John Palma Barred By FINRA, Involved In Spartan Capital Client’s Excessive Trading Complaint

FINRA barred securities broker John Michael Palma [CRD: 6848651, New York, New York], and investors complained about him, according to disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Palma worked for Spartan Capital Securities LLC from September 15, 2022, to March 17, 2025, SW Financial from December 10, 2019, to September 14, 2022, and Worden Capital Management LLC from September 19, 2017, to December 17, 2019. Read on to discover more about the disclosures involving Palma.

FINRA Barred Palma For Failure To Provide Information

Notably, on March 25, 2025, FINRA issued Case: 2019060753511 sanctioning John Palma for infractions. Specifically, Palma was permanently barred from the securities industry in all capacities. Evidently, FINRA alleged that Palma refused to produce information and documents that were requested as part of an investigation.

According to FINRA, the regulatory action stemmed from a cycle examination of Palma’s former employer, Worden Capital Management LLC. Without admitting or denying the findings, Palma consented to the sanctions and the entry of findings under an Acceptance, Waiver Consent (AWC). The order became final on March 25, 2025, resulting in Palma’s indefinite removal from the securities industry.

John Palma Disclosed Excessive Trading Allegations By Spartan Capital Securities Client

Specifically, a client of Spartan Capital Securities LLC disputed John Palma’s sales practices by bringing FINRA Arbitration No. 24-00308. Allegedly, Palma engaged in excessive trading concerning over-the-counter equities and stocks. As a result, Spartan Capital Securities opted to settle the matter on April 1, 2025, by compensating the client in the amount of $90,000.

SW Financial Investor Accused Palma Of Breach Of Fiduciary Duty

Also, a SW Financial client filed FINRA Arbitration No. 22-02586 about John Palma. Mainly, the client alleged that Palma failed to supervise, was negligent, breached a contract, breached his fiduciary duty, and made unsuitable recommendations. Therefore, on August 23, 2024, a FINRA Arbitration Panel issued an Award ordering SW Financial to pay the client $10,364,625.35 in compensatory damages, plus $3,109,387.61 in punitive damages.

Were You Impacted By Financial Advisor / Securities Broker John Palma?

Are you concerned regarding investments you made with John Palma? You should contact Soreide Law Group online or at (888) 760-6552 and consult with a securities attorney concerning a potential recovery of your investment losses. Soreide Law Group has recovered losses for investors throughout the country. Also, the firm works on a contingency fee arrangement and advances all costs. Palma and brokerage firms Palma worked for deny allegations of sales practice violations.