Thomas James Baumann, Formerly of Spartan Capital Securities, Under Investigation by FINRA Following Allegations of Churning

INVESTORS: Former Spartan Capital broker Thomas James Baumann is under investigation by FINRA following allegations of churning, excessive trading, and unsuitable investment recommendations.

Thomas James Baumann (CRD: 5254392) was registered as a broker with Spartan Capital Securities from 2013 until 2022. 

Baumann has twelve disclosures on his BrokerCheck report. Two customer disputes filed against Baumann were denied. Six of the disclosures relate to personal financial judgments.

March 2022 Investigation

Initiated By: FINRA

Description of Investigation: FINRA Case #20180564903. On March 25, 2022, FINRA made a preliminary determination to recommend that disciplinary action be brought against Thomas Baumann alleging willful violation of Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5, and FINRA Rules 2020 and 2010 in that Baumann churned customers’ accounts; and violation of FINRA Rules 2111 and 2010 in that Baumann excessively traded customers’ accounts and recommended an unsuitable active trading strategy to customers.

March 2020 Customer Dispute

Status: Settled

Allegations: Time Period: January 2018 thorough July 2019. Allegations: Unsuitable Unauthorized Investments, Negligence, Misrepresentation, Breach of Contract, Breach of Fiduciary Duty.

Damage Amount Requested: $42,013.24

Settlement Amount: $9,999.99

Broker Comment: Rep strongly denies these allegations. Claimant and respondent resolved this matter in settlement. 

January 2020 Customer Dispute

Status: Settled

Allegations: Time Frame: No Time frame mentioned/associated with individual claimants in Statement of Claim (SOC) Allegations: Alleging misrepresentation and unsuitable recommendations

Damage Amount Requested: $767,545.00

Settlement Amount: $18,000.00

Broker Comment: The Claims were filed by Cold Spring Advisory – Non-Attorney Representatives (NARS). NARS have no ethical code or constraints like attorneys do, and do not face potential sanctions from any regulatory or licensing body like a state bar association. Essentially, this system exposes the investor potential victimization, with little chance of recovering damages caused by an unscrupulous or negligent NAR.” The NARs are specifically attuned to the FINRA guidance and have weaponized the FINRA reporting requirements against individuals such as applicant, by making totally baseless, unfounded, unsupportable, and factually false allegations against them and are being permitted to do so with no regard for the investor or the applicant.

September 2018 Customer Dispute

Status: Settled

Allegations: Allegation of churning, unsuitable transactions, misrepresentation, breach of fiduciary duty.

Damage Amount Requested: $6,645,956.00

Settlement Amount: $55,000.00

Broker Comment: The registered representative vehemently denies all claims set forth. The client was aware of any risk involved, commission charged and was a sophisticated investor willing to take risk. There are approximately 10 claimants of which all alleged the same exact allegations against the various respondents which is factually impossible and clearly erroneous. The claims are filed by a non-lawyer representative of Cold Spring advisory. Cold Spring Advisory is owned and operated by individuals of whom are barred from the securities industry. These individuals are profiting by misleading the public into believing there was wrong doing if losses occurred and attempting to extort money from broker-dealers. Cold spring is soliciting claims against the brokerage industry with no regard for the validity of the claim.

If you have any information about Thomas James Baumann that you would like to share or discuss, please call our firm for a confidential consultation. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.