- July 31, 2023
- Spartan Capital
Murat (Marc) Kartal (CRD#: 6346419) is a previously registered Broker.
He entered the securities industry in 2015 and previously worked for Spartan Capital Securities, LLC; and Garden State Securities, Inc.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in July 2023, FINRA sanctioned Murat Kartal, suspending him from all capacities for 10 months, beginning July 17, 2023 and ending May 16, 2024. The FINRA sanction states, “Without admitting or denying the findings, Kartal consented to the sanction and to the entry of findings that he unsuitably and excessively traded a senior customer’s account. The findings stated that Kartal engaged in quantitatively unsuitable trading in the senior customer’s account resulting in a high turnover rate, high annualized cost-to-equity ratio, and significant losses. Kartal’s trading in the customer’s account generated total trading costs of $206,667, including $189,446 in commissions, and caused $51,959 in realized losses. Kartal’s customer routinely followed his recommendations to engage in high frequency trading and, as a result, Kartal exercised de facto control over the account. Kartal’s trading in the customer’s account was excessive and unsuitable given the customer’s age and investment profile.”
We Help Investors Recover Investment Losses
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.
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