ChapmanAlbin is investigating Frederick Joseph Cammarano III (CRD 2277307) after FINRA entered findings that he failed to reasonably investigate and address red flags of excessive trading and churning at Spartan Capital Securities, LLC. The records describe a firm-wide trading supervision problem involving customer accounts, senior investors, frequent margin use, and representatives whose activity generated substantial trading costs and losses. Cammarano’s most recent reported firm was Spartan Capital Securities, LLC. This page is based on public records, including FINRA BrokerCheck and regulatory documents, and explains the issues in plain English for investors who may be reviewing their accounts.

Broker Snapshot

CRD: 2277307
Most recent firm: Spartan Capital Securities, LLC
Registration status: Not currently registered, according to the provided BrokerCheck report
Primary concern: FINRA findings that Cammarano failed to reasonably investigate and address red flags of excessive trading and churning
Products mentioned in records: Unspecified securities; frequent use of margin is identified as a red flag
Potential investor claim themes: Failure to supervise, churning, unsuitable recommendations, Reg BI, elder financial abuse, and margin-related trading concerns

Key Facts and Public Records

• FINRA BrokerCheck Detailed Report for Frederick Joseph Cammarano III (CRD 2277307).
• FINRA Order Accepting Offer of Settlement, Disciplinary Proceeding No. 2018056490335, involving Spartan Capital Securities, LLC, Kim M. Monchik, Frederick Joseph Cammarano III, James Pecoraro, John Stapleton, and Michael Darvish.
• BrokerCheck identifies one final regulatory event involving FINRA and Spartan Capital Securities, LLC.
• Cammarano was previously registered with Spartan Capital Securities, LLC from November 2013 through December 2024, according to the provided BrokerCheck report.
• The FINRA order states that Cammarano served as Branch Manager for Spartan’s New York City office, Regional Branch Manager, and Head of Retail during relevant periods.
• FINRA imposed an 18-month suspension from associating with any FINRA member in all principal capacities and a $15,000 fine.
• The order describes widespread churning and excessive trading at Spartan, including 114 customer accounts, 53 senior-customer accounts, nearly $10 million in trading costs, and nearly $8 million in investment losses.

Further Details

FINRA information and key allegations

FINRA’s order states that, for more than four years, Spartan Capital Securities generated substantial revenue from trading activity that FINRA described as excessive, unsuitable, or churned in customer accounts. The order names Cammarano as a supervisor who was responsible for reviewing and supervising trading activity in the New York City branch and, in his regional and Head of Retail roles, was responsible directly or indirectly for broader retail trading supervision.

The practical investor concern is straightforward: when a brokerage account is traded repeatedly, the costs can become so high that the account has little realistic chance to make money. FINRA described red flags such as high cost-to-equity ratios, high turnover rates, in-and-out trading, large losses, high trading costs, frequent margin use, repeated exception-report alerts, and customer complaints or arbitration claims.

Regulatory and enforcement actions

The most important recent event is FINRA’s April 2026 settlement order. Without admitting or denying the allegations, Cammarano consented to findings that he failed to reasonably investigate and address multiple red flags indicating representatives were engaged in potentially excessive trading and churning. FINRA found that he failed to reasonably supervise representatives, including willful violations of Section 10(b) of the Exchange Act by certain representatives.

FINRA ordered an 18-month suspension in all principal capacities and a $15,000 fine. The suspension runs from April 21, 2026 through October 21, 2027, according to the provided BrokerCheck report.

Why churning and excessive trading matter

Churning generally refers to excessive trading in an account for the purpose of generating commissions or other compensation rather than serving the investor’s goals. Excessive trading can also appear as frequent buying and selling, short holding periods, repeated use of margin, and transaction costs that are out of proportion to the size of the account.

For investors, the harm may show up as a steady stream of commissions, markups, service charges, margin interest, and losses that are hard to understand from account statements alone. Even when individual trades appear small, the overall cost of the trading strategy can make it extremely difficult for the account to recover.

