Michael J. Dugan

ChapmanAlbin is investigating claims on behalf of investors who may have suffered losses due to excessive and unsuitable trading by former Spartan Capital Securities broker Michael J. Dugan.

According to a recent FINRA enforcement action, Dugan has been suspended for seven months after recommending a pattern of excessive trades to two retail customers between 2017 and 2022. These trades, FINRA found, were unsuitable and not in the customers’ best interest—constituting willful violations of Regulation Best Interest (Reg BI), as well as FINRA Rules 2111 and 2010.

For one client, a 60-year-old retiree, Dugan recommended 171 trades over several years, resulting in an annualized turnover rate of 16 and a cost-to-equity ratio of 66%. The activity generated nearly $119,000 in commissions and over $63,000 in realized losses. A second customer, a 65-year-old business consultant, was subjected to even more aggressive trading—95 transactions with an annualized turnover rate of 38 and cost-to-equity ratio of 63%, resulting in more than $153,000 in losses.

Dugan exercised de facto control over both accounts, and his excessive trading led to substantial financial harm. FINRA concluded that his recommendations failed to meet the standards of care and diligence required under Reg BI and other rules meant to protect investors.

If you worked with Michael J. Dugan and believe you experienced unauthorized or excessive trading, contact ChapmanAlbin. Our firm is actively investigating these claims and may be able to help you recover investment losses.

Call 1-877-410-8172 or visit chapmanalbin.com for a free consultation.