John Palma – Spartan Capital- – Barred after Excessive Trading Allegations
According to the Financial Industry Regulatory Authority (FINRA), financial advisor John Palma (CRD#: 6848651) was barred from working as a broker on March 25th, 2025. Palma reportedly refused to produce information and documents requested in an investigation by the self-regulator, leading to the bar.
According to his FINRA BrokerCheck report, John Palma has three customer complaints on his record. Allegations include excessive trading, unauthorized trading, unsuitability, breach of fiduciary duty, breach of contract, negligence, unjust enrichment, strict liability, and failure to supervise.
FINRA BrokerCheck: John Palma
The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.
Palma was reportedly registered with the following firms among others during his career in the securities industry:
09/15/2022 – 03/17/2025, SPARTAN CAPITAL SECURITIES, LLC (CRD#:146251) NEW YORK, NY
12/10/2019 – 09/14/2022, SW FINANCIAL (CRD#:145012) FINRA expelled the firm on 05/12/2023 NEW YORK, NY
09/19/2017 – 12/17/2019, WORDEN CAPITAL MANAGEMENT LLC (CRD#:148366) FINRA expelled the firm on 07/25/2022 New York, NY
Broker Misconduct and Failure to Supervise
Broker misconduct occurs when financial advisors engage in unethical or fraudulent practices, such as misrepresenting investments, unauthorized trading, or misusing client funds. FINRA-registered broker-dealers have a duty to supervise their brokers to prevent such misconduct.
If the firm fails to supervise its brokers properly, it can be held liable through FINRA arbitration. Investors who suffer losses due to a broker’s misconduct can file a claim against both the broker and the firm, alleging failure to supervise. If a firm neglects this duty, it may be ordered to compensate the affected investor through an arbitration award.
Class Action Lawsuit vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
FINRA Lawsuits
If you have suffered investment losses with John Palma, the securities attorneys at the White Law Group may be able to help you by filing a FINRA lawsuit. Please call our offices at (888) 637-5510 for a free consultation. We take cases in all 50 states including New York.
National Securities Attorneys
The White Law Group, LLC is a national law firm in securities fraud, securities arbitration, investor protection, and securities regulation and compliance. With offices in Chicago, Illinois and Seattle, Washington, the firm is dedicated to assisting investors across all 50 states with claims against their brokerage firms. Since its founding in 2010, The White Law Group has handled over 800 FINRA arbitration cases.
Last modified: April 4, 2025
