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Former Spartan Capital Securities Broker Phillip Marchese Suspended by FINRA

Philip Marchese (CRD#: 5905008) is a previously registered Broker.

Broker’s Background

He entered the securities industry in 2011 and previously worked for Spartan Capital Securities, LLC; Joseph Stone Capital, LLC; Spartan Capital Securities, LLC; Worden Capital Management, LLC; Legend Securities, Inc.; Joseph Gunnar & Co.; and Brookstone 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 April 2022, FINRA sanctioned Philip Marchese, ordering him to pay restitution of $50,000, and suspending him from all capacities for 12 months, beginning May 2 2022 and ending May 1, 2023. The FINRA sanction states, “Without admitting or denying the findings, Marchese consented to the sanctions and to the entry of findings that he excessively traded customer accounts. The findings stated that Marchese’s customers routinely followed his recommendations and, as a result, he exercised control over the de facto customers’ accounts. Marchese’s trading in these customers’ accounts was excessive and unsuitable given the customers’ investment profiles. As a result of Marchese’s excessive trading, the customers suffered collective realized losses of $246,327 while paying total trading costs of $244,645, including commissions of $222,692.”

For a copy of the FINRA sanction, click here.

In addition, Philip Marchese has been the subject of one customer complaint:

  • July 2015 — “STATEMENT OF CLAIM ALLEGES: NEGLIGENCE, WIDELY UNSUITABLE TRANSACTIONS, NEGLIGENT MANAGEMENT OF ACCOUNTS AND REGISTERED REPRESENTATIVES, VIOLATION OF FINRA RULE 2010 AND FINRA RULE 2020, VIOLATION OF THE MINNESOTA SECURITIES ACT, BREACH OF FIDUCIARY DUTY, COMMON LAW FRAUD AND MISREPRESENTATION, BREACH OF CONTRACT, AND RESPONDENT SUPERIOR.” The customer dispute was settled for $50,000.

For a copy of Philip Marchese’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.

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. 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

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]