Tory A. Duggins of New York, New York, a stockbroker registered with Spartan Capital Securities LLC, has been suspended for eighteen months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Duggins engaged in excessive trading and failed to report a customer complaint. Letter of Acceptance, Waiver, and Consent No. 2018056490309 (January 19, 2024).
According to the AWC, Duggins engaged in excessive trading in eight customer accounts from December 2016 to April 2022. This trading resulted in high cost-to-equity ratios and turnover rates, leading to significant losses for the customers. For example, one account saw a 93 percent annualized cost-to-equity ratio and a 20.55 turnover rate, incurring over $32,000.00 in trading costs and nearly $20,000.00 in losses. Another customer account experienced a 59 percent cost-to-equity ratio and a 14.82 turnover rate, with over $123,000.00 in trading costs and approximately $93,000.00 in losses.
The AWC also stated that Duggins did not report a customer complaint on his Form U4. FINRA Rule 1122 prohibits submitting misleading or incomplete customer complaint information to FINRA or failing to update this information. In October of 2021, a customer emailed Duggins to complain about excessive trading in their account and demanded $17,500.00 in compensation. Duggins read this email but did not inform Spartan’s compliance department as required by the securities broker dealer’s policy. He also failed to update his Form U4 to include this complaint from the customer. Therefore, he violated FINRA’s By-Laws and Rules 2010 and 1122.
FINRA Public Disclosure shows that Duggins has been identified in four customer initiated investment related disputes containing allegations of his misconduct while employed with securities broker dealers. On November 13, 2012, a customer initiated investment related complaint involving Duggins was settled for $21,500.00 in damages based upon allegations that Duggins engaged in unauthorized trading in over-the-counter equities and stocks when Duggins was associated with VFinance Investments Inc.
Duggins is also referenced in a customer initiated investment related complaint filed on February 13, 2012, in which the customer alleged excessive trading, excessive commissions, and unauthorized trading in stocks. The complaint closed on February 18, 2012, without further action taken by the customer.
On January 23, 2012, another customer initiated investment related complaint involving Duggins’s conduct was settled for $9,000.00 in damages based upon allegations of excessive commissions in connection with the sale of over-the-counter equities and stocks during the time that Duggins was associated with VFinance Investments.
Duggins was associated with Spartan Capital Securities LLC in New York, New York, from February 29, 2016, to January 31, 2024. Since 2004, Duggins has been associated with four different broker dealers which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
