Tory Duggins, a stockbroker formerly associated with Spartan Capital Securities was barred by FINRA for failing to cooperate in connection with an inquiry regarding the excessive trading or churning of his customer accounts. Department of Enforcement v. Duggins Action No. 2025084815701.
According to the Complaint, Duggins failed to provide on-the-record testimony requested by FINRA as a part of its investigation into whether Duggins churned and excessively traded customer accounts. The complaint alleges that Duggins initially cooperated with the investigation, producing documents including financial statements in response to a request from FINRA. However, Duggins did not appear for testimony in three instances, nor did he contact FINRA to reschedule his testimony. The testimony requested of Duggins was material to FINRA’s investigation and his refusal to appear for testimony impeded its investigation into his potential misconduct.
Without admitting or denying the findings, Duggins consented to the sanction and to the entry of findings that he willfully violated the Best Interest Obligation under Rule 15l-1 of the Exchange Act (Regulation BI) by recommending a series of excessive trades to customers, some of whom were seniors. The findings stated that Duggins’ customers relied on his advice and routinely followed his recommendations and, as a result, he exercised de facto control over the customers’ accounts. Duggins’ trading resulted in high cost-to-equity ratios and turnover rates that were well above the traditional guideposts of 20 percent and six, respectively, as well as significant losses.
Specifically, Duggins’ trading in the customers’ accounts generated total trading costs of $444,176, including $343,416 in commissions, and caused $235,494 in total realized losses. Duggins’ trading was excessive, unsuitable, and not in the best interest of the customers given their investment profiles. The findings also stated that Duggins willfully failed to report a written customer complaint alleging a sales practice violation on his Form U4. A customer sent Duggins an email complaining that he excessively traded the customer’s account and seeking $17,500 in compensatory damages. Duggins received and read the email but did not forward the customer complaint to his member firm’s compliance department as required by the firm’s policies.
FINRA Public Disclosure shows that in addition to six previously unsatisfied liens and judgments against him, and several customer complaints, Duggins has been associated with ten securities broker-dealers, eight of which have been expelled from FINRA for the violation of the federal securities laws, self-regulatory rules or are otherwise defunct.
The Guiliano Law Group, P.C.
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