National investment loss lawyers KlaymanToskes reports broker Murat Kartal (CRD# 3046373) of Spartan Capital Securities has been suspended from acting as a broker or associating with a broker-dealer firm by the Financial Industry Regulatory Authority (“FINRA”).
FINRA’s decision comes after Kartal allegedly excessively traded a senior customer’s account in violation of FINRA Rules 2111 and 2010. According to FINRA BrokerCheck, Murat Kartal a/k/a Marc Kartal was previously registered as a broker with Spartan Capital Securities from 2017 to 2022 in New York, NY.
Investors that suffered losses with Murat Kartal may be entitled to a financial recovery. Contact Lawrence L. Klayman, Esq. immediately at (888) 997-9956 or lawrence@klaymantoskes.com to discuss your recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
On June 17, 2023, FINRA’s Department of Enforcement entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with Murat Kartal, disclosing that Kartal consented to sanctions of a ten-month suspension from associating with any FINRA member in all capacities.
According to the AWC, the matter originated from FINRA’s 2018 cycle exam of Spartan Capital. FINRA found that from August 2017 through August 2018, Kartal allegedly engaged in excessive trading in a senior customer’s account, resulting in a high turnover rate, a high annualized cost-to-equity ratio, and significant losses in the customer’s account.
FINRA’s investigation revealed that Kartal effected 150 transactions in his customer’s account, resulting in an annualized turnover rate of 49.36 and an annualized cost-to-equity ratio of 197 percent. Further, the AWC states that “Kartal’s trading in the customer’s account generated total trading costs of $206,667, including $189,446 in commissions, and caused $51,959 in realized losses.”
Murat Kartal exercised de facto control over his customer’s account, meaning that the client routinely followed his advice and recommendations to engage in high frequency trading, according to the AWC.
According to FINRA Rule 2111 (Suitability) and Supplementary Material under 2111.05(c), “Quantitative suitability requires a member or associated person who has actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions, even if suitable when viewed in isolation, are not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile, as delineated in Rule 2111(a).”
A violation of FINRA Rule 2111 also constitutes a violation of FINRA Rule 2010, which requires associated persons to “observe high standards of commercial honor and just and equitable principles of trade” in the conduct of their business.
According to FINRA, brokerage firms such as Spartan Capital are responsible for the supervision of all of the activities of their registered brokers/financial 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.
Investors that suffered losses with Murat Kartal may have recovery options. Contact attorney Lawrence L. Klayman, Esq., to discuss your legal options at 888-997-9956 or by email at lklayman@klaymantoskes.com. 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
lawrence@klaymantoskes.com
www.klaymantoskes.com