National investment loss lawyers KlaymanToskes is investigating broker Joseph Desapio (CRD# 5837553) of Spartan Capital Securities, who has been suspended from acting as a broker by the Financial Industry Regulatory Authority (“FINRA”), following allegations that he that he willfully violated Exchange Act Rule 15l-1, Regulation BI, by recommending quantitatively unsuitable trades in accounts held by customers, one of whom was a senior.
According to FINRA’s investigation, on July 27, 2022, Spartan Capital filed a Uniform Termination Notice for Securities Industry Registration (Form U5), terminating Desapio’s registration through the firm. Spartan Capital reported that an arbitration had been filed against Desapio alleging “that applicant borrowed money and executed promissory note for funds from customer” and that the “[a]pplicant owes Firm $22,992.38.”
From June 2017 through June 2021, FINRA found that Desapio engaged in quantitatively unsuitable trading in four accounts of three customers. Desapio exercised de facto control over the three customers’ accounts and his trading resulted in high turnover rates and cost-to-equity ratios that were well above the traditional guideposts of six and 20 percent, respectively. Desapio’s trading in these customer accounts generated total trading costs of $136,023, including $111,798 in commissions, and caused $92,546 in realized losses.
Additionally, in September 2019, Desapio allegedly borrowed $20,000 from Customer A, with whom he had a prior personal non-familial relationship. Desapio did not provide prior notice to or obtain written approval from Spartan for the loan from Customer A, and therefore violated FINRA Rule 3240 and FINRA Rule 2010.
Investors that suffered losses with broker Joseph Desapio are encouraged to contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at lawrence@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national investment loss law firm that represents the interests of investors throughout the world who have suffered losses due to broker misconduct, investment fraud, and securities violations.
The articles linked below contain important information relating to KlaymanToskes’ investigation of broker Joseph Desapio:
If you suffered losses with broker Joseph Desapio, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.
The firm has helped recover over $600 million* for investors, and can help you determine if your loss is due to financial advisor misconduct, unsuitable investment advice, and/or other securities violations.
*Exclusive of attorneys fees and costs.
As an investor, there are a few signs that you should look out for if you believe you may have a claim against broker Joseph Desapio. These signs could potentially indicate broker misconduct, negligence, or investment fraud. Investors are encourage to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
According to FINRA, brokerage firms such as Spartan Capital Securities are responsible for the supervision of all of the activities of their registered brokers and investment advisors. Investors may be entitled to a financial recovery if their brokerage firm failed to supervise the representative managing their brokerage account, and/or if their broker/advisor made unsuitable investment recommendations.
Engaging the services of an experienced securities attorney to evaluate the specific circumstances of your case is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you suffered losses with broker Joseph Desapio, or have concerns regarding your investment portfolio at Spartan Capital Securities contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation to discuss recovery options.