John Palma: $500K Complaint Against Barred SW Financial Advisor

Former New York City financial advisor John Palma (CRD# 6848651) was recently sanctioned and barred in connection with alleged rule violations. Financial Industry Regulatory Authority records show that he was most recently registered as a broker with Spartan Capital Securities, having previously been registered with SW Financial and Worden Capital.

A Letter of Acceptance, Waiver, and Consent (No. 2019060753511) describes FINRA’s disciplinary action against Mr. Copeland. Filed in March 2025, it describes findings that he refused to cooperate with a FINRA examination. The matter originated during a routine examination of Worden Capital, according to the AWC Letter, during which FINRA sent Mr. Palma a request to produce information and documents. As FINRA notes, Rule 8210 empowers it to require persons under its jurisdiction to provide information and documents with respect to matters under its investigation. The rule also forbids such persons from failing to comply with such requests. Mr. Palma allegedly informed FINRA via counsel that he had received its request but would not comply. As a result, FINRA found that he violated Rule 8210 as well as Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade. As a result, FINRA barred him from associating with any member firm in any capacity.

Mr. Palma’s BrokerCheck report discloses several investor complaints. The most recent, filed in February 2024, alleges that as a representative of Spartan Capital, he made excessive trades. The pending complaint alleges damages of $500,000.

In a statement included with the pending complaint’s disclosure, Mr. Palma describes the allegations as meritless and notes that he plans to defend himself vigorously against them. “Every transaction that was effected in Claimant’s account was authorized and funded by Claimant,” he writes. “At all times Claimant was in complete control of all investment decisions. Claimant is an experienced and sophisticated investor who makes all investment decisions in his account… The Claimant received and executed activity letters confirming his awareness of all of the activity in his account as well as the costs associated with his chosen trading strategy.”

A second investor complaint, filed in 2022, alleged that as a representative of SW Financial, he recommended unsuitable investments, acted negligently, engaged in unjust enrichment, and breached his fiduciary duty. The complaint evolved into an arbitration proceeding before a FINRA panel, which ordered SW Financial to pay an award of $10.3 million to the claimants. “SW Financial was the only named respondents in the matter,” Mr. Palma wrote in a statement included with the disclosure. Moreover, the allegations are vague and ambiguous, and I am not mentioned at all in the statement of claim.”

According to the Financial Industry Regulatory Authority, John Palma holds seven years of securities industry experience. Most recently based in New York City, he was last registered with Spartan Capital from 2022 until 2025. His previous registrations include SW Financial and Worden Capital. He has been barred from acting as a broker. (Information current as of March 31, 2025.)

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