National investment loss lawyers KlaymanToskes is investigating broker Michael Dugan (CRD# 2824966) of Spartan Capital Securities and Alexander Capital, L.P.
According to FINRA BrokerCheck, broker Michael Dugan has been suspended from acting as a broker by the Financial Industry Regulatory Authority (“FINRA”) in connection with FINRA’s findings that he recommended trades to retail customers that were excessive, unsuitable, and not in the customers’ best interests. Dugan violated Exchange Act Rule 15l-1(a)(1) and violated FINRA Rules 2111 and 2010.
Investors that suffered losses with broker Michael Dugan are encouraged to contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Financial advisor Michael Dugan, formerly of Spartan Capital Securities, has been suspended from acting as a broker by the Financial Industry Regulatory Authority (“FINRA”). FINRA’s findings disclosed that Dugan recommended to two retail customers a series of trades that were excessive, unsuitable, and not in the customers’ best interests. Dugan is suspended for seven months in all capacities.
FINRA found that in May 2017, Customer A, then a 60-year-old retiree, opened an account at Spartan with Dugan. The customer was reportedly a moderate-risk investor. Between May 2017 and November 2021, Dugan recommended 171 transactions in Customer A’s account resulting in an annualized turnover rate of 16 and an annualized cost-to-equity ratio of 66%. Dugan’s trading in Customer A’s account generated $118,905 in commissions and caused $63,111 in realized losses.
Furthermore, FINRA found that in July 2019, Customer B, then a 65-year-old business consultant, opened an account at Spartan with Dugan. The client’s investment objective was aggressive growth/aggressive income. Between July 2020 and April 2022, Dugan recommended 95 transactions in Customer B’s account resulting in an annualized turnover rate of 38 and an annualized cost-to-equity ratio of 63%. Dugan’s trading in Customer B’s account generated $24,312 in commissions and caused $153,661 in realized losses.
As an investor, there are a few signs that you should look out for if you believe you may have a claim against your financial advisor. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged 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.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances 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 Michael Dugan, or have concerns regarding your investment portfolio at Spartan Capital Securities, Alexander Capital, or with any other financial advisor or firm, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.