Frederick Joseph Cammarano III has agreed to pay a $15,000 fine and to be suspended for eighteen months from associating with any Financial Industry Regulatory Authority (FINRA) member in all principal capacities.

Cammarano first became registered with FINRA as a GS through his association with a member firm in 1999. Between 1999 and 2013, Cammarano was registered through eight FINRA member firms.

From November 2013 to December 31, 2024, Cammarano was registered with FINRA, including as a GS, GP, and OS through his association with Spartan Capital Securities, LLC.

During the relevant period, Cammarano served as the Branch Manager for Spartan’s New York City office. During the relevant period, Cammarano also served as Spartan’s Regional Branch Manager and was responsible for supervising the branch managers for Spartan’s other branch offices.

In addition, during the relevant period, Cammarano was designated in Spartan’s WSPs as Head of Retail; from November 1, 2018, through the end of the relevant period, as responsible for “Trading”; and, from February 1, 2019, through the end of the relevant period, as responsible for “Trading Supervision.”

As Branch Manager for Spartan’s New York City office, Cammarano was responsible for supervising the Spartan representatives in the New York City office.

Although Cammarano is no longer registered or associated with a FINRA member, he remains subject to FINRA’s jurisdiction for purposes of this proceeding, pursuant to Article V, Section 4 of FINRA’s By-Laws, because the Complaint was filed within two years after December 31, 2024, which was the effective date of termination of Cammarano’s registration with Spartan, and the Complaint charges him with misconduct committed while he was registered or associated with a FINRA member.

For more than four years, Spartan Capital Securities, LLC allegedly defrauded customers by engaging in widespread churning, generating millions in revenue, and causing customers millions in harm.

Spartan’s business model depended on this misconduct – approximately two-thirds of the firm’s trading revenue and one-third of its overall revenue, more than $46 million in total, was generated from more than 1,200 accounts with a cost-to-equity ratio greater than 20% from January 2018 to April 2022.

Spartan allegedly allowed the Spartan Representatives to churn and excessively trade customer accounts despite glaring red flags that those representatives were committing misconduct and harming customers.

During the relevant period, Spartan, Respondent Kim Monchik (the firm’s Chief Administrative Officer (“CAO”) and periodic Chief Compliance Officer (“CCO”)) and Respondent Frederick Joseph Cammarano III (the firm’s Regional Branch Manager and direct supervisor of many of the Spartan Representatives) allegedly ignored numerous red flags of excessive trading and churning in hundreds of Spartan customer accounts, including: (i) large trading volumes; (ii) high losses; (iii) cost-to-equity ratios over 20%; (iv) turnover rates greater than six; (v) in-and-out trading; (vi) frequent use of margin; (vii) notifications from FINRA that the firm’s representatives were excessively trading their customers’ accounts and that the firm’s supervision of those representatives was unreasonable; (viii) representatives who were experiencing significant financial pressures and were the subject of customer complaints; and (ix) accounts and representatives appearing on active account exception reports month after month.

By failing to reasonably supervise the trading in customer accounts – including failing to supervise churning in violation of Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder – and by failing to reasonably investigate and address red flags of excessive trading and churning, Cammarano violated FINRA Rules 3110 and 2010.