The Financial Industry Regulatory Authority has barred a former Spartan Capital representative for failing to provide information, including texts, regarding potential excessive trading in a customer's account.
Between July 2013 and December 2023, Ronald G. Smith was registered with FINRA as a general securities rep with Spartan Capital Securities LLC.
Since January 2024, Smith has been registered with FINRA as a general securities rep with Sanford Bernstein, according to BrokerCheck.
Smith also has a pending customer dispute, with damages requested at $250,000, his BrokerCheck profile shows.
The complaint, filed in February 2024, alleges "Breach of Fiduciary Duty, Negligence, Failure to Supervise, Failure to Recommend Suitable Investments, Failure to Act in Claimants Best Interest, Unauthorized Trading, Misrepresentation and Omission of Material Facts" tied to a private placement product while Smith was affiliated with Spartan Capital.
On Aug. 13, 2025, in connection with an investigation into Smith’s potential excessive trading of customer accounts at Spartan Capital, FINRA sent Smith a request for information and documents pursuant to FINRA Rule 8210, according to FINRA's order.
The matter originated from a FINRA cycle exam of Spartan Capital.
FINRA sought, among other items, "financial records and electronic communications, including text messages that Smith exchanged with his customers and other persons associated with Spartan Capital," according to FINRA.
"While Smith submitted a partial response, he did not provide all of the requested information and documents, including his electronic communications," the order states.
As stated during his counsel’s phone call with FINRA on Oct. 29, "and by this agreement, Smith acknowledges that he received FINRA’s request and will not provide the remaining information or documents requested," the order states.
By refusing to provide the information and documents as requested, Smith violated FINRA Rules 8210 and 2010.
Smith accepted and consented to FINRA's findings without admitting or denying them.
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