FINRA sanctioned securities broker Arthur Bruce McQuaide [CRD: 4581876, Garden City, New York], and an investor complained about him, according to Financial Industry Regulatory Authority (FINRA) BrokerCheck. Evidently, Arthur McQuaide worked for Spartan Capital Securities LLC from January 26, 2016, to December 22, 2022. Keep reading to learn more about the securities broker’s disclosures.
McQuaide Sanctioned By FINRA For Excessive Trading
Evidently, FINRA issued Case: 2018056490308 on December 7, 2023, sanctioning Arthur McQuaide for infractions. Allegedly, McQuaide engaged in excessive trading in two senior clients' accounts.
Notably, the regulator stated that McQuaide's clients routinely followed his recommendations, giving McQuaide de facto control over their accounts. As a result of McQuaide's trading, the clients allegedly suffered collective realized losses of $190,839, while paying total trading costs of $201,684, including commissions of $160,360.
Specifically, in March 2016, Client A, a 73-year-old individual, opened an account at Spartan with McQuaide. From March 2016 through January 2020, McQuaide made 214 transactions in Client A’s account, resulting in an annualized cost-to-equity ratio of 52% and annualized turnover rate of 14.73. This trading generated total costs of $171,656 and caused the account to experience realized losses of $169,260.
Also, in March 2016, Client B, a 63-year-old farmer, opened an account at Spartan with McQuaide intending to grow his retirement savings. From April 2016 through November 2019, McQuaide supposedly made 431 transactions in Client B’s account, resulting in an annualized turnover rate of 9.37 and an annualized cost-to-equity ratio of 42%. This trading generated total costs of $30,028 and caused the investment account to realize losses of $21,579.
The sanctions ordered include a suspension for six months, starting from December 18, 2023, to June 17, 2024.
Spartan Capital Securities Investor Accused Arthur McQuaide Of Misrepresentation, Unsuitable Recommendations
Also, a Spartan Capital Securities client filed FINRA Arbitration No. 19-03740 about Arthur McQuaide. The client alleged that McQuaide made unsuitable recommendations and misrepresentations. Because of this, the client allegedly sustained damages. Therefore, on February 22, 2022, Spartan Capital Securities settled this matter by paying the client $5,000 in damages.
Did You Realize Losses Because Of Securities Broker McQuaide?
Have you experienced losses because of Arthur McQuaide? If you have, reach out to Soreide Law Group online or at (888) 760-6552 so you can talk to a securities lawyer concerning a potential recovery of your investment losses. Soreide Law Group has recovered losses for investors throughout the country, represents investors through contingency fees, and advances all costs. McQuaide and brokerage firms McQuaide worked for deny any allegations of sales practice violations.
