Marc Augustus Reda of New York New York a stockbroker formerly registered with Spartan Capital Securities LLC has been referenced in a Financial Industry Regulatory Authority (FINRA) investigation in which the regulator has made an initial determination for Reda to face disciplinary action supported by accusations of Reda effecting trades in customer accounts on an unauthorized and excessive basis. Case No. 20190635269 (June 15, 2020).
According to FINRA Public Disclosure, Reda could face disciplinary action for violating FINRA Rules 2010 as it relates to his alleged unauthorized trading, and FINRA Rules 1122 concerning his alleged failure to identify in his FINRA record that he has been accused by customers for effecting unauthorized trades.
Reda has been fined $5,000.00 and suspended for three months from associating with any FINRA member in any capacity based in part on findings that Reda effected trades on a discretionary basis in PHX Financial Inc. customer accounts without having written permission from his customers or PHX Financial. Letter of Acceptance Waiver and Consent No. 2016048486601 (June 2, 2017).
FINRA Public Disclosure confirms that Reda has been identified in twelve customer initiated investment related disputes containing allegations of his misconduct during the time that he was employed by Phoenix Financial Services, PHX Financial, Clark Street Capital and Spartan Capital. On July 13, 2016, a customer initiated investment related arbitration claim involving Reda’s activities was resolved for $26,000.00 in damages founded on accusations of unsuitable recommendations and breach of fiduciary duty by Reda in regard to equities transactions that were effected in the PHX Financial customer’s account. FINRA Arbitration No. 16-01461.
Reda is the subject of another customer initiated investment related written complaint which was settled for $45,000.00 in damages on August 31, 2017 based upon allegations that the customer had been charged excessive commissions by Reda on exchange traded funds and over-the-counter equities transactions. The claim also indicates that the customer’s account had been mismanaged by the stockbroker resulting in losses for the customer’s account.
Reda is the subject of another customer initiated investment related arbitration claim where the customer was awarded $15,381.44 in damages supported by Spartan Capital being found liable on the customer’s causes of action including churning of the customer’s investment account and unauthorized trading by the stockbroker. FINRA Arbitration No. 18-04117 (June 27, 2019).
On January 28, 2020, another customer filed an investment related arbitration claim involving Reda’s conduct in which the customer requested $72,026.00 in damages founded on accusations that Reda’s investment advice was unsuitable and that misrepresentations were made by the stockbroker as it pertained to the Spartan Capital customer’s investment affairs. FINRA Arbitration No. 19-03740.
Reda has been registered with Spartan Capital since May 12, 2016.