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FINRA Suspends NYC Financial Franz Lambert: Excessive Trading
Former Spartan Capital Securities financial advisor Franz Lambert (CRD# 4463792) has been suspended over allegations he excessively traded in a senior customer’s account. Financial Industry Regulatory Authority records show that he was last registered as a broker in New York City.
According to a Letter of Acceptance, Waiver, and Consent (No. 2019060753504) issued in July 2022, FINRA found that Mr. Lambert engaged in excessive, unsuitable trading in a senior customer’s account from November 2016 through June 2019. Specifically, FINRA found, he executed 200 transactions in the customer’s account, resulting in an annualized turnover rate of 15.10 as well as an annualized cost-to-equity ratio of 67.63%. His allegedly unsuitable trading “generated total trading costs of $308,983, including $289,660 in commissions, and caused $320,906 in realized losses,” according to the AWC Letter. FINRA found that his trading activities violated FINRA Rules 2111 and 2020, suspending him for five months from associating with any FINRA member in any capacity and fining him $5,000.
Mr. Lambert’s BrokerCheck report discloses several recent investor complaints. A complaint filed in 2019, for instance, alleged that he engaged in negligence, breached his fiduciary duty, breached contract, and made negligent misrepresentations and omissions. In 2020 the complaint resulted in a settlement of $29,999.98. A second complaint filed in 2019 alleged that as a representative of Worden Capital Management, he breached his fiduciary duty, acted negligently, misrepresented material information, committed fraud, engaged in churning, effected unauthorized transactions, and violated Iowa securities law. The pending complaint alleges damages of $781,500.57.
According to the Financial Industry Regulatory Authority, Franz Lambert holds 17 years of securities industry experience. Last based in New York City, he was most recently registered with Spartan Capital Securities. His past registrations include Worden Capital Management, Legend Securities, Dawson James Securities, Laidlaw & Company, Clark Dodge & Company, John Thomas Financial, Paulson Investment Company, Jesup & Lamont Securities, VFinance Investments, Broad Street Securities, Brookshire Securities Corporation, Newbridge Securities Corporation, Ladenburg Thalmann & Company, and Global Trading Group. His credentials include the passage of four securities industry qualifying examinations: the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; and the Uniform Combined State Law Examination, or Series 66. He currently holds no state licenses. (Information current as of July 13, 2022.)
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