Thomas James Baumann, formerly registered with Spartan Capital Securities LLC in New York, was barred by Financial Industry Regulatory Authority (FINRA) on October 15, 2024. This decision resulted from Baumann’s failure to provide documents and information requested during an investigation into potentially unauthorized and excessive trading in customer accounts. Financial Industry Regulatory Authority Department of Enforcement v. Thomas J. Baumann, Disciplinary Proceeding No. 2018056490310.
According to the decision, Baumann initially participated in three on-the-record interviews. However, after his employer amended a Form U5 to disclose potentially unauthorized trading in another customer’s account, Baumann failed to respond to subsequent requests. FINRA sought Baumann’s communications with the customer to determine whether his actions were unauthorized. His refusal to comply obstructed the investigation, making the bar effective as of October 15, 2024.
Baumann is also the subject of multiple customer disputes. FINRA Public Disclosure shows that on March 30, 2020, a customer filed an FINRA securities arbitration claim alleging unsuitable and unauthorized investments, misrepresentation, negligence, breach of contract, and breach of fiduciary duty during 2018 to 2019. The customer sought $42,013.24 in damages, and the claim was settled on October 27, 2020, for $9,999.99. Baumann denied the allegations but agreed to the settlement.
On January 28, 2020, another arbitration claim was filed alleging misrepresentation and unsuitable recommendations, with the customer requesting $767,545.00 in damages. The matter was settled on February 22, 2022, for $18,000.00.
In a separate case filed on September 27, 2018, multiple customers alleged churning, unsuitable transactions, misrepresentation, and breach of fiduciary duty, seeking $6,645,956.00 in damages. The dispute was settled on December 16, 2021, for $55,000.00. Baumann denied the claims.
Additionally, on May 12, 2022, a complaint alleged unauthorized trading between June 2021 and December 2021, with the customer seeking $24,000.00 in damages. The securities broker dealer denied the allegations, and the case was closed with no action on February 7, 2023. In another matter, on October 4, 2016, a customer accused Baumann of unauthorized use of margin. After reviewing the activity, the securities broker dealer stated that there was no wrongdoing and denied the complaint on December 2, 2016.
Baumann was registered with Spartan Capital Securities LLC in New York from January 22, 2013, to March 2, 2022.
