Erez Law is currently investigating Spartan Capital Securities, LLC broker John Stapleton (CRD# 2791194) regarding unsuitable investment recommendations. He has been registered with Spartan Capital Securities, LLC in Garden City, New York, since 2015. Previously, he was registered with Craig Scott Capital, LLC in Uniondale, New York, from 2013 to 2015.
In December 2025, he was named in a FINRA complaint alleging that “ for more than four years, the firm defrauded customers by engaging in widespread churning, generating millions in revenue and causing customers millions in harm. The complaint alleges that the firm, Pecoraro, and Stapleton willfully violated Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5 by churning customer accounts. Pecoraro, Stapleton, and the firm, acting through themselves and through other firm representatives exercised de facto control over the trading in the customer accounts and controlled the volume and frequency of trading in the accounts, decided what securities to buy and sell, the quantity of each transaction, and the timing of each transaction. The customers relied on them to make recommendations and routinely followed the recommendations. Pecoraro, Stapleton, and the firm, acting through them and other representatives, acted with scienter and acted with intent to defraud, or at a minimum, with reckless disregard of the interests of the customers. The complaint also alleges that the firm, Pecoraro, and Darvish recommended trading that was excessive and unsuitable. Pecoraro, Darvish, and the firm, acting through themselves and other representatives engaged in trading in customer accounts that was excessive and quantitatively unsuitable in light of the customers’ investment profiles, as evidenced by the high cost-to-equity ratios and turnover rates, the frequency of the transactions, and the transaction costs incurred. The complaint further alleges that the firm, Pecoraro, Stapleton, and Darvish willfully violated Exchange Act Rule 15l-1(a)(1) (Reg BI). The Respondents failed to act in the best interest of the customers at the time the recommendations were made. The recommended series of securities transactions were excessive and not in the best interest of the customers and placed the financial or other interests of the firm and its representatives ahead of the customers’ interests. In addition, Pecoraro, Stapleton, and Darvish failed to exercise reasonable diligence, care, and skill to have a reasonable basis to believe that the series of securities transactions recommended to the customers were not excessive; were in the customers’ best interests taken in light of their investment profile and the potential risks, rewards, and costs associated with the recommendations; and did not place the firm’s or its representatives’ financial or other interests ahead of the customers’ interests. In addition, the complaint alleges that the firm, Monchik, and Cammarano failed to reasonably investigate and address the red flags of excessive trading and churning and failed to reasonably supervise Pecoraro’s and Stapleton’s willful violations of Section 10(b) of the Exchange Act. The firm, Monchik, and Cammarano had an obligation to reasonably investigate and follow up on red flags indicating that the firm’s representatives were engaged in potentially excessive trading and
John Stapleton Customer Complaints
He has been the subject of eight customer complaints between 2002 and 2025, one of which was denied and one was withdrawn, according to his CRD report. The most recent complaints are regarding:
June 2025. “Unsuitable trading activity, unauthorized transactions, and excessive commissions.” The customer is seeking $200,000 in damages. The complaint was regarding equity OTC and common and preferred stocks.
July 2024. “Fraud, Unsuitability, Negligent Failure to Supervise, Misrepresentation and Omissions.” The customer is seeking $375,000 in damages. The complaint was regarding private placements including Rubric, Impossible Foods, Scopely, Just, Zebra, and Grab.
February 2024. “Commissions/fees charged in both equity trading and private placement investments.” The customer is seeking $525,000 in damages. The complaint was regarding common and preferred stocks and private placements.
January 2020. “Time Frame: No time frame mentioned/associated with individual claimant in Statement of Claim (SOC). Allegations: Alleging misrepresentation and unsuitable recommendations.” The customer sought $25,445 in damages, and the case was settled for $10,000. The complaint took place while he was registered with Spartan Capital Securities, LLC.
January 2017. “Claimant alleges unsuitability.” The customer sought $48,223.26 in damages,e and the case was settled for $20,600. The complaint was regarding common and preferred stocks, and it took place while he was registered with Craig Scott Capital, LLC, and Spartan Capital Securities, LLC.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Spartan Capital Securities, LLC may be liable for investment or other losses suffered by John Stapleton’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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