17-month suspension after findings revealed he excessively traded accounts belonging to three senior customers. This caused customers to experience financial harm through costs and losses, according to the regulator. Letter of Acceptance, Waiver, and Consent (AWC) No. 2018056490317.
Between February 2016 and April 2022, Manning exercised control over three senior customers’ accounts, leading to a pattern of excessive and inappropriate trading. The findings highlight significant financial impact on these accounts. For Customer A, a 67-year-old semi-retired business owner, Manning recommended 866 transactions. This resulted in an annualized turnover rate of 34, a cost-to-equity ratio of 101%, trading costs of $610,769 (including $545,234 in commissions), and $313,220 in realized losses.
Customer B, a 62-year-old self-employed business owner, experienced 618 transactions, an annualized turnover rate of 40, a cost-to-equity ratio of 95%, $658,190 in trading costs (including $611,464 in commissions), and $597,759 in realized losses. Customer C, an 81-year-old semi-retired business owner, saw 483 transactions, an annualized turnover rate of 22, a cost-to-equity ratio of 81%, $357,018 in trading costs (including $321,195 in commissions), and $190,298 in realized losses.
The suspension is effective from October 21, 2024, through March 20, 2026.
A FINRA securities arbitration claim was filed on January 28, 2020, against Spartan Capital Securities LLC. The customer alleged misrepresentation and unsuitable recommendations, seeking $668,000 in damages. On February 22, 2022, the dispute was settled, with Spartan Capital Securities LLC paying $75,000 to the customer. FINRA Arbitration No. 19-03740.
Manning was associated with Spartan Capital Securities LLC from January 29, 2016, until December 22, 2022. He is no longer registered with FINRA.
