Joseph Desapio Named in Allegations of Churning and Failure to Supervise

Joseph Desapio (CRD #: 5837553), a broker registered with Spartan Capital Securities, is involved in a pending investor dispute, according to his BrokerCheck record, accessed on June 30, 2022. If you have questions about Joseph Desapio’s conduct as a broker, read on.

Investor Dispute

On February 3, 2022, Joseph Desapio was named in a dispute alleging a failure to supervise. He also allegedly engaged in churning, negligence, and gross negligence, starting in approximately 2017 through 2019. This dispute is currently pending.

FINRA Rules 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. These profiles include information about investors’ age, risk tolerance, and financial goals.

• Investments can be unsuitable due to their high risk or lack of liquidity. Illiquid investments are intended to be held for a long period of time and tend to come with high fees for investors who try to cash out early.
• An excessive number of trades violates the requirement for quantitative suitability, which requires overall trading activity to be suitable for an investor’s goals. Churning also racks up fees and commissions that eat into an investor’s returns.
• Investment strategies must also be suitable. For instance, a common unsuitable investment strategy is overconcentration of securities in a particular stock or sector.

Investors who rely on their brokers for their recommendations or trading discretion may be able to recover their losses by pursuing FINRA arbitration.

FINRA Rule 3110

Failure to supervise violates FINRA Rule 3110, which requires firms to maintain supervisory systems to ensure their employees comply with FINRA regulations. 

What is broker negligence?

Broker negligence can take several forms, including omission of material facts and unauthorized trading. Investors who lose money through broker negligence may be able to recoup their losses through FINRA arbitration.

Civil Liens

From 2011 to 2017, Joseph Desapio faced a collective $31,303.28 in civil liens.

Background Information

Joseph Desapio has passed the following exams:

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

Joseph Desapio is a registered broker in 20 states.

He has also worked for the following firms:

• Worden Capital Management (CRD#:148366)
• Legend Securities (CRD#:44952)
• Joseph Gunnar & Company (CRD#:24795)
• Brookstone Securities (CRD#:13366)

Kurta Law Can Help

If you worked with Joseph Desapio 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.