Michael Dugan: FINRA Suspends Ex-Spartan, Alexander Capital Advisor

Staten Island financial advisor Michael Dugan (CRD# 2824966) was recently sanctioned and suspended in connection with allegations that he recommended unsuitable transactions. Financial Industry Regulatory Authority records show that he is registered as a broker with Alexander Capital, having previously been registered with Craft Capital Management and Spartan Capital Securities.

A Letter of Acceptance, Waiver, and Consent (No. 2018056490327) describes FINRA’s disciplinary action against Mr. Dugan. Filed in April 2025, it describes allegations that he “recommended to two retail customers a series of trades that were excessive, unsuitable, and not in the customers’ best interests.”In the account of a 60-year-old retiree, the Letter states, he recommended 171 such transactions that generated $118,905 in commissions while causing $63,111 in realized losses. In the account of a 65-year-old customer, meanwhile, he allegedly recommended 95 such transactions that caused $153,661 in realized losses while generating $24,312 in commissions. “The level of trading that Dugan recommended in the two customers’ accounts,” FINRA found, “was excessive, unsuitable, and not in the best interest of the customers.”

As the AWC Letter describes FINRA found that Mr. Dugan’s conduct violated the SEC’s Regulation Best Interest, which requires brokers to recommend transactions that are in the best interest of their retail customers, without placing their financial interest ahead of the customer’s. FINRA also found that his trading violated FINRA Rules 2111 and 2010. As a result of these findings, the regulator suspended him from associating with any member firm for a period of seven months.

Mr. Dugan’s BrokerCheck report discloses one investor complaint. Filed in 2007, it alleged that as a representative of CAC Capital and Clark Dodge & Company, he engaged in self-dealing, misrepresented material facts, made unauthorized trades, churned investments, made excessive trades, over-concentrated the account, recommended unsuitable investments, and engaged in improper margin processes. The complaint reached a settlement of $60,000.

According to the Financial Industry Regulatory Authority, Michael Dugan holds 23 years of securities industry experience. Based in Staten Island, New York, he has been registered as a broker with Alexander Capital since 2024. His past registrations include Craft Capital Management, Spartan Capital Securities, Chelsea Financial Services, Avenir Financial Group, Blackwall Capital Markets, Olson Cross & Alamo, and Caldwell International Securities. His credentials include the passage of three securities industry qualifying exams: the Uniform Securities Agent State Law Examination, or Series 63; the Securities Industry Essentials Examination, or SIE; and the General Securities Representative Examination, or Series 7. He holds 19 state licenses. (Information current as of April 2, 2025.)

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