Shadi Barakat Facing Client Disputes Concerning Excessive Trading

Investors potentially experienced losses because of securities broker Shadi Taysir Barakat (also known as Sean Barakat) [CRD: 5031281, New York, New York], according to disclosures on FINRA BrokerCheck. Specifically, Shadi Barakat worked for Alexander Capital, L.P. in Red Bank, New Jersey, from October 21, 2022, to October 24, 2022, and Spartan Capital Securities LLC in New York, New York, from May 1, 2017, to October 15, 2022. Here’s more about the securities broker’s disclosures.

FINRA Charged Barakat With Failing To Testify

Particularly, on September 9, 2024, FINRA initiated Case No. 2018056490315 against Shadi Barakat. FINRA alleged that Barakat failed to provide testimony requested by FINRA as part of its investigation into whether he engaged in churning and excessive trading in his investors’ accounts. Therefore, FINRA intends to sanction Barakat.

According to FINRA, Barakat was under investigation regarding potential churning and excessive trading in his investors' accounts at Spartan Capital Securities LLC. As part of this investigation, FINRA scheduled testimony with Barakat on June 18, 2024. However, despite confirming his availability, Barakat failed to appear for the testimony. Following this, FINRA made a second request for OTR testimony on July 11, 2024, which Barakat also failed to attend. FINRA asserts that his refusal to testify impeded its investigation into potential misconduct, violating FINRA Rules 8210 and 2010. The regulatory action against Barakat remains pending.

Shadi Barakat Disclosed Breach of Fiduciary Duty Allegations By Spartan Capital Securities LLC Client

Specifically, a client of Spartan Capital Securities LLC contested Shadi Barakat’s sales practices by filing FINRA Arbitration No. 22-01203. Allegedly, Barakat made unsuitable investment recommendations, was negligent, misrepresented material facts, breached his fiduciary duty, and failed to supervise certain representatives. It appears that Barakat caused the client to sustain damages. Therefore, Spartan Capital Securities LLC opted to settle the matter on January 27, 2023, by compensating the client in the amount of $60,000.

Barakat Disclosed Unauthorized Trading Allegations by Aegis Capital Corp Client

Also, a client of Aegis Capital Corp contested Shadi Barakat’s sales practices by filing a written complaint on February 10, 2023. Allegedly, Barakat engaged in unsuitable trading and unauthorized trading. It appears that Barakat caused the client to sustain damages. Therefore, Aegis Capital Corp opted to settle the matter on April 12, 2023, by compensating the client in the amount of $29,500.

Aegis Capital Corp Investor Accused Shadi Barakat of Negligence

Notably, an Aegis Capital Corp client filed FINRA Arbitration No. 15-02850 about Shadi Barakat. Supposedly, Barakat made unsuitable recommendations, engaged in unauthorized trading, was negligent, made misrepresentations of material fact, and breached his fiduciary duty. Because of this, the client allegedly sustained damages on leveraged ETNs and ETFs. Therefore, on July 28, 2020, Aegis Capital Corp settled this matter by paying the client $35,000 in damages.

Barakat Disclosed Excessive Trading Allegations by Aegis Capital Corp Client

Also, a client of Aegis Capital Corp contested Shadi Barakat’s sales practices by filing FINRA Arbitration No. 17-00512. Allegedly, Barakat engaged in excessive trading and made unsuitable investment recommendations. It appears that Barakat caused the client to sustain damages on stocks. Therefore, Aegis Capital Corp opted to settle the matter on August 3, 2018, by compensating the client in the amount of $150,000.

Were You Impacted By Securities Broker Shadi Barakat?

Seeking more information about Shadi Barakat? If you incurred losses, get in touch with Soreide Law Group online or at (888) 760-6552 and speak with a securities lawyer about a potential recovery. Soreide Law Group has recovered losses for investors throughout the United States, works on a contingency fee basis, and advances all costs. Barakat and brokerage firms Barakat worked for deny accusations of sales practice violations.