FINRA Bars John Palma for Alleged Refusal to Provide Information

John Palma (CRD #: 6848651), a broker formerly registered with Spartan Capital Securities, has been barred by FINRA, according to his BrokerCheck record, accessed on April 3, 2025. Keep reading to learn more about his alleged conduct as a broker.

Bar by FINRA

On March 25, 2025, John Palma consented to the entry of findings that he allegedly refused to provide information and documents requested by FINRA as part of an investigation.

According to a Letter of Acceptance, Waiver & Consent (AWC), FINRA allegedly began its investigation following a cycle examination of Worden Capital Management.

The AWC concluded that John Palma’s alleged refusal to provide information constituted a violation of FINRA Rules 8210 and 2010.

FINRA Rule 8210

FINRA Rule 8210 requires members to provide documents, information, and testimony upon request by FINRA.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

FINRA permanently barred John Palma on March 25, 2025. You can read the full AWC here.

Investor Disputes

On March 11, 2024, an investor alleged that John Palma engaged in excessive trading from February through August 2023. The client seeks $500,000 in damages in this pending dispute.

On October 10, 2022, John Palma was involved in a dispute filed against SW Financial. Investors alleged that the firm’s brokers used their accounts as “personal slush funds” by engaging in unsuitable trading. The investors further alleged negligence, breach of contract, unjust enrichment, and failure to supervise.

An arbitration award made SW Financial liable for $10.9 million in damages, plus interest. You can read the text of the award here.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. These profiles contain information such as an investor’s financial goals, age, risk tolerance, and tax status.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

FINRA Rule 2150

FINRA Rule 2150 prohibits the improper use of investors’ funds.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish systems of supervision to maintain their compliance with securities regulations. This includes appointing supervisors and providing them with Written Supervisory Procedures (WSPs).

What is broker negligence?

Broker misconduct can come in many forms, from unsuitable investment recommendations to unauthorized transactions.

Investors who believe their losses are the result of broker negligence may be able to recover their funds through FINRA arbitration.

Background Information

John Palma has passed the following exams:

• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Securities Agent State Law Examination – Series 63

In the past, he worked for the following firms:

• Spartan Capital Securities (CRD#:146251)
• SW Financial (CRD#:145012)
• Worden Capital Management (CRD#:148366)

Kurta Law Can Help

If you worked with John Palma 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 that 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.