Joseph Steward Of Spartan Capital Suspended By FINRA For Excessive Trading

Investors potentially incurred losses because of securities broker Joseph Jemel Steward II [CRD: 3241331, New York, New York], according to publicly available information on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Joseph Steward worked for Spartan Capital Securities LLC from April 5, 2016, to August 11, 2022, and has been registered with PHX Financial Inc. since August 10, 2022. Investors can see below to learn more about the allegations against this broker.

Overview Of FINRA Regulatory Action

FINRA records show that on May 6, 2025, FINRA initiated a regulatory action against Joseph Steward based on conduct that allegedly occurred during his tenure at Spartan Capital Securities LLC. The matter was resolved through a Letter of Acceptance, Waiver, and Consent, meaning Steward agreed to the findings and sanctions without admitting or denying the allegations. The regulatory action focused on Steward’s recommendations to a retail client over a two-year period.

Allegations Of Excessive Trading Against Joseph Steward

According to FINRA, between October 2019 and October 2021, Steward recommended a high volume of securities transactions in a single client’s account. FINRA alleged that this level of trading was excessive when viewed as a whole and was not consistent with the client’s best interests. The client reportedly relied heavily on Steward’s advice and regularly followed his recommendations, giving Steward de facto control over the account.

During this period, FINRA found that Steward recommended 76 transactions. The regulator reported that the account experienced an annualized turnover rate of approximately 32, meaning the securities in the account were effectively replaced many times over in a single year. FINRA also cited an annualized cost-to-equity ratio of about 142 percent, indicating the account would have needed to earn extraordinarily high returns just to break even on trading costs.

Specific Rule Violations Cited By FINRA

FINRA concluded that Steward willfully violated Regulation Best Interest under Rule 15l-1(a)(1) of the Securities Exchange Act of 1934. Regulation Best Interest requires brokers to act in the best interest of retail clients and prohibits placing the broker’s financial interests ahead of the client’s interests at the time recommendations are made.

FINRA also found violations of FINRA Rule 2111, which addresses suitability and requires brokers to have a reasonable basis to believe that recommendations are suitable for a client based on their investment profile. In addition, FINRA cited violations of FINRA Rule 2010, which obligates brokers to observe high standards of commercial honor and just and equitable principles of trade.

Client Harm And Sanctions Imposed Against Joseph Steward

According to FINRA’s findings, the excessive trading generated approximately $25,939 in commissions and resulted in realized losses of about $24,568 for the client. As a result of the violations, FINRA imposed a five-month suspension from associating with any FINRA member in all capacities. Steward was also ordered to pay partial restitution of $6,000 to the affected client.

Were You Impacted By Financial Advisor / Securities Broker Steward?

Do you need clarification on any investment losses relating to Joseph Steward? You can contact Soreide Law Group at (888) 760-6552 or online and talk to a securities attorney concerning a possible recovery of your investment losses. Soreide Law Group has recovered losses for investors throughout the country. Also, the firm works on a contingency fee basis and advances all costs. Steward and the brokerage firms Steward worked for deny accusations of sales practice violations.