FINRA suspends Spartan Capital Securities rep for recommending excessive trades
The Financial Industry Regulatory Authority (FINRA) has suspended Tory A. Duggins for 18 months due to recommendations of excessive trades.
Duggins first registered with FINRA as a General Securities Representative (GS) in September 2004. Between September 2004 and February 2016, Duggins was registered with FINRA as a GS through nine different member firms. From February 2016 to the present, Duggins has been registered with FINRA as a GS through Spartan Capital Securities, LLC.
From December 2016 through April 2022, Duggins engaged in quantitatively unsuitable trading in the accounts of eight customers. His customers relied on his advice and routinely followed his recommendations and, as a result, Duggins exercised de facto control over the customers’ accounts. Duggins’ trading resulted in high cost-to-equity ratios and turnover rates that were well above the traditional guideposts of 20 percent and six, respectively, as well as significant losses, as set forth below.
Specifically, Duggins’ trading in the eight customer accounts resulted in annualized cost-to-equity ratios of 58 percent to 289 percent and annualized turnover rates of 14.36 to 63.24 while generating total trading costs of $444,176, including $343,416 in commissions, and causing $235,494 in total realized losses.
In addition, Duggins willfully failed to report a written customer complaint alleging a sales practice violation on his Uniform Application for Securities Industry Registration or Transfer (Form U4) in violation of Article V, Section 2 of FINRA’s By- Laws and FINRA Rules 1122 and 2010.
Duggins has agreed to an eighteen-month suspension from associating with any FINRA member in all capacities.
He has submitted a statement of financial condition and demonstrated an inability to pay. In light of his financial status, no monetary sanctions have been imposed.