The Financial Industry Regulatory Authority (FINRA) suspended Tory A. Duggins for 18 months due to excessive trading recommendations.
Duggins first registered with FINRA as a General Securities Dealer (GS) in September 2004. Between September 2004 and February 2016, Duggins registered with FINRA as a GS through nine different member firms. From February 2016 to present, Duggins has been registered with FINRA as a GS through Spartan Capital Securities, LLC.
From December 2016 to April 2022, Duggins made quantitatively inappropriate trades in the accounts of eight clients. His clients relied on his advice and routinely followed his recommendations, and therefore Duggins exercised de facto control over the clients’ accounts. Duggins’ trading resulted in high cost-to-equity ratios and turnover rates that were well above the traditional benchmarks of 20 percent and six, respectively, as well as significant losses, as noted below.
Specifically, Duggins’ trading in the eight client accounts resulted in annual cost-to-equity ratios of 58 percent to 289 percent and annual turnover rates of 14.36 to 63.24, while generating total trading costs of $444,176, including $343,416 in supplies of $234. total realized losses.
In addition, Duggins willfully failed to report a written customer complaint alleging a sales practice violation on his Uniform Application for Securities Industry Registration or Transfer (Form U4) in violation of Article V, Section 2 of the FINRA Bylaws and FINRA Rules 1122 and 2010.
Duggins agreed to an eighteen-month suspension from working with any member of FINRA in any capacity.
He has submitted a financial statement and proved his inability to pay. Due to his financial situation, no monetary penalties have been imposed.