Securities Arbitration Investment Fraud Lawyers » Misappropriation of Funds » Investors Bring Securities Arbitration Against Spartan Capital For Churning

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Nicholas James Schiano of New York, New York, a stockbroker currently registered with Spartan Capital Securities LLC, is the subject of a customer initiated investment related FINRA securities arbitration claim where the customer sought $350,343.10 in damages founded on accusations that the customer’s account was churned and that unauthorized trades were made by Schiano during the time that he was associated with Spartan Capital Management LLC. Financial Industry Regulatory Authority (FINRA) Arbitration No. 21-02950 (December 10, 2021). The claim also alleges misrepresentations relating to private placements and stock trading. Spartan Capital Management is also accused of breach of fiduciary duty and failure to supervise, resulting in the customer’s losses.

FINRA Public Disclosure reveals that Schiano has been identified in six more customer initiated investment related disputes concerning allegations of his wrongdoing while employed by securities broker dealers, including defunct Legend Securities and Worden Capital Management, as well as Spartan Capital Securities LLC. On January 3, 2019, a customer initiated investment related arbitration claim concerning Schiano’s conduct was settled for $35,000.00 in damages based upon accusations of unsuitable trading by Schiano at Legend Securities concerning common and preferred stocks and over-the-counter equities. FINRA Arbitration No. 17-02149 (January 3, 2019).

Schiano is also referenced in a customer initiated investment related arbitration claim which was resolved for $32,500.00 in damages supported by allegations of negligence and misrepresentation by Schiano when he was registered with Legend Securities. FINRA Arbitration No. 19-00916 (October 7, 2019). The claim also contains accusations of breach of fiduciary duty and misrepresentation relating to Schiano’s stock trades.

On January 28, 2020, another customer filed an investment related arbitration claim involving Schiano’s activities in which the customer requested $241,727.00 in damages founded on allegations that unsuitable recommendations and misrepresentations were made by Schiano while he was employed by Spartan Capital Securities. FINRA Arbitration No. 19-03740 (January 28, 2020).

Schiano is identified in a different customer initiated investment related arbitration claim which was settled for $7,499.99 in damages based upon accusations of excessive trading by Schiano at Legend Securities. FINRA Arbitration No. 20-01325 (August 14, 2020). According to the claim, the customer’s account had been over-concentrated in investments, resulting in damages to the customer. The claim also alleges unsuitability.

On November 19, 2020, another customer filed an investment related arbitration claim regarding Schiano’s conduct where the customer sought $414,744.00 in damages supported by allegations of omissions, misrepresentations, breach of contract, and breach of fiduciary duty relating to Schiano’s common and preferred stock and over-the-counter equity transactions at Worden Capital Management. FINRA Arbitration No. 20-00801. The claim alleges that the customer’s account had been churned and unsuitably traded between November of 2016 and August of 2017.

Schiano is the subject of another customer initiated investment related arbitration claim which was resolved for $5,000.00 in damages founded on accusations that Schiano churned the customer’s account and charged excessive commissions on stock trades at Worden Capital Management. FINRA Arbitration No. 21-00915 (September 16, 2021). The claim also alleges that Schiano provided unsuitable investment recommendations to the customer and had breached a fiduciary duty.

Schiano was associated with Worden Capital Management between November 4, 2016, and September 7, 2017. He has been registered with Spartan Capital Securities LLC since August 15, 2017.