Frederick Cammarano Of Spartan Capital Securities Fined By FINRA For Failure To Supervise

FINRA sanctioned securities broker Frederick Joseph Cammarano III (also known as Freddy Cammarano) [CRD: 2277307, New York, New York], given the public information on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Cammarano worked for Spartan Capital Securities LLC from November 27, 2013, to December 31, 2024. Read on to learn more about allegations involving supervisory failures connected to excessive trading and churning at Spartan Capital.

FINRA Sanctioned Freddy Cammarano For Supervisory Failures

Particularly, on April 16, 2026, FINRA issued Case: 2018056490335 sanctioning Frederick Cammarano. Specifically, Cammarano was suspended for 18 months from associating with any FINRA member firm in all principal capacities and fined $15,000. Notably, FINRA alleged that Cammarano failed to reasonably supervise brokers at Spartan Capital Securities LLC despite warning signs involving excessive trading and churning in investor accounts.

Background On The Allegations Concerning Excessive Trading

According to FINRA, Cammarano served in supervisory roles at Spartan Capital, including branch manager of the New York City office and regional branch manager. Regulators alleged that he supervised representatives responsible for accounts that generated high trading costs and commissions.

FINRA stated that from January 1, 2018, through April 30, 2022, Spartan representatives excessively traded 114 investor accounts, including accounts belonging to senior investors. Regulators further alleged that 35 of those accounts were churned. According to FINRA, the trading activity involved high turnover rates, repeated in-and-out trading, and extensive use of margin.

FINRA Alleged That Frederick Cammarano Failed To Supervise For Potential Excessive Trading, Churning

FINRA alleged that Cammarano ignored multiple red flags associated with potentially excessive trading activity. Those alleged warning signs included large trading volumes, substantial investor losses, repeated alerts on exception reports, and client complaints involving representatives under his supervision.

The regulator also alleged that some Spartan representatives had prior disciplinary histories, financial problems, arbitration claims, or client complaints involving unsuitable trading practices. FINRA stated that despite those concerns, the allegedly excessive trading activity continued.

FINRA Rules Allegedly Violated

The disciplinary action referenced FINRA examination reports issued in 2019 and 2020 that allegedly identified concerns involving excessive trading and weaknesses in Spartan Capital’s supervisory procedures. FINRA claimed the firm failed to maintain a supervisory system reasonably designed to detect and prevent excessive trading.

According to FINRA, Cammarano violated FINRA Rules 3110 and 2010 by allegedly failing to reasonably supervise representatives and respond appropriately to red flags involving excessive trading and churning. The disclosure also referenced alleged violations tied to Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.

FINRA stated that Cammarano accepted the sanctions through an Offer of Settlement without admitting or denying the allegations.

Have You Made Investments Through Securities Broker / Financial Advisor Frederick Cammarano?

Do you have questions or concerns regarding investments you made with Frederick Cammarano? Get in touch with Soreide Law Group at (888) 760-6552 or online and consult with a securities attorney regarding a possible recovery of your investment losses. Soreide Law Group has recovered losses for individuals throughout the US. Also, our securities lawyers handle cases on a contingency fee arrangement and advance all costs. Cammarano and brokerage firms Cammarano worked for deny accusations of sales practice violations.