Supervision failures and red flags

Supervisors are expected to respond when trading activity raises obvious warning signs. In this matter, FINRA described red flags that included accounts appearing on active account exception reports month after month, FINRA examination findings about excessive trading, representatives with prior disciplinary histories or financial pressure, customer complaints, and accounts with cost-to-equity ratios above common excessive-trading benchmarks.

The order states that Cammarano was aware of potentially excessive and unsuitable trading activity through his review of daily trade blotters, active account exception reports, and branch-manager checklist processes. FINRA found that he did not reasonably investigate and address those red flags.

Named individuals and related misconduct themes

The FINRA order also names Kim M. Monchik, James Pecoraro, John Stapleton, and Michael Darvish. The records describe Pecoraro, Stapleton, and Darvish as representatives tied to excessive or unsuitable trading allegations, with Pecoraro and Stapleton also tied to churning allegations. Monchik is described as Spartan’s Chief Administrative Officer and periodic Chief Compliance Officer. These names may be relevant for investors reviewing Spartan account activity or separate investigation pages.

What investors can do and how ChapmanAlbin can help

If you worked with Frederick Joseph Cammarano III, Spartan Capital Securities, LLC, or one of the representatives referenced in the FINRA order, review whether your account activity matched your investment goals, risk tolerance, and instructions. Pay close attention to trading frequency, margin use, commissions, markups, service charges, and whether the same security was repeatedly bought and sold over short periods.

Common Warning Signs

• Your account shows frequent buying and selling that you did not understand or expect
• Commissions, markups, service charges, or margin interest appear high compared with your account size
• The same stock or security was bought and sold repeatedly over short periods
• Your account used margin even though you did not understand the risks or did not ask to borrow against the account
• You were told the strategy was active, aggressive, or “hands-on,” but the costs and risks were not clearly explained
• Your account statements show steady losses while the broker or firm collected significant trading costs
• You were a senior investor, retiree, or conservative investor but your account was traded like a speculative account

Documents to Gather

• Monthly account statements for the full period you worked with Spartan or the broker
• Trade confirmations, especially those showing commissions, markups, markdowns, or service charges
• Margin agreements, margin interest charges, and any notices about margin calls
• New account forms and updates showing your investment objectives, risk tolerance, income, net worth, and liquidity needs
• Emails, texts, call notes, and any written recommendations or portfolio summaries
• Any arbitration papers, complaint letters, or settlement communications involving Spartan or its representatives
• Notes about conversations where you questioned trading activity, losses, or fees

FAQs

What did FINRA find about Frederick Joseph Cammarano III?

FINRA found that Cammarano failed to reasonably investigate and address multiple red flags indicating Spartan representatives were engaged in potentially excessive trading and churning. FINRA also found that he failed to reasonably supervise representatives, including certain willful violations by representatives he supervised.

What sanctions did FINRA impose?

FINRA imposed an 18-month suspension from associating with any FINRA member in all principal capacities and a $15,000 fine.

What is churning?

Churning generally means excessive trading in an account to generate commissions or other compensation, rather than to serve the investor’s interests. It can involve rapid trades, high turnover, high costs, and repeated transactions that are not justified by the investor’s goals.

Why does margin matter in an excessive-trading case?

Margin can increase risk because the investor is borrowing against the account. When frequent trading is combined with margin interest, commissions, and losses, account damage can grow quickly.

What should I do if I was a Spartan Capital client?

Gather account statements, trade confirmations, margin documents, communications, and any complaint records. Then compare the trading activity and costs against your goals, risk tolerance, and what you were told at the time.

Can a brokerage firm be responsible for a supervisor’s failures?

Depending on the facts, investor claims may involve the supervising firm if the firm failed to maintain or enforce a reasonable supervisory system, ignored red flags, or allowed harmful trading activity to continue.

Disclaimer

This page is for informational purposes only and is not legal advice. Past outcomes are not a guarantee of future results. Each matter is different and depends on its specific facts.