Investors should be aware of a recent case involving financial advisor Albert Foronda and Spartan Capital Securities, LLC (CRD 146251). On August 31, 2023, Foronda was suspended by the Financial Industry Regulatory Authority (FINRA) for failing to comply with an arbitration award or settlement agreement. This case is a stark reminder of the seriousness of such allegations and their potential impact on investors.
Understanding the Allegation’s Seriousness and Implications
Table of Contents
Foronda’s suspension is a result of his failure to comply with an arbitration award or settlement agreement, or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance. This is a serious violation of FINRA rules, which are designed to protect investors and maintain the integrity of the financial industry.
As a result of this violation, Foronda’s registration capacities have been affected in all capacities. The suspension is indefinite, continuing until the required payment is made or discharged. This could significantly impact his ability to serve his clients and potentially disrupt their financial planning and investment strategies.
Decoding the FINRA Rule
The rule in question is Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554. These rules require financial advisors to comply with arbitration awards or settlement agreements and to respond satisfactorily to FINRA requests for information regarding compliance status.
In simple terms, this means that if a financial advisor is found to have violated an agreement or failed to meet certain standards, they must take the necessary steps to correct the situation. Failing to do so can result in serious consequences, such as suspension.
Why This Matters for Investors
As investors, it’s crucial to understand that the actions of financial advisors can directly impact your investments. A financial advisor who fails to comply with arbitration awards or settlement agreements may not be acting in your best interests. This could put your investments at risk and potentially lead to financial losses.
Furthermore, a financial advisor’s suspension can disrupt the management of your investments. If your advisor is suspended, they may not be able to provide the services you rely on for your financial planning and investment strategies.
Red Flags for Financial Advisor Malpractice
Investors should be aware of red flags that may indicate financial advisor malpractice. These can include a history of regulatory violations, frequent job changes, customer complaints, and failure to comply with arbitration awards or settlement agreements.
If you suspect that your financial advisor may be engaging in malpractice, it’s important to take action. You may be able to recover your losses through FINRA Arbitration, a dispute resolution process designed to help investors recover losses caused by financial advisor misconduct.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Albert Foronda and Spartan Capital Securities, LLC. With over 50 years of experience and a success rate of 98%, they have successfully recovered financial losses for investors.
Haselkorn & Thibaut offers free consultations and operates on a “No Recovery, No Fee” policy. If you have been affected by this case or have concerns about your financial advisor, you can reach them at their toll-free consultation number, 1-800-856-3352.
For more information about Albert Foronda’s case, you can refer to his FINRA CRD number 5737620.
