Spartan Capital Securities Loses Motion to Vacate Arbitration Award

In 2019, the U.S. District Court for the District of South Dakota confirmed an arbitration award in favor of investors who sued Spartan Capital Securities.  A FINRA arbitration panel entered in award in favor of a couple who sued Spartan Capital, alleging unsuitable investment recommendations, churning, fraud, and breach of fiduciary duty.  The investors alleged that the conduct involved broker Nathan E. Gainer.  After an arbitration hearing, the arbitrators awarded the investors $315,000 in compensatory damages.

Spartan Capital sought to vacate the arbitration award in South Dakota.  However, the court upheld the arbitration award.

Brokerage firms like Spartan Capital Securities have a responsibility to adequately supervise all representatives who are registered through their firm.  Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies.  When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.

Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Seattle, Washington; and Ann Arbor, Michigan.  We represent investors in FINRA arbitration proceedings in all 50 states, including numerous investors in South Dakota in the past. Our attorneys have represented over one thousand investors against many brokerage firms in the past.