The Financial Industry Regulatory Authority (FINRA) has suspended Murat Kartal, a former general securities representative of Spartan Capital Securities, for 10 months. Kartal is suspended
from associating with any FINRA member in all capacities.
From August 2017 through August 2018, while registered with FINRA through Spartan Capital, Kartal excessively traded a senior customer’s account in violation of FINRA Rules 2111 and 2010.
From August 2017 through August 2018, Kartal engaged in quantitatively unsuitable trading in a senior customer’s account resulting in a high turnover rate, high annualized cost-to-equity ratio, and significant losses.
Kartal effected 150 transactions in his customer’s account, resulting in an annualized turnover rate of 49.36 and an annualized cost-to-equity ratio of 197 percent. Kartal’s trading in the customer’s account generated total trading costs of $206,667, including $189,446 in commissions, and caused $51,959 in realized losses.
His customer routinely followed his recommendations to engage in high frequency trading and, as a result, Kartal exercised de facto control over the account. Kartal’s trading in the customer’s account, was excessive and unsuitable given the customer’s age and investment profile.
On December 22, 2022, Spartan Capital filed a Uniform Termination Notice for Securities Industry Registration terminating Kartal’s registration through the firm. Although Kartal is no longer registered or associated with a FINRA member firm, he remains subject to FINRA’s jurisdiction.
Kartal has submitted a statement of financial condition and demonstrated an inability to pay. In light of his financial status, no monetary sanctions have been imposed.
