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Shadi Barakat Facing Allegations of FINRA Rule Violations

Shadi Barakat (CRD #: 5031281), a broker registered with Spartan Capital Securities, allegedly committed several FINRA violations, according to his BrokerCheck record, accessed on September 5, 2022. Read on if you have questions about his conduct as a broker.

Investor Disputes

On June 9, 2022, an investor named Shadi Barakat in allegations involving an unsuitable investment and negligent misrepresentation. This dispute is pending.

According to allegations filed on March 27, 2017, Shadi Barakat gave unsuitable investment recommendations and engaged in excessive trading. The clients sought $652,346 in damages and received a settlement of $150,000. 

FINRA Rule 2111

FINRA Rule 2111 requires that brokers tailor their investment recommendations to match investors’ profiles. These profiles contain information about an investor’s other investments, financial goals, and age.

Investors who rely on brokers for investment recommendations can pursue FINRA arbitration and potentially recover their losses.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of deception, manipulation, and other fraudulent ways of influencing the purchase and sale of securities. Misrepresenting an investment’s potential risks, returns, or other features violates this rule.

Misrepresentation is one of many ways brokers can act negligently. Investors who feel their losses are the result of broker negligence may be able to recover their funds by seeking out FINRA arbitration.

FINRA Rule 3110

FINRA Rule 3110 requires that firms create systems of supervision to ensure their compliance with securities regulations. Firms must appoint adequately trained or experienced supervisors and adopt Written Supervisory Procedures (WSPs) to guide them in their duties.

Tax Liens

From 2016-2019, Shadi Barakat was subject to a total of $297,280.29 in tax liens.

Background Information

Shadi Barakat has passed the following exams:

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

Shadi Barakat is a registered broker in California, New York, Ohio, Pennsylvania, and Texas.

He has also worked for the following firms:

  • Aegis Capital (CRD#:15007)
  • GunnAllen Financial (CRD#:17609)
  • Joseph Gunnar & Company (CRD#:24795)
  • Mercer Capital (CRD#:104012)
  • VFinance Investments (CRD#:44962)

Kurta Law Can Help

If you worked with Shadi Barakat 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.