Marc Reda Named in Investor Dispute Following FINRA Bar
Marc Reda (CRD #: 2757330), a broker formerly registered with Spartan Capital Securities, is involved in an investor dispute, according to his BrokerCheck record, accessed on April 12, 2022.
On December 10, 2021, Marc Reda was named in an investor dispute alleging churning, unsuitability, breach of fiduciary duty, misrepresentation, failure to supervise, and unauthorized trading. The investor is seeking $83,086.81一the case is still pending.
FINRA initiated the bar on March 21, 2022. This bar stems from allegations that Marc Reda executed excessive trades in customer accounts.
- In 19 investor accounts, Marc Reda allegedly generated costs of $264,734 and caused realized losses of $232,043.
According to the findings, he exercised de facto control of the trading in his customers’ accounts and allegedly made unauthorized transactions in the customer accounts.
The findings also included that Marc Reda allegedly recommended an unsuitable and costly active trading strategy to his customers without understanding the potential risks and rewards.
Marc Reda also allegedly circumvented his firm’s supervisory procedures in order to charge commissions well in excess of five percent on the proceeds transactions.
FINRA also found that Marc Reda allegedly failed to timely amend his Uniform Application for Securities Industry Registration or Transfer (Form U4) to disclose eight customer complaints alleging sales practice violations. In addition, he willfully failed to amend his Form U4 to disclose an unsatisfied tax lien and an unsatisfied tax warrant, totaling $225,929.49.
You can read a copy of the FINRA bar here.
On December 29, 2017, Marc Reda filed for bankruptcy.
FINRA Suspension and Fine
According to an Acceptance, Waiver, and Consent agreement dated June 2, 2017, Marc Reda consented to the findings that he allegedly exercised discretion in customers’ accounts without written authorization from the customers and without having obtained his member firm’s approval to treat those accounts as discretionary. The findings stated that he allegedly failed to timely disclose on his Form U4 a federal tax lien filed against him in the amount of $575,101.
FINRA Rule 3260 states that no broker shall exercise trading discretion in a customer account unless that account has been approved for discretionary trading, both by the customer and the firm.
As part of the terms of the AWC, Marc Reda consented to:
- A three-month suspension
- A $5,000 fine
You can read a copy of the AWC here.
Settled Investor Disputes
On March 15, 2016, Marc Reda was named in an investor dispute alleging failure to follow instructions, unauthorized trading, poor communication, and overconcentration. The case was settled for $$112,500.
On January 21, 2016, he was named in an investor dispute alleging unauthorized trades. The case was settled for $120,000.
On January 25, 2016, Marc Reda was permitted to resign from his position at PHX Financial after allegedly violating the firm’s cell phone policy.
Marc Reda has passed the following exams:
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 62 – Corporate Securities Limited Representative Examination
Besides Spartan Capital Securities and PHX Financial, he has also worked with the following firms:
- First Standard Financial Company(CRD#:168340)
- Laidlaw & Company (UK) (CRD#:119037)
- Clark Dodge & Co. (CRD#:23288)
- John Thomas Financial (CRD#:40982)
- Prestige Financial Center (CRD#:30407)
- National Securities Corporation (CRD#:7569)
- Clark Street Capital (CRD#:38304)
- Parker Financial Corp. (CRD#:42140)
- Joseph Stevens & Company (CRD#:35459)
- Joseph Gunnar & Co. (CRD#:24795)
- InvestPrivate (CRD#:103737)
- Bluestone Capital Securities (CRD#:36189)
- Dalton Kent Securities Group (CRD#:38813)
Kurta Law Can Help
If you suffered losses after working with Marc Reda, don’t hesitate to contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors 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. Please reach out if you have any questions about what steps to take next to recover your investment losses.