Michael Dugan – Spartan Capital- Suspended after Excessive Trading Allegations
According to public records on April 1st, 2025, Financial Industry Regulatory Authority (FINRA), the securities regulator has suspended New Jersey financial advisor Michael Dugan from working as a broker for seven months. Dugan reportedly willfully violated the Best Interest Obligation under Rule 15l-1(a)(1) of the Securities Exchange Act of 1934 (Reg BI) by allegedly recommending to retail customers a series of trades that were excessive, unsuitable, and not in the customers’ best interests.
The findings stated that the customers, a retiree and a 65-year-old, relied on Dugan’s advice and routinely followed his recommendations and, as a result, Dugan exercised de facto control over the accounts. Dugan’s trading in the customers’ accounts reportedly generated a total of $143,217 in commissions and caused a total of $216,772 in realized losses, according to FINRA.
FINRA BrokerCheck: Michael Dugan
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.
Michael Dugan reportedly has two customer complaints on his broker record. Allegations include unauthorized trading, self-dealing, misrepresentation, churning and excessive trading among others. Dugan was reportedly registered with 30 firms during his 23 years in the securities industry, including the following:
07/11/2024 – 09/12/2024 ALEXANDER CAPITAL, L.P. (CRD#:40077) RED BANK, NJ
04/17/2023 – 04/16/2024 CRAFT CAPITAL MANAGEMENT LLC (CRD#:171350) Red Bank, NJ
03/06/2017 – 05/01/2023 SPARTAN CAPITAL SECURITIES, LLC (CRD#:146251) NEW YORK, NY
09/22/2015 – 04/15/2016 CHELSEA FINANCIAL SERVICES (CRD#:47770) STATEN ISLAND, NY
08/04/2015 – 09/23/2015 AVENIR FINANCIAL GROUP (CRD#:148490) FINRA expelled the firm on 09/19/2016 NEW YORK, NY
10/01/2014 – 08/04/2015 CHELSEA FINANCIAL SERVICES (CRD#:47770) STATEN ISLAND, NY
09/13/2013 – 10/14/2014 AVENIR FINANCIAL GROUP (CRD#:148490) FINRA expelled the firm on 09/19/2016 NEW YORK, NY
Broker Red Flags and Failure to Supervise
A broker who has been registered with multiple firms raises serious red flags. While some movement between firms is normal in the industry, such a high rate of turnover is far from typical and may suggest underlying issues such as terminations for cause, regulatory scrutiny, or patterns of misconduct.
Brokers who frequently change firms may be trying to stay ahead of customer complaints, internal investigations, or disciplinary actions. This behavior is often associated with problematic sales practices like churning, unsuitable investment recommendations, or the sale of high-risk, high-commission products. If many of the broker’s previous firms were small, obscure, or expelled by FINRA, that may also indicate a troubling history.
When financial advisors engage in unethical or fraudulent practices, such as misrepresenting investments, unauthorized trading, or misusing client funds they can be held responsible for investment losses. 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.
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 Michael Dugan and Spartan Capital, 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
