According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker John Lowry (Lowry), currently associated with Spartan Capital Securities, LLC, has at least 2 disclosable events. These events include 2 customer complaints, alleging that Lowry recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $200,000.00 on June 09, 2025.
Failure to Supervise
FINRA BrokerCheck shows a pending customer complaint on May 27, 2025.
In connection with his investments in certain funds, the customer alleges that his registered representative, not Mr. Lowry, made certain misrepresentations that the funds purchased shared of identified private issuers from the secondary market despite the customer receiving offering documents explicitly disclosing that the funds would purchase such shares from secondary sources or invest in interests of investment funds, special purpose vehicles or other entities that held such shares or investment rights. There is no allegation that the customer ever spoke with Mr. Lowry in connection with investing in any fund. The customer asserts direct claims against the funds or other legal claims against “Respondents”; however, the only cause of action that directly identifies Mr. Lowry is the respondeat superior cause of action based on his position at the managing member of the funds.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Finally, the advisor must use their knowledge of the first two elements to consider reasonably available investment option alternatives and come to the conclusion that there is a reasonable basis to believe that the recommendation or advice being provided is in the retail investor’s best interest.
An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Lowry entered the securities industry in 2001. Lowry has been registered as a Broker with Spartan Capital Securities, LLC since 2008.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.