Thomas James Baumann, of New York, New York, a stockbroker previously registered with Spartan Capital Securities LLC, is the subject of an enforcement action initiated by the Financial Industry Regulatory Authority (FINRA), where the regulator is seeking sanctions against Baumann based upon allegations that Baumann failed to comply with an investigation into allegations of his unauthorized trading. Department of Enforcement v. Thomas J. Bauman Disciplinary Proceeding No. 2018056490310 (April 10, 2024).
According to the Complaint, FINRA launched an investigation into Baumann’s conduct while he was associated with Spartan Capital Securities LLC. The investigation focused on whether Baumann engaged in unauthorized trading in the account of a customer between May of 2021 and January of 2022. As part of its investigation, FINRA asked Baumann to provide documents and information under FINRA Rule 8210 including evidence of communications with the customer and details regarding trading authorizations.
The Complaint alleged that Baumann’s failure to respond to FINRA’s requests began when he did not reply to the initial demand for information, which was due by August 10, 2023. Despite multiple attempts to deliver this request to both his registered and new addresses, and via his personal email, Baumann allegedly did not produce any of the requested information or documents. This lack of cooperation purportedly continued when Baumann also failed to respond to a subsequent request by the set deadline of September 6, 2023.
According to the Complaint, the absence of a response from Baumann affected FINRA’s ability to investigate the allegations of unauthorized trading. According to FINRA, Baumann violated FINRA Rules 2010 and 8210, which requires stockbroker cooperation with regulatory requests.
FINRA’s Department of Enforcement requested that the Hearing Panel make formal findings of Baumann’s misconduct, impose appropriate sanctions, and charge him with the costs of these proceedings.
FINRA Public Disclosure shows that Baumann is referenced in six customer initiated investment related disputes concerning Baumann’s conduct while associated with securities broker dealers. On March 12, 2013, a customer filed an investment related complaint involving Baumann’s conduct in which the customer requested $11,244.23 in damages based upon allegations that Baumann made misrepresentations of material fact in connection with the sale of stocks during the time that Baumann was associated with Rockwell Global Capital LLC.
On October 4, 2016, a customer filed an investment related complaint involving Baumann’s conduct in which the customer requested $30,000.47 in damages based upon allegations that Baumann used margin without authorization for equity transactions when Baumann was associated with Spartan Capital Securities LLC.
Baumann is also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $55,000.00 in damages based upon allegations that Baumann made misrepresentations of material fact, engaged in unsuitable trading, churned accounts, and breached his fiduciary duties in connection with the sale of stocks. FINRA Arbitration No. 18-03407 (December 16, 2021).
On February 22, 2022, a customer initiated investment related FINRA securities arbitration claim involving Baumann’s conduct was settled for $18,000.00 in damages based upon allegations that Baumann made misrepresentations of material fact and unsuitable recommendations. FINRA Arbitration No. 19-03740.
Baumann is also referenced in a securities arbitration claim that was settled for $9,999.99 in damages based upon allegations that Baumann was negligent, engaged in unsuitable and unauthorized trading, made misrepresentations of material fact, breached his fiduciary duties, and breached a contract in connection with the sale of stocks. FINRA Arbitration No. 20-01004 (October 27, 2020).
On May 12, 2022, a customer filed an investment related complaint requesting $24,000.00 in damages based upon alleged unauthorized trading in common and preferred stocks by Baumann in 2021. That complaint was closed with no further action taken by the customer.
Baumann was associated with Spartan Capital Securities LLC in New York, New York from January 22, 2013, to March 2, 2022.
