Richard Joseph Perlongo, based in New York and registered with Spartan Capital Securities LLC, has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity for engaging in excessive and unsuitable trading in a customer’s account. Letter of Acceptance, Waiver, and Consent No. 2018056490324 (March 6, 2025).
According to the AWC, FINRA’s disciplinary action followed a routine regulatory examination of Spartan Capital Securities. During this review, FINRA identified that between October 2018 and September 2019, Perlongo heavily influenced a 59-year-old customer’s investment account, as the customer consistently followed his investment recommendations. Over the course of that year, Perlongo suggested 27 trades, many of which involved frequent selling and buying of the same securities regardless of changes in price.
This pattern of activity caused the account to experience an annual turnover rate of 19 and an annual cost-to-equity ratio of about 71 percent—far above the thresholds that typically indicate excessive trading. As a result, the customer paid nearly $19,000.00 in commissions and sustained more than $70,000.00 in realized losses.
FINRA concluded that Perlongo’s actions did not align with the customer’s investment profile. The regulator found that he violated FINRA Rule 2111, which requires investment recommendations to be appropriate for each customer, and Rule 2010, which requires stockbrokers to uphold high ethical standards.
Perlongo has been associated with Spartan Capital Securities LLC in New York, New York since August 15, 2017.
