National investment loss lawyers KlaymanToskes is investigating John Michael Palma (CRD# 6848651) of Spartan Capital Securities after the New York, NY-based stock broker was named in an investor complaint alleging nearly $800,000 in damages due to unsuitable and unauthorized investments, excessive trading/commissions and negligence.
Investors that suffered losses with John Michael Palma are encouraged to contact attorney Lawrence L. Klayman, Esq., for a free consultation at 888-997-9956 or by email at lklayman@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
According to FINRA BrokerCheck, John Palma was previously registered as a broker with SW Financial from 2019 to 2022 in New York, NY. He was also previously registered with Worden Capital Management, a firm that was expelled from the securities industry.
Palma’s most recent customer complaint was filed on March 3rd, 2023. The customer alleges $799,490 in damages to their SW Financial account due to unsuitable investment recommendations in equity, specifically common and preferred stock. The customer further alleges that Palma engaged in unauthorized trading and excessive trading, resulting in excessive commissions.
An additional customer complaint disclosed on Palma’s BrokerCheck record alleged that Palma engaged in unauthorized trading resulting in investor damages of $50,000. The complaint was denied by the firm.
“Excessive Trading” occurs when a registered financial professional recommends a high number of trades in a customer’s account, not for the customer’s benefit but instead to generate high commissions for the broker. “Churning” is an illegal practice which may occur when a broker executes excessive trades in order to generate greater commissions.
KlaymanToskes can help you determine whether an investment loss is the result of a financial brokerage firm and/or a financial advisor’s excessive trading or “churning.” Depending on your circumstances, you may be entitled to recover your losses through FINRA arbitration.
Review Your Account Information: Carefully review the information in your account documents. If you notice any inconsistencies between the information you provided your broker with, especially in regards to your income, investment objectives, and/or risk tolerance, you should contact your broker or brokerage firm as soon as possible.
Check Your Trade Confirmations and Account Statements: Investors should periodically review their trade confirmations and account statements for any discrepancies. If you notice any trades in your account that you did not approve of or seemingly excessive commission/fees, you should contact your broker or brokerage firm immediately.
Exercise Risk Management and Ask Questions: By remaining aware, investors may be able to prevent excessive trading or churning before it occurs. If you are not satisfied with your broker’s answers regarding any recommended trades, commission/fee charges on your account, or investment returns, you may want to consider escalating your concerns to a manager or to the firm’s compliance department.
If you have followed the guidelines above and still have concerns about your account, and/or believe unlawful or unethical activity may be taking place, contact KlaymanToskes for a free consultation to discuss your potential case. You may be entitled to a financial recovery through FINRA arbitration.
Contact attorney Lawrence L. Klayman, Esq., for a free consultation at 888-997-9956 or by email at lklayman@klaymantoskes.com to discuss recovery options and to learn more about the arbitration process. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com