Investors might have sustained losses due to Joseph C. Desapio [CRD: 5837553, New York, New York], and FINRA sanctioned the securities broker, based on the disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Evidently, Joseph Desapio worked for Spartan Capital Securities LLC from May 5, 2017, to July 27, 2022. He was discharged when Spartan Capital Securities received a client arbitration claim alleging a client loan by Desapio. Continue reading to learn more about Desapio's disclosures and the impact on investors.
Regulator Suspended Desapio For Excessive Trading, Borrowing
Specifically, on March 18, 2024, FINRA issued Case: 2014040721901 suspending Joseph Desapio for 15 months. The duration of his suspension is from March 18, 2024, to June 17, 2025. Namely, FINRA alleged that Desapio recommended quantitatively unsuitable trades in accounts held by investors, one of whom was a senior.
The findings stated that Desapio's investors followed his recommendations. As a result, Desapio had control over the investors' accounts. His trading resulted in high turnover rates and cost-to-equity ratios that were well above traditional guideposts, as well as losses. Desapio's trading in these investor accounts generated total trading costs of $136,023, including $111,798 in commissions, and caused $92,546 in realized losses. Desapio's employer settled with two investors after they filed an arbitration claim against them along with Desapio and the firm alleging sales practice violations.
The findings also stated that Desapio borrowed $20,000 from an investor, with whom he had a prior personal relationship. Supposedly, Desapio did not provide prior notice to or obtain written approval from his firm for the loan.
Spartan Capital Securities LLC Disaffiliated With Joseph Desapio For Allegations of Unauthorized Borrowing
Also, on June 28, 2022, Spartan Capital Securities, LLC disaffiliated with Desapio. Notably, Spartan Capital Securities, LLC alleged that Desapio borrowed money and then executed a promissory note for funds from an investor. Supposedly, Desapio violated the firm's procedures and policies by not notifying the firm of the loan.
Spartan Capital Management LLC Investor Accused Desapio Of Breach Of Fiduciary Duty
Additionally, a Spartan Capital Management LLC customer filed FINRA Arbitration No. 22-00245 about Joseph Desapio. Evidently, the customer alleged negligence, breach of fiduciary duty, failure to supervise, churning, and breach of contract. Because of this, the customer allegedly sustained damages on stocks. Therefore, on January 10, 2023, Spartan Capital Management LLC settled this matter by paying the customer $70,000 in damages.
Did You Sustain Losses Because Of Joseph Desapio?
Have you sustained losses because of Joseph Desapio? If so, reach out to Soreide Law Group online or at (888) 760-6552 and talk with a securities attorney concerning a potential recovery of your investment losses. Soreide Law Group has recovered losses for investors across the country, works on a contingency fee basis, and advances all costs. Desapio and brokerage firms he worked for deny any allegations of sales practice violations.
