The Financial Industry Regulatory Authority Inc. on Tuesday suspended three brokers who have not been registered with a broker-dealer since 2022 for violation of the best interest obligation under Regulation Best Interest when they excessively traded, or churned, client accounts, driving up costs and commissions by $6.07 million, according to Finra.
The three brokers, George Apolonides, also known as George Apollo, Costos Tsamos, also known as Gus Tsamos, and Kyle Manning each worked at Spartan Capital Securities in Long Island from January 2016 to December 2022.
An attorney for the three ex-brokers, Craig Riha, did not return a call Wednesday to comment. The CEO of New York-based Spartan Capital Securiteis, John Lowry, also did not return a call to comment.
The three ex-brokers agreed to Finra’s findings in separate settlements without admission or denial. When brokers churn clients’ positions in their accounts, they generate revenue that they may potentially pocket.
Three of the four arbitration claims listed on Spartan Capital’s BrokerCheck profile cite churning as one of the allegations against the firm in each, separate lawsuit.
Reg BI prohibits brokerages and registered representatives from putting their financial interests ahead of their clients’ interests and requires that they disclose and mitigate conflicts of interest. The measure went into force in June 2020, after being approved by the Securities and Exchange Commission a year earlier.
According to the settlement, Apolonides was suspended from the securities industry for 11 months; it is his second suspension by Finra since June, when he ran afoul of Finra for failing to comply with an arbitration settlement agreement.
Between March 2016 and April 2022, Apolonides excessively traded four customers’ accounts, according to Finra, and he generated total trading costs of $618,911, including $563,263 in commissions, and caused $735,376 in total realized losses.
According to the settlement, Tsamos was suspended from the securities industry for 17 months; it is his second suspension by Finra since June, when, like Apolonides, he ran afoul of Finra for failing to comply with an arbitration settlement agreement.
Between February 2016 and April 2022, Tsamos excessively traded six customers’ accounts, according to Finra, and he generated total trading costs of $958,948, including $849,576 in commissions, and causing over $1.03 million in total realized losses.
According to his settlement, Manning was suspended from the securties industry for 17 months.
Between February 2016 and April 2022, Manning excessively traded three customers’ accounts, according to Finra, generating total trading costs of $1,625,977, including $1,477,893 in commissions, and caused $1,101,277 in realized losses.
From 401(k)s to retail funds, Deloitte sees private equity and credit crossing into mainstream investing on two fronts at once.
Big-name defections from Morgan Stanley, UBS, and Merrill Lynch headline a busy two weeks of recruiting for the wirehouse.
Markets have always been unpredictable. What has changed is the amount of information investors are trying to process and the growing role advisors play in helping clients avoid emotional decisions
Six apartment deals, one "big account," and $2.7M in undocumented insider loans. Now the lawsuit lands
The Illinois order refers to Brandon Ellington’s investment program as a “Ponzi-like scheme.”
Wellington explores how multi strategy hedge funds may enhance diversification
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
