George Apollo Suspended by FINRA For Alleged Excessive Trading

George Apollo (CRD #: 3101928), a broker registered with Spartan Capital Securities, has been suspended by FINRA. This is according to his BrokerCheck record, accessed on November 8, 2024. Keep reading to learn more about his alleged conduct as a broker.

FINRA Suspension

On October 8, 2024, George Apollo consented to the entry of findings that he allegedly recommended a series of unsuitable and excessive trades in four clients’ accounts between March 2016 and April 2022, and that these trades were not in their best interests.

Several factors are used to determine if a series of trades is excessive, including turnover rate and cost-to-equity ratio. A turnover rate of 6 or more or a cost-to-equity ratio over 20% typically indicate excessive trading.

According to a Letter of Acceptance, Waiver & Consent (AWC), George Apollo allegedly exercised de facto control over these four clients’ accounts, three of whom were seniors. His trading allegedly resulted in annualized turnover rates of 17 to 38 and annualized cost-to-equity ratios of 71%-125%, and generated total trading costs of $618,911. The four clients allegedly experienced $735,376 in total losses.

The AWC concluded that this alleged misconduct constituted violations of Regulation Best Interest and FINRA Rules 2111 and 2010.

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. Brokers must examine the information contained in an investor’s profile, such as their age, tax status, and risk tolerance.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

George Apollo consented to an 11-month suspension from associating with FINRA members. His suspension began on October 21, 2024, and will end on September 20, 2025.

You can read the full AWC here.

Previous FINRA Suspension

On June 6, 2024, George Apollo received a Letter of Suspension alleging that he failed to comply with an arbitration award/settlement agreement or to adequately respond to a request for information as to his compliance.

His suspension will continue until the required payment is made or discharged.

Article VI, Section 3 of FINRA By-Laws

Article VI, Section 3 of FINRA By-Laws allows FINRA to suspend or cancel the membership of any member who fails to comply with arbitration awards or settlement agreements.

FINRA Rule 9554

FINRA Rule 9554 penalizes brokers for failing to comply with arbitration awards or settlements by suspending or canceling their registration. Brokers can request a hearing within 21 days, after which their suspension or cancellation becomes final.

Tax Liens

From 2015 to 2022, George Apollo was the subject of five tax liens which total $77,759.41.

Background Information

George Apollo has passed the following exams:

• Series 63 Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 General Securities Representative Examination

George Apollo has worked with the following firms:

• Spartan Capital Securities (CRD#:146251)
• Southeast Investments (CRD #: 43035)
• Caldwell International Securities (CRD #: 104323)
• Hunter Scott Financial (CRD #: 45559)
• J.P. Turner & Company (CRD #: 43177)
• Donald & Co. Securities (CRD #: 7776)
• Joseph Stevens & Company (CRD #: 35459)

Kurta Law Can Help

If you worked with George Apollo and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.