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TAG | Spartan Securities Group LTD

May/13

20

FINRA Suspends Tampa Rep

Comments off · Posted by Securities Lawyer in FINRA

The following information appeared on FINRA’s website under “Disciplinary and Other FINRA Actions, May, 2013.”

Ronald Wayne Lankford (CRD #1751588, Registered Principal, Tampa, Florida)

was suspended from association with any FINRA member firm in any principal capacity other than as a FINOP (Series 27) and Introducing Broker-Dealer/FINOP (Series 28) for 18 months; suspended from association with any FINRA member firm in a principal capacity as a FINOP (Series 27) and Introducing Broker-Dealer/FINOP (Series 28) for one month; and ordered to re-qualify as a principal by passing the required examination(s) before re-associating with any member firm in that capacity. In light of Lankford’s financial status, no monetary sanction has been imposed.

Without admitting or denying the allegations, Lankford consented to the described sanctions and to the entry of findings that he was aware of and permitted the sales of unregistered promissory notes by his member firm’s representatives, failed to ensure that the notes were either registered or exempt from registration, and failed to ensure that all material facts were disclosed to investors who were offered and sold the promissory notes.

FINRA’s findings stated that when a preferred stock private placement offering began, Lankford, as his firm’s president and CCO, was responsible for approving the private placements and for conducting due diligence, but failed to conduct adequate due diligence regarding the preferred stock offering to ensure that the PPM disclosed all material facts to investors.

When subsequent material events occurred, Lankford did not suspend sales of the preferred stock pending the creation and receipt of an amended PPM (Private Placement Memorandum is document explaining a new offering of securities for private placement), and instead allowed the continued sale of the preferred stock by representatives using the original PPM without any amendment.

FINRA’s findings also stated that Lankford had the overall supervisory responsibility for the sales representatives and the firm’s sales activities, and allowed firm representatives to sell the preferred stock with a PPM that had material misrepresentations and omitted material facts. Lankford admitted to FINRA that although he was responsible for supervision of the firm’s OSJ principal, he did not discharge this responsibility. Lankford failed to supervise representatives selling the preferred stock to ensure all material facts were adequately and accurately disclosed to investors.

FINRA’s findings also included that Lankford, as the firm’s president, CCO and FINOP, allowed it to engage in a securities business while failing to maintain its minimum net capital. FINRA found that Lankford failed to make and keep a current and accurate general ledger that showed all of the firm’s liabilities, and prepared inaccurate net capital computations for the firm.

The suspension in a principal capacity as a FINOP (Series 27) and Introducing Broker-Dealer/FINOP (Series 28) was in effect from April 1, 2013, through April 30, 2013. The suspension in any principal capacity (other than as a FINOP (Series 27) and Introducing Broker-Dealer/FINOP (Series 28) is in effect from April 1, 2013, through September 30, 2014. (FINRA Case #2010020829803)

According to FINRA’s BrokerCheck, Ronald Wayne Lankford is currently employed by and registered with the following FINRA Firm:

SPARTAN SECURITIES GROUP, LTD.
15500 ROOSEVELT BOULEVARD, SUITE 303
CLEARWATER, FL 33760
CRD# 104478
Registered with this firm since: 2/14/2012

This broker was previously registered with FINRA at the following brokerage firms:

SAGE SOUTHEASTERN SECURITIES, INC.
CRD# 144051
ATLANTA, GA
02/2010 – 09/2011

FIRST LEGACY SECURITIES, LLC
CRD# 47079
VESTAVIA HILLS, AL
09/2007 – 03/2010

JONES, BYRD, & ATTKISSON, INC.
CRD# 36268
ATLANTA, GA
04/2006 – 02/2008

This ends the information obtained on FINRA’s website.

Soreide Law Group, PLLC, represents clients nationwide before FINRA. Call for a free consultation with on how to potentially recover your losses. To speak with an attorney call 888-760-6552

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Mar/12

22

Spartan Securities Group, Clearwater, FL, Censured and Fined by FINRA

Comments off · Posted by Securities Lawyer in FINRA

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.
For a free consultation with an attorney, please call 888-760-6552, or visit our website at: www.securitieslawyer.com.

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