Excessive Trading Results in Suspension for Antonio Molinos

The Financial Industry Regulatory Authority (FINRA) sanctioned Antonio Molinos (CRD No. 2764977) for engaging in excessive and unsuitable trading activity in a retail customer’s accounts between April 2020 and April 2022. FINRA found that Molinos’ trading was not in the customer’s best interest and violated Rule 15l-1(a)(1) under the Securities Exchange Act of 1934 (Regulation Best Interest), along with FINRA Rules 2111 and 2010. Molinos consented to a three-month suspension from associating with any FINRA member in all capacities. No monetary fine was imposed because he demonstrated an inability to pay.

Molinos entered the securities industry in 1996 and was registered with Spartan Capital Securities, LLC (CRD No. 146251) between January 2018 and October 2022. He re-registered with Spartan in December 2024, where he continues to be employed as a General Securities Representative.

Under Regulation Best Interest (Reg BI), brokers must act in the best interest of their retail clients and avoid excessive trading that places their own financial interests ahead of the customer’s. FINRA guidance provides that a turnover rate of six or more or a cost-to-equity ratio above 20% typically signals excessive activity. The cost-to-equity ratio represents how much an account must earn in a year just to break even after commissions and expenses. FINRA Rule 2111 also requires that each recommendation be suitable based on the client’s financial profile, while Rule 2010 demands that brokers maintain the highest standards of commercial honor and fair dealing.

FINRA found that Molinos exercised de facto control over two accounts belonging to a 56-year-old retired customer who relied on his advice. Between April 2020 and April 2022, Molinos recommended 99 transactions in the customer’s individual brokerage account, resulting in a 48% annualized cost-to-equity ratio, generating $76,182 in commissions and $86,204 in realized losses. During the same period, he recommended 41 transactions in the customer’s IRA, producing a 29% cost-to-equity ratio, $15,435 in commissions, and $1,716 in losses. FINRA determined that this level of trading was excessive, unsuitable, and inconsistent with the customer’s best interests.

Lufrano Law, LLC is a national investment litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. Please contact us at (800) 627-2179 for more information if you have been the victim of investment negligence or fraud.

The content on this site reflects personal opinions and does not constitute statements of fact. No findings have been made against the firms or individuals mentioned. This blog is intended solely for educational purposes, drawing on publicly available information to provide general insights and a basic understanding of the law. It is not a substitute for legal advice.