Todd Michael Venturino, Broker with Spartan Capital Securities, Named in FINRA Complaint Alleging Excessive and Unsuitable Trading

INVESTORS: Spartan Capital Securities broker Todd Michael Venturino was named in a FINRA complaint alleging excessive and unsuitable trading.

Todd Michael Venturino (CRD: 2939050) is registered as a broker and investment adviser with Spartan Capital Securities, where he’s been employed since 2022. Previously, Venturino was registered as a broker and investment adviser with UBS Financial Services from 2014 until 2022.

Venturino has twenty disclosures on his BrokerCheck report. Three disclosures relate to Venturino’s personal financial matters. One customer dispute filed against Venturino was closed with no action taken.

August 2022 Regulatory Judgment

Status: Pending

Initiated By: FINRA

Allegations: Venturino was named a respondent in a FINRA complaint alleging that he willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and violated FINRA Rule 2020. The complaint alleges that Venturino exercised de facto control of the trading in his customers’ accounts, controlling the volume and frequency of trading in the accounts, deciding what securities to buy and sell, the quantity of each transaction, and the timing of each transaction. Venturino’s customers relied on him to make securities recommendations and consistently followed his recommendations. Venturino also exercised control in instances when he made unauthorized transactions in the customers’ accounts. Venturino’s trading in these accounts was excessive and quantitatively unsuitable for each of the customers based on their investment profiles as evidenced by the high turnover rates and cost-to-equity ratios, the use of short-term, in-and-out trading, the frequency of the transactions, and the transaction costs incurred. Venturino’s trading in resulted in annualized cost-to-equity ratios between 34.67 percent and 164.75 percent and annualized turnover rates between 8.39 and 49.61. Venturino acted with scienter. In churning these customers’ accounts, Venturino acted with the intent to defraud or, at the very least, with reckless disregard of his customers’ interests, seeking to maximize his own compensation in disregard of the interests of his customers. Venturino deliberately incurred unreasonably high trading costs in these customers’ accounts, which made it virtually impossible for the accounts to be profitable. Indeed, Venturino’s trading caused approximately $1,028,389 in cumulative customer losses and caused the customers to pay $518,313 in commissions, markups, markdowns, margin interest and other trading costs. Conversely, Venturino received more than $325,000 from trading in the accounts. The complaint also alleges that Venturino traded in the customers’ accounts in an excessive and unsuitable manner. The complaint further alleges that Venturino executed transactions in the non-discretionary accounts of his customers, without the customers’ prior authorization or consent.

February 2022 Customer Dispute

Status: Settled

Allegations: Time Frame: unspecified. Claimants allege unauthorized trading; churning; fraud and misrepresentation.

Damage Amount Requested: $250.000.00

Settlement Amount: $40,000.00

March 2021 Customer Dispute

Status: Settled

Allegations: Time frame: unspecified. Claimants allege unsuitable investments, misrepresentation, breach of financial duty, breach of contract.

Settlement Amount: $600,000.00

Broker Comment: On 9.16.2022 Aegis settled this matter with claimants, Mr. Venturino was not part of the settlement process nor did Mr. Venturino make a contribution in the settlement amount. Aegis amended Mr. Venturino’s Form U5 stating that they were in receipt of an arbitration alleging unsuitable investment strategies. Mr. Venturino, his employer and his attorney have all made formal demands for a copy of the claim and supporting documentation; but the reporting firm adamantly refuses to provide anything. The reporting Firm has done this on multiple occasions with other complaints and Mr. Venturino cannot confirm the nature of the allegations or defend the complaint, if indeed there is any.

January 2021 Customer Dispute

Status: Settled

Allegations: Time frame: June 2015 – June 2017. Claimants allege unsuitable investment strategy.

Damage Amount Requested: $50,000.00

Settlement Amount: $39,000.00

Broker Comment: Aegis amended Mr. Venturino’s Form U5 stating that they were in receipt of an arbitration alleging unsuitable investment strategies. Mr. Venturino, his employer and his attorney have all made formal demands for a copy of the claim and supporting documentation; but the reporting firm adamantly refuses to provide anything. The reporting Firm has done this on multiple occasions with other complaints and Mr. Venturino cannot confirm the nature of the allegations or defend the complaint, if indeed there is any. On 3.29.2021 Aegis settled this case with the Claimant, without Mr. Venturino knowledge and/or participation. Mr. Venturino had no contribution in the settlement of this matter.

July 2020 Customer Dispute

Status: Settled

Allegations: Time frame: December 2015 to June 2017. Allegations: Claimants allege unauthorized trading and Breach of contract.

Settlement Amount: $175,000.00

May 2020 Customer Dispute

Status: Settled

Allegations: Time period: 2015 to present. Claimants allege breach of fiduciary duty, negligence, unsuitable investments, breach of contract, churning.

