Publicly available records recently provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/adviser Albert Foronda (CRD # 5737620) currently with New York, NY based Spartan Capital Securities, LLC (CRD # 146251) was recently sanctioned by FINRA’s Department of Enforcement. The sanction occurred during the course of an investigation into the fraud of unauthorized transactions in customer accounts. The law Office of Kevin J. Deloatch, Esq. is interested in speaking with investors who have complaints regarding Mr. Foronda.
Background of Albert Foronda
Mr. Foronda first became registered in the securities industry in February 2010. Prior to being registered with Spartan Capital Securities, LLC he had been registered with Worden Capital Management LLC (CRD # 148366), from November 2016 until August 2017, Legend Securities, Inc. (CRD # 44952) from April 2011 to November 2016 and National Securities Corporation (CRD # 7569) from February 2010 to March 2011.
Findings and Conclusions
According to FINRA letter of Acceptance, Waiver and Consent (AWC) dated January 17, 2020, Mr. Foronda consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between March 2017 and August 2017, while registered with Worden, [Mr.] Foronda effected 48 discretionary transactions in two accounts of married customers RR and JR”;
- “[Mr.] Foronda did not have written authorization from the customers to exercise discretion, and Worden did not accept the accounts as discretionary accounts”;
- “On December 11, 2017, while registered through Spartan, [Mr.] Foronda exercised discretion while effecting the sale of a security in customer BB’s account”;
- “[Mr.] Foronda did not have written authorization from BB to exercise discretion, and Spartan did not accept the account as a discretionary account”; and
- Mr. Foronda violated NASD Rule 2510(b) regarding discretionary trading and accounts; and FINRA Rule 2010 regarding standards of commercial honor.
FINRA Sanctions Albert Foronda
As a result of the above findings and conclusions of violations, FINRA’s January 17, 2020 AWC also indicates that Mr. Foronda consented to the following sanctions:
- A 45-calendar-day suspension in all capacities from association with any FINRA member firm;
- Restitution of $2,765.00, plus interest; and
- A fine in the amount of $7,500.00.
Albert Foronda has a History of Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck reveals Mr. Foronda has a history of customer complaints and/or arbitrations alleging fraud as described below:
- On May 8, 2019 a customer initiated arbitration was filed and received by Spartan Capital Securities, LLC. The Complaint alleged damages in the amount of $650,000.00 for unsuitability, excessive trading and negligence. The arbitration is currently pending; and
- On July 28, 2017 a customer initiated a written complaint received by Worden Capital Management, LLC. The complaint alleged damages in the amount of $17,228.90 for unauthorized trades that occurred between July 11, 2017 and July 27, 2017. The complaint was settled on October 11, 2017 in the amount $14,000.00.
If you or someone you know has or had a brokerage account with Albert Foronda and have concerns regarding losses in your investments or possible fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.