Securities Lawyers Blog
According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker James Pecoraro (Pecoraro), associated with Spartan Capital Securities, LLC (Spartan Capital) has been subject to at least 11 customer complaint, six regulatory actions, and one judgement or liens during his career. Some of the complaints against Pecoraro concern allegations of high frequency trading activity also referred to as churning or excessive trading among other securities laws violations.
In August 2022, FINRA found Pecoraro consented to sanctions and findings that he excessively traded in customers’ accounts. FINRA found that Pecoraro recommended a pattern of high-cost and high-velocity trading in the customers’ accounts. FINRA alleged that Pecoraro’s customers routinely followed his recommendations and exercised de facto control over their accounts. The findings state that Pecoraro effected a total of 325 trades resulting in annual turnover rates ranging from 13.47 to 57.97 and annualized cost-to-equity ratios ranging from 57.58 percent to 175.19 percent. FINRA found that Pecoraro’s trading was excessive and unsuitable for the customers’ investment profiles and the customers suffered losses of $166,018, total trading costs of $184,053, and commissions of $165,437.