Joao Pinto Named in Dispute Alleging Churning

Joao Pinto (CRD #: 6298233), a broker registered with Spartan Capital Securities, is involved in a pending investor dispute, according to his BrokerCheck record, accessed on February 2, 2023. If you want to know more about his alleged conduct as a broker, keep reading.

Investor Dispute

On October 7, 2022, an investor filed a dispute naming Joao Pinto in allegations of negligence, failure to supervise, churning, and the misrepresentation and omission of information in November 2019. The client seeks $268,386 in damages in this pending dispute.

FINRA Rule 3110

Failure to supervise violates FINRA Rule 3110, which requires that firms establish systems of supervision over their employees to ensure their compliance with securities regulations. Among other things, firms must appoint supervisors and ensure that they have adequate training or experience.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. These profiles contain information about investors’ tax status, risk tolerance, and investment goals.

Excessive trading, also called churning, violates the need for quantitative suitability. Brokers’ total trading activity needs to fit the client’s profile as much as individual trades.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rule 2020

FINRA Rule 2020 bans the use of deceptive, manipulative, and otherwise fraudulent means of influencing the purchase or sale of securities. The misrepresentation or omission of material facts violates this rule.

What is broker negligence?

Brokers may act in many negligent ways, ranging from recommending unsuitable investments to executing unauthorized trades. Investors who feel their losses are the result of broker negligence may be able to recover their funds by pursuing FINRA arbitration.

Background Information

Joao Pinto has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

Joao Pinto is a registered broker in 19 states.

He has also worked for Benchmark Investments (CRD#:103792) and Newbridge Securities (CRD#:104065).

Kurta Law Can Help

If you worked with Joao Pinto and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.