Brokerage Firm Alert: Our Investment Fraud Attorneys Are Investigating Spartan Capital Securities, LLC
Did You Lose Money Because of Spartan Capital Securities? Are You Aware of Complaints and Fines Against Spartan Capital Securities?
Updated on: December 21, 2023
Spartan Capital Securities, Inc. (“Spartan Capital Securities”) (CRD # 146251) is a broker-dealer and has been the subject of at least seven (7) complaints filed by regulatory organizations like FINRA and many more by investors like yourself. At Patil Law, we have investigated Spartan Capital Securities, its regulatory complaints and fines, and its customer complaints. If you’ve invested your hard-earned money with Spartan Capital Securities, you should be very concerned about any regulatory actions, regulatory fines, or customer complaints against your brokerage firm.
Our team of attorneys specialize in representing investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors. As an investor, you may be entitled to compensation for losses accrued due to mismanagement of your investments.
If you believe you have a claim against Spartan Capital Securities, you should strongly consider hiring an investment fraud lawyer and not wait until it’s too late to file a claim. Reach out to our legal team via the secure and private online form or call our firm directly toll-free at 1-800-950-6553 for a free consultation so that we can discuss your case and see what we can do to help you get the compensation you need and deserve. We do not charge anything for the ability to discuss your matter and evaluate your potential case.
Jump to Topic
Do I Have an Investment Fraud Case Against Spartan Capital Securities?
Who is Spartan Capital Securities?
How To File a Claim Against Spartan Capital Securities To Get Your Money Back
Client Complaints – Is Your Financial Advisor on This List?
Did Misconduct By a Spartan Capital Securities Advisor Impact Your Investments? What Can You Do?
Spartan Capital Securities Has Many Regulatory Complaints and Fines
A Closer Look Into Spartan Capital Securities’ Regulatory Issues
Next Steps and Free Consultation with Our Legal Team
Do I Have an Investment Fraud Case Against Spartan Capital Securities?
✅ YES, if you’ve experienced financial losses due to the actions or misconduct of Spartan Capital Securities or its staff, you have the right to pursue legal action against them. You can sue Spartan Capital Securities but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding.
FINRA arbitration proceedings are generally private proceedings that can last anywhere from a few months to approximately a year. Our attorneys have personal experience in representing clients in FINRA arbitration proceedings and know very well how you can not only sue Spartan Capital Securities in FINRA arbitration proceedings, but WIN that arbitration. The easiest way to know if you have a case against Spartan Capital Securities is to reach out to our legal team at Patil Law via the secure and private online form or call us toll-free at 1-800-950-6553 for a complimentary consultation.
Who is Spartan Capital Securities?
Spartan Capital Securities (CRD # 146251) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors. As a registered broker-dealer, Spartan Capital Securities is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests. A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
How To File A Claim Against Spartan Capital Securities To Get Your Money Back
If you have questions about Spartan Capital Securities, its advisors, or the management or performance of your accounts, please contact our legal team at Patil Law via the secure and private online form or call us toll-free at 1-800-950-6553 for a free and complimentary initial consultation. Our attorneys have experience handling well over a thousand securities arbitration claims, and our law firm has successfully recovered over $25 million for our clients to date.
We understand the stress that comes along with realizing that your financial advisor or brokerage firm has made poor decisions with your money. We can help you, as we have helped hundreds of other clients in the past.
Client Complaints – Is Your Financial Advisor on This List?
There have been scores of customer complaints filed against Spartan Capital Securities stockbrokers and investment advisors over the years. Many of these complaints deal with financial advisor misconduct, poor or unsuitable investment recommendations, failure by these brokerage firms to supervise their employees (the financial advisors), and general fraud against consumers. We have launched many investigations of current and former Spartan Capital Securities advisors:
Did Misconduct By a Spartan Capital Securities Advisor Impact Your Investments?
If you have lost money investing with any of these Spartan Capital Securities advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call our legal team at Patil Law toll-free at 1-800-950-6553 or reach out to us via the secure and private online form for a free initial consultation.
Spartan Capital Securities Has Many Regulatory Complaints and Fines
There have been approximately seven (7) state and self-regulatory body disclosure events against Spartan Capital Securities; that is, final and formal proceedings initiated by a regulatory authority like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) for a violation(s) of investment-related rules or regulations. In addition, there have been countless customer complaints filed against Spartan Capital Securities for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
Our legal team at Patil Law has reported and written about these regulatory problems and customer complaints over many years. A few of the notable FINRA Sanctions for its Supervisory Failures are below.
A Closer Look Into Spartan Capital Securities’ Regulatory Issues
Spartan Capital Securities has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors. Details of seven (7) regulatory issues are listed below:
Fined for Alleged Supervisory Failures In Disclosing Reportable Events on its Registered Representatives’ Forms U4 or Forms U5 (AWC No. 2019061528001)
Overview from FINRA’s Disciplinary Office:
On October 19, 2021, Enforcement filed a three-cause Complaint.
Cause one alleges that Spartan failed, or failed timely, to amend Forms U4 and Forms U5 in 223 instances. Of those 223 instances, according to the Complaint, 162 involved the filing or resolution of customer arbitrations naming Lowry, Monchik, other executive officers, registered representatives, or some mixture of all four. 51 Ten non-arbitration instances involved the Firm failing to make timely disclosures relating to written customer complaints alleging sales practice violations and damages in excess of $5,000.52 In 51 instances, the Complaint alleges, Spartan failed to timely disclose financial events—specifically 50 unsatisfied judgments and liens and one bankruptcy petition—on its registered representatives’ Forms U4. 53 Exhibits A and B to the Complaint identify the failures. With respect to the Firm’s failures to disclose information on the Forms U4 of the Firm’s executive officers and a branch manager, Enforcement alleges that the Firm acted willfully.