Damage Amount Requested: $985,000.00

Settlement Amount: $235,000.00

Broker Comment: SCS DISPOSITION: 11.11.2022 – RR was withdrawn prior to settlement between Claimant and Firm. Firm cannot correct the DRP to remove Monetary Damages. Per FINRA Disclosure Review instructions: Aegis Corp settled this matter with the customer on 9.2.2021 for $235000.00. Aegis Corp settled this matter without my knowledge or participation. The matter is in a pending status with my current employer Spartan Capital Securities.

February 2020 Customer Dispute

Status: Settled

Allegations: Time Frame Unspecified. Product Not Found. Allegation of unsuitability

Damage Amount Requested: $225,000.00

Settlement Amount: $65,000.00

Broker Comment: Prior Firm amended Form U5 stating that they were in receipt of an arbitration alleging “sales practice violations”. Both the applicant, new employing firm along with counsel made formal demands for a copy of the arbitration and supporting documentation; but the reporting firm adamantly refused to provide anything, including identification of any allegations and if it was in fact against the applicant. The matter is now settled without my knowledge or participation. I was unable to confirm the nature of the allegations or defend this complaint.

December 2019 Customer Dispute

Status: Settled

Allegations: Time frame 2013 to Present. Claimant alleges unsuitable investments and high pressure sales tactics.

Damage Amount Requested: $150,000.00

Settlement Amount: $62,500.00

Broker Comment: Aegis amended Mr. Venturino’s Form U5 stating that they were in receipt of an arbitration alleging unsuitable investment strategies. Mr. Venturino, his employer and his attorney have all made formal demands for a copy of the claim and supporting documentation; but the reporting firm adamantly refuses to provide anything. The reporting Firm has done this on multiple occasions with other complaints and Mr. Venturino cannot confirm the nature of the allegations or defend the complaint, if indeed there is any.

September 2018 Customer Dispute

Status: Final

Allegations: Allegations of churning, negligence and unsuitability,failure to supervise, breach of fiduciary duty. From all claimants against all respondents.

Damage Amount Requested: $14,745,513.00

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 15 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.

September 2018 Customer Dispute

Status: Final

Allegations: Time Frame: 12/24/2014 – 02/28/2018. Claimant alleges RR engaged in Churning, Unsuitable Transactions and Misrepresentation.

Damage Amount Requested: $204,359.83

Broker Comment: Rep strongly denies all allegations. Customer was an active and knowledgeable participant in all investments, and he authorized each and every transaction. Customer is attempting to recover losses through litigation.

July 2018 Regulatory Judgment

Status: Final

Initiated By: FINRA

Allegations: Respondent Venturino failed 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.

Resolution: Letter

Sanctions: Suspension

Registration Capacities Affected: All Capacities

Duration: Indefinite

Start Date: 7/17/2018

End Date: 7/18/2018

Regulator Statement: Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Venturino is suspended on July 17, 2018, for 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. Suspension lifted on July 18, 2018.

Broker Comment: Applicant’s Counsel was in the process of arranging for installment payments when it became clear Claimant had no intention of doing so. RR then filed the motion to vacate, and FINRA lifted the suspension.

February 2018 Customer Dispute

Status: Settled

Allegations: Time Frame: Unspecified. Claimaint alleges unauthorized trading and unsuitable investment recommendations

Damage Amount Requested: $1,280,623.00

Settlement Amount: $300,688.16

Broker Comment: Mr. Venturino was dismissed as well as all respondents with prejudice.

July 2017 Customer Dispute

Status: Settled

Allegations: Time Frame 11/3/2016 to 6/27/2017, Client alleges unauthorized trading in various securities.

Damage Amount Requested: $33,489.38

Settlement Amount: $16,500.00

Broker Comment: The first time I found out about the alleged complaint was when disclosure review reported it to the Firm. I have never seen or been spoken to about this alleged complaint. My former firm never contacted me. I categorically deny any of the allegations.

May 2017 Customer Dispute

Status: Final

Allegations: Time Frame: Unspecified. Claimant alleges unsuitable transactions, excessive trading and churning.

Damage Amount Requested: $55,855.00

April 2016 Customer Dispute

Status: Settled

Allegations: Time Frame: June 2014 to January 2016. Claimant alleges excessive activity, unauthorized trading, breach of fiduciary duty.

Damage Amount Requested: $515,000.00

Settlement Amount: $142,500.00

March 2013 Customer Dispute

Status: Settled

Allegations: Plaintiff, a wealthy sophisticated investor, filed a kitchen sink inspired statement of claim alleging unsuitability, unauthorized trading, churning, violations of federal and state securities laws, common law fraud, failure to supervise, gross negligence, ordinary negligence, breach of contract, control person liability and respondent superior. Respondents deny the allegations and intend to vigorously contest these claims.

Damage Amount Requested: $140,368.71

Settlement Amount: $76,500.00

The Sonn Law Group is currently investigating allegations surrounding Todd Michael Venturino. 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.