The Financial Industry Regulatory Authority has suspended a rep for five months for excessive and unsuitable trading in a senior business owner's account, violating Regulation Best Interest.
The matter originated from a FINRA cycle examination of Spartan Capital.
Between October 2019 and April 2022, Spartan Capital rep Jesse Krapf recommended a series of trades in a senior customer's account that were excessive, unsuitable and not in the customer's best interest, according to FINRA's order.
During that time period, the business owner "relied on Krapf's advice and routinely followed his recommendations," FINRA said. "As a result, Krapf exercised de facto control over the account."
Krapf recommended "in-and-out trading to the customer, even when the price of his recommended securities did not materially change," the order states.