At the hearing, Enforcement dropped three of the 162 alleged failures by Spartan to disclose or timely disclose arbitration-related events on behalf of its registered representatives, reducing the number to 159. 55 The number of undisclosed events relating to written customer complaints (10) and financial events (51) remained unchanged.
According to the Complaint, in 162 instances (reduced to 159 at the hearing) associated with 49 arbitrations Spartan failed to file, or timely file, amendments to the Forms U4 or Forms U5 of its registered representatives to disclose filings of customer arbitrations, including the disposition of an arbitration by an unfavorable award or a settlement. Of the 49 investment-related arbitrations filed by Spartan customers during the Relevant Period, all but one was filed with FINRA’s Dispute Resolution.57 The arbitrations named about 70 registered representatives as respondents besides Lowry and Monchik. Nearly all the arbitrations alleged serious misconduct, which included churning, fraud, unsuitable recommendations, unauthorized transactions, misrepresentation, or failure to supervise. According to the Complaint, the allegations in the arbitration claims meet the definition of a “sales practice violation” set forth in the Explanation of Terms.
All the arbitrations at issue named the Firm as a respondent and at least one registered representative—typically the broker assigned to the customer’s (or customers’) account. Nearly all the arbitrations named more than one individual as a respondent. Some registered representatives were named in multiple arbitrations.59 In addition to the registered representative assigned to the customer’s account, Firm executives were often also named as respondents. Of Spartan’s alleged failures to disclose customer arbitrations against its registered representatives, 15 arbitrations named nine Spartan executives, including a branch manager, other than Lowry and Monchik.
The Complaint also alleges that Spartan failed to disclose, or timely disclose, ten written, non-arbitration customer complaints on the Forms U4 of three brokers.
The Complaint also alleges that the Firm failed to timely amend (i.e., within 30 days of the Firm’s learning of the financial event) its registered representatives’ Forms U4 to disclose 51 financial events. Fifty of the alleged violations involved a judgment or lien, while one concerned a bankruptcy filing. In nearly all instances, Spartan learned of the financial event from FINRA staff, who had inquired why the Firm had not yet disclosed the events.
Cause two alleges that in 38 instances, Lowry willfully failed, or failed timely, to amend his Form U4 to disclose arbitrations and dispositions of arbitrations. Of those 38 instances, cause two alleges that Lowry never disclosed 22 arbitrations naming him as a respondent and failed to timely disclose the filing of four arbitrations. It also alleges that Lowry failed to disclose the disposition of eight customer arbitrations and, in four other instances, disclosed the dispositions of arbitrations late.
Cause three alleges that in 15 instances, Monchik willfully failed, or failed timely, to amend her Form U4 to disclose arbitrations and the dispositions of arbitrations. Of those 15 instances, cause three alleges that Monchik never disclosed 11 customer arbitrations naming her as a respondent and disclosed one customer arbitration late. Cause three also alleges that she failed to disclose the disposition of two arbitrations and failed to timely disclose the disposition of one arbitration.
Fined for Alleged Supervisory Failures In Filing Amendments to the Uniform Applications for Securities Industry Registration or Transfer (Forms U4) and Uniform Termination Notices for Securities Industry Registration (Forms U5) (AWC No. 2019061528001)
Overview from FINRA’s Disciplinary Office:
From January 1, 2015 to December 31, 2020 (the “relevant period”), Spartan Capital Securities, LLC failed to file, or to timely file, 223 amendments to the Uniform Applications for Securities Industry Registration or Transfer (Forms U4) and Uniform Termination Notices for Securities Industry Registration (Forms U5) for 72 of its registered representatives. As a result, Spartan failed to disclose, or to timely disclose, hundreds of reportable events involving its representatives, including customer arbitrations, customer complaints, bankruptcies, and unsatisfied liens and judgments.
As a result of these disclosure failures, Spartan violated Article V, Sections 2(c) and 3(b) of FINRA’s By-Laws and FINRA Rules 1122 and 2010.
Among its disclosure failures, Spartan failed to amend, or to timely amend, the Forms U4 and Forms U5 of its executive officers and a branch manager to disclose customer arbitrations against those registered representatives, including primarily the Forms U4 of the firm’s two most senior executives: John D. Lowry, Spartan’s Chief Executive Officer (CEO), and Kim M. Monchik, Spartan’s Chief Administrative Officer (CAO) and Chief Compliance Officer (CCO).
Lowry and Monchik were personally responsible for ensuring that the information on their own Forms U4 was current, accurate, and complete. Lowry and Monchik, however, each failed to amend, or to timely amend, their Forms U4 to disclose arbitration filings and resolutions thereof on 38 and 15 occasions, respectively. As a result, Lowry and Monchik each violated Article V, Section 2(c) of FINRA’s By-Laws and FINRA Rules 1122 and 2010.
Spartan’s failure to amend, or to timely amend, the Forms U4 and Forms U5 of its executive officers and a branch manager was willful, as were Lowry’s and Monchik’s failures to amend, or to timely amend, their own Forms U4. Respondents’ willfulness is demonstrated by, among other things, their continuing refusal to disclose arbitrations despite warnings from FINRA in 2017 and 2018 that they were required to do so.
Fined $7,500 for Allegedly Paying Commissions to Unregistered Entities Controlled by Their Representatives (AWC No. 2013035258901)
Overview from FINRA’s Disciplinary Office:
This matter concerns Spartan Capital’s violation of NASD Rule 2420 and FINRA Rule 2010 by paying commissions to six unregistered entities controlled by Spartan’s registered representatives, rather than paying the registered representatives directly.
Fined $9,800 for Alleged Multiple Absences or Late Disclosures (Docket/Case Number: AP-23-13)
Overview from FINRