According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Nicholas Schiano (Schiano), currently associated with Spartan Capital Securities, LLC, has been subject to at least 6 disclosable events. These events include 4 customer complaints, 2 regulatory events. Several of those complaints against Schiano concern allegations of high frequency trading activity also referred to as churning or excessive trading among other securities laws violations.
FINRA BrokerCheck shows a final customer complaint on June 05, 2025.
On May 8, 2025, without admitting or denying the findings, Respondent entered into an Acceptance, Waiver and Consent (‘AWC’) with FINRA wherein Schiano consented to the entry of findings that between September 2017 and March 2022, he excessively traded the accounts of two senior customers with speculative investment objectives. Schiano’s trading resulted in high turnover rates and cost-to-equity ratios that exceeded the traditional guideposts of six and 20 percent, respectively, as well as significant losses. Between September 2017 and March 2022, Schiano recommended 102 transactions in the account of Customer A, a 67-year old small business owner, resulting in an annualized turnover rate of fourteen and an annualized cost-to-equity ratio of 65 percent, commissions of $40,515, and realized losses of $13,349. Between October 2017 and December 2018, Schiano and another representative recommended 31 transactions in the account of Customer B, a 70-year retiree, resulting in an annualized turnover rate of 18 and an annualized cost-to-equity ratio of 76 percent, commissions of $30,510 and realized losses of $48,895. Schiano agreed to a six-month suspension from associating with any FINRA member in all capacities, a fine in the amount of $5,000, and partial restitution of $55,770 plus interest.
FINRA BrokerCheck shows a final customer complaint on May 08, 2025.
Without admitting or denying the findings, Schiano consented to the sanctions and to the entry of findings that he willfully violated the Best Interest Obligation under Rule 15/- l(a)(l) of the Securities Exchange Act of 1934 (Reg BI) by recommending to two retail customers a series of trades that were excessive. The findings stated that both of the customers were seniors and relied on Schiano’s advice and routinely followed his recommendations and, as a result, Schiano exercised de facto control over the accounts. The customers paid $71,025 in commissions and suffered $62,244 in realized losses. The amount of restitution is equal to the total commissions charged to one of the customers and half of the commissions charged to the other, of whom Schiano and another registered representative both made recommendations and shared commissions.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $62,961.03 on May 03, 2021.
Time Frame: beginning 2014. Alleged Allegations: Unsuitable Investments, excessive commissions and churning.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $414,744.00 on December 23, 2020.
Churning and Qualitative and Quantitative Unsuitability; Alleged Allegations: Breach of Fiduciary Duty; Breach of Contract; Negligent Misrepresentation and Omissions. Activity was between November 2016 through August 2017.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $46,295.00 on May 18, 2020.
Allegations of Unsuitability, Over concentration, Excessive Trading.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $241,727.00 on January 28, 2020.
Time Frame: No time frame mentioned/associated with individual claimant in Statement of Claim (SOC).\<char_lb_r>\, Allegations: Alleging misrepresentation and unsuitable recommendations
When brokers engage in churning, or excessive trading, they often rapidly buy and sell securities, sometimes even the same stock repeatedly, within a short span of time. Often times the account will completely “turnover” every month with different securities. The sole purpose of this kind of investment trading activity in the client’s account is to generate commissions that benefit the broker, not the investor. Securities regulators consider churning to be a distinct form of investment fraud. The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements. Certain commonly used measures and ratios used to determine churning help evaluate a churning claim. These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.
According to newsources, a study revealed that 7.3% of financial advisors had a customer complaint on their record when records from 2005 to 2015 were examined. Brokers must publicly disclose reportable events on their BrokerCheck reports that include customer complaints, IRS tax liens, judgments, investigations, terminations, and criminal cases. In addition, research has shown a disturbing pattern with troublesome brokers where brokers with high numbers of customer complaints are not kicked out of the industry but instead these brokers are sifted to lower quality brokerage firms with loose hiring practices and higher rates of customer complaints. These lower quality firms may average brokers with five times as many complaints as the industry average.
Schiano entered the securities industry in 2001. Schiano has been registered as a Broker with Spartan Capital Securities, LLC since 2017.
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.