Victim of Financial Fraud? Call Now

Dispute Names John Palma in Allegations of Unauthorized Trading

May 3, 2023 Excessive Trading

John Palma (CRD #: 6848651), a broker registered with Spartan Capital Securities, is involved in a pending dispute, according to his BrokerCheck record, accessed on April 25, 2023. Read on to learn more about his alleged conduct as a broker.

Pending Dispute

On March 23, 2023, John Palma was named in a dispute filed by 36 investors alleging negligence, unauthorized trading, and excessive trading and commissions, as well as other violations of the suitability rule. The clients seek $799,490 in damages in this pending dispute.

FINRA Rule 3260

FINRA Rule 3260 requires brokers to receive written authorization from their clients before engaging in discretionary trading. The firm must also approve an account before this trading can occur.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. An investor’s profile includes information about their tax status, financial goals, and age.

Investors who feel their losses were caused by unsuitable investment recommendations may be able to recover their funds through FINRA arbitration.

What is broker negligence?

Many types of broker misconduct may qualify as negligence. Typical examples include unsuitable investment recommendations, unauthorized trading, and misrepresentations or omissions of material fact.

Investors who feel their losses are the result of broker negligence may be able to recover their funds by pursuing FINRA arbitration

Background Information

John Palma has passed the following exams:

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

John Palma is a registered broker in 49 states and the District of Columbia.

He has also worked for SW Financial (CRD#:145012) and 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 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.