The following information is from FINRA’s website under “Disciplinary Actions, March, 2012:
Spartan Securities Group, LTD (CRD #104478, Clearwater, Florida)
submitted a Letterof Acceptance, Waiver and Consent in which the firm was censured, fined $52,500 and required to revise its WSPs regarding its supervisory system, procedures and qualifications;order handling; best execution; anti-intimidation/coordination; trade reporting; short sale transactions; other trading rules; OATS; books and records; the Sub-Penny Rule; and review for compliance of incoming, outgoing and internal electronic communications.
Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it executed short sale transactions in reportable securities and failed to report each of the transactions to the FNTRF with the correct symbol indicating whether the transaction was a short sale or a short sale exempt transaction and reported some short sales as long to the FNTRF. The findings stated that the firm failed to report to the FNTRF the correct symbol indicating the capacity in which it executed transactions in reportable securities; incorrectly reported transactions to the FNTRF, failed to report a transaction to the FNTRF, reported transactions which it was not required to report to the FNTRF, incorrectly reported reports to the FNTRF, and failed to submit a cancellation for two reports to the FNTRF. The findings also stated that the firm transmitted reports to OATS that contained inaccurate, incomplete, or improperly formatted data.
The findings also included that the firm, on numerous occasions, accepted a short sale order in an equity security from another person, or effected a short sale in an equity security for its own account, without borrowing the security, or entering into a bona fide arrangement to borrow the security; or having reasonable grounds to believe that the security could be borrowed so that it could be delivered on the date delivery is due; and documenting compliance with SEC Rule 203(b)(1) of Regulation SHO. FINRA found that the firm failed to disclose the reported price, the markup/markdown or the correct markup/markdown,and/or the market maker status on customer confirmations.
FINRA also found that the firm failed to provide an order memorandum or a proprietary ledger, failed to provide a customer account statement, failed to provide a complete customer order memorandum, and in other instances failed to document the correct time of entry, time of execution, execution price, and/or terms and conditions on the customer order memorandum.
In addition, FINRA determined that the firm’s supervisory system did not provide for supervision reasonably designed to achieve compliance with applicable securities laws, regulations and/or FINRA rules addressing supervisory system, procedures and qualifications; order handling; anti-intimidation/coordination; trade reporting; short sale transactions; other trading rules; OATS; books and records; the Sub-Penny Rule; and review for compliance of incoming, outgoing and internal electronic communications.
Moreover, FINRA found that the firm failed to provide documentary evidence during one month that it performed the supervisory reviews set forth in its WSPs concerning supervisory system, procedures and qualifications; order handling; best execution; antiintimidation/coordination; trade reporting; other trading rules; OATS; and review for compliance of incoming, outgoing, and internal electronic communications.
(FINRA Case #2009017008302)
The information from FINRA’s website has ended.
Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide.
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