Kyle Manning Subject to Two FINRA Suspensions

Kyle Manning (CRD #: 4571317), a broker formerly registered with Spartan Capital Securities, has been suspended by FINRA, according to his BrokerCheck record, accessed on March 5, 2025. If you want to know more about his alleged conduct as a broker, keep reading.

2025 FINRA Suspension

On January 6, 2025, Kyle Manning received a Letter of Suspension by FINRA alleging that he failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a request for information as to the status of his compliance.

FINRA made this allegation in connection with an arbitration award filed on October 21, 2024. Spartan Capital Securities alleged that Kyle Manning breached an independent contractor agreement.

The arbitration made Kyle Manning liable for $72,948.41 in compensatory damages. You can read the arbitration award here.

Kyle Manning’s suspension will continue until the required payment is made or discharged.

FINRA Rule 2010

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

FINRA Rule 9554

FINRA Rule 9554 penalizes brokers for failing to comply with arbitration awards or settlements by suspending or canceling their registration. Brokers can request a hearing within 21 days, after which their suspension or cancellation becomes final.

FINRA By-Laws

Article VI, Section 3 of FINRA By-Laws allows FINRA to suspend or cancel the membership of any member who fails to comply with arbitration awards or settlement agreements.

2024 FINRA Suspension

On October 8, 2024, Kyle Manning consented to the entry of findings that he allegedly recommended a series of unsuitable and excessive trades that were not in his clients’ best interests.

According to a Letter of Acceptance, Waiver & Consent (AWC), these three clients allegedly relied on Kyle Manning’s investment advice and followed his recommendations regularly, giving him de facto control over their accounts.

Kyle Manning’s trading allegedly resulted in annualized turnover rates of 22-40 and annualized cost-to-equity ratios of 81%-101%, as well as total trading costs of $1,625,977 and total losses of $1,101,277.

Turnover rates over 6 and cost-to-equity ratios over 20% are typically considered signs of excessive trading.

The AWC concluded that these allegations constituted violations of Regulation Best Interest and FINRA Rules 2111 and 2010.

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must use the information in the investor’s profile, such as their tax status, risk tolerance, and age when recommending investments.

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

Sanctions

Kyle Manning consented to a 17-month suspension from associating with FINRA members. His suspension began on October 21, 2024, and will end on March 20, 2026.

You can access the full AWC here.

Investor Dispute

On January 28, 2020, an investor filed a dispute alleging that Kyle Manning made unsuitable investment recommendations as well as misrepresentations. The client sought $668,000 in damages and received a settlement of $75,000.

This dispute was part of a larger arbitration filed against Spartan Capital Securities and over a dozen of its brokers. You can read the arbitration agreement here.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of deception, manipulation, and other fraudulent means of influencing the purchase and sale of securities. This includes the misrepresentation or omission of information, such as an investment’s risks, requirements, or limitations.

Tax Liens

From 2015-2020, Kyle Manning was subject to a total of $434,728.95 in tax liens.

Background Information

Kyle Manning has passed the following exams:

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

In the past, he worked for the following firms:

•     Spartan Capital Securities (CRD#:146251)
•     Southeast Investments, N.C. (CRD#:43035)
•     National Securities Corporation (CRD#:7569)
•     Hunter Scott Financial (CRD#:45559)
•     J.P. Turner & Company (CRD#:43177)

Kurta Law Can Help

If you worked with Kyle Manning 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.