FINRA Sanctions Marc Reda

Soreide Law Group is investigating possible investor claims against securities broker Marc Reda AKA Marc Augustus Reda [CRD#: 2757330, New York, NY]. Notably, FINRA sanctioned the securities broker, who worked for Spartan Capital Securities. Allegedly, Reda churned a client’s account and made unsuitable recommendations and unauthorized transactions. Here is a brief summary FINRA’s allegations against Reda.

FINRA Sanctions Spartan Capital Securities Broker Marc Reda For Churning

Evidently, on March 21, 2022, FINRA issued Case #: 2019063526901 sanctioning Marc Reda for infractions. Specifically, FINRA barred the securities broker. Notably, FINRA alleged that Reda churned the client’s account and made unsuitable recommendations and unauthorized transactions.

According to the Order, From January 2017 to December 2019, Reda recommended an investment strategy to clients that was unsuitable while he was associated with Spartan Capital Securities LLC.

Specifically, the investment strategy involved actively trading in anticipation of corporate announcements. Across 66 client accounts, Reda executed 10 or more trades in connection with the investment strategy.

In 6 of the client accounts, Reda executed 98 trades without obtaining permission from the clients beforehand. Reda also charged excessive commissions in September 2018 in connection with executing buy transactions in 22 client accounts. The excessive commissions averaged 8.6%.

Further, while at Spartan Capital, Reda failed to disclose eight client complaints alleging sales practice violations on his Form U4. Lastly, Reda failed to timely amend his Form U4 and disclose an open tax lien and warrant in the amount of $225,929.49. As a result, Reda violated FINRA Rules 2010, 2020, 1122, 2111(a), and Section 10(b) of the Securities Exchange Act of 1934.

FINRA Sanctions PHX Financial Securities Broker Marc Reda For Unauthorized Transactions

Evidently, on June 2, 2017, FINRA issued Case #: 2016048486601 sanctioning Marc Reda for infractions. Specifically, FINRA imposed a three-month suspension and a $5,000 fine. Notably, FINRA alleged that Reda made unauthorized transactions.

Investprivate Securities Broker Terminated For Client Complaint

Also, Investprivate disaffiliated with Reda. Allegedly, Reda was involved in a client complaint at the time of the termination.

PHX Financial Terminates Securities Broker Marc Reda For Violation Of Policy

Also, Marc Reda worked for PHX Financial. However, PHX Financial disaffiliated with Reda. Evidently, PHX Financial alleged that Reda violated company policy.

Reda Discloses Misrepresentation Allegations By Spartan Capital Securities Client

Evidently, a Spartan Capital Securities client filed FINRA Arbitration #: 19-03740 about Marc Reda. Namely, the client alleged that Reda made misrepresentations and unsuitable recommendations. Because of this, the client sustained damages. Therefore, on February 22, 2022, Spartan Capital Securities settled this matter by paying the client $5,700.

Marc Reda Discloses Unauthorized Transactions Allegations By Spartan Capital Management Client

Also, a client of Spartan Capital Management contested Marc Reda’s sales practices by filing FINRA Arbitration #: 21-02950 on December 10, 2021. Allegedly, Reda churned the client’s account, made unsuitable transactions, breached a contract, made misrepresentations, made unauthorized transactions, and failed to supervise. Supposedly, the equities and private placements which Reda sold or recommended had caused the client to sustain damages. Therefore, the client seeks compensatory relief from Spartan Capital Management or Reda in the amount of $83,086.81 in this ongoing matter.

Spartan Capital Securities Investor Accuses Reda Of Unauthorized Transactions

Evidently, a Spartan Capital Securities client filed FINRA Arbitration #: 18-04117 about Marc Reda. Notably, the client alleged that Reda made unauthorized transactions and churned the client’s account. Because of this, the client sustained damages on securities. Therefore, on December 4, 2018, a FINRA Arbitration Panel issued an Award ordering Spartan Capital Securities or Reda to pay the client $15,381.44 in compensatory damages.

Marc Reda Discloses Excessive Commissions Allegations By PHX Financial Client

Also, a client of PHX Financial contested Marc Reda’s sales practices, according to a complaint. Allegedly, Reda charged the client excessive commissions. Supposedly, the over-the-counter equities and ETFs which Reda sold or recommended had caused the client to sustain damages. Therefore, PHX Financial opted to settle the matter on August 31, 2017 by compensating the client in the amount of $45,000.

PHX Financial Investor Accuses Reda Of Breach Of Fiduciary Duty

Additionally, a PHX Financial client filed FINRA Arbitration #: 16-01461 about Marc Reda. Namely, the client alleged that Reda breached a fiduciary duty, and made unsuitable recommendations. Because of this, the client sustained damages on stocks. Therefore, on July 13, 2016, PHX Financial settled this matter by paying the client $26,000.

Recent Employer Information

Marc Reda worked for Spartan Capital Securities in New York, NY, as a securities broker from May 12, 2016 to March 22, 2022. 

Did Spartan Capital Securities Broker Marc Reda Cause You To Experience Damages?

Have you experienced damages by investing with Marc Reda? If so, reach out to Soreide Law Group at (888) 760-6552 to talk with a securities lawyer about potentially recovering your investment losses. Notably, Soreide Law Group has successfully recovered money for investors throughout the United States. The firm represents clients on a contingency fee basis and advances all costs. Reda and brokerage firms Reda was employed by deny any and all allegations of sales practice violations.