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Spartan Broker Albert Foronda Suspended, Fined $7,500
New York City broker Albert Foronda (CRD# 5737620) was recently the subject of disciplinary action by the Financial Industry Regulatory Authority, sanctioning in connection to allegations of unauthorized trading. A representative of Spartan Capital Securities who was formerly associated with Worden Capital Management in Guaynabo, Foronda was issued a 45-day suspension and a fine of $7,500.
According to a Letter of Acceptance, Waiver and Consent (No. 2017055395801) dated January 2020, Albert Foronda was associated with Worden Capital Management as a General Securities Representative from 2016 until August 2017, then with Spartan Capital Securities as a General Securities Representative starting in August 2017. From June 2017 until August 2017, FINRA states, he executed eight unauthorized transactions while associated with Worden; then, while associated with Worden from March 2017 until August 2017, and while associated with Spartan beginning in December 2017, he executed discretionary transactions in two customers’ accounts without proper authorization. As for the unauthorized transactions, FINRA’s findings state that he executed four trades in a Worden customer’s account: selling a security and using the proceeds to purchase shares in another security; selling that security at a loss; and purchasing a security, then cancelling the trade and reversing the commission charges. He then allegedly executed four unauthorized trades in another customer’s account when he “purchased shares in one security through two transactions and later sold shares of the same security in two separate transactions,” incurring losses of $2,765 for the customer.
As for the discretionary transactions, FINRA states that while associated with Worden between March and August 2017, he effected 48 such transactions in two accounts of two married customers. Then, in December 2017, he allegedly exercised discretion while effecting a sale in a customer’s account. In none of these cases, FINRA states, did he have written authorization from the customers to exercise discretion, nor the firms’ acceptance of the accounts as discretionary. As a result of the foregoing alleged conduct, he was suspended from associating with FINRA for 45 days. He was also ordered to pay a fine of $7,500 and restitution of $2,765, plus interest.
Albert Foronda has been registered with Spartan Capital Securities in New York, New York since 2017. His previous registrations include Worden Capital Management, Legend Securities, and National Securities Corporation. He has passed three securities industry qualifying examinations and his BrokerCheck report lists 40 state securities licenses. (Information current as of May 20, 2020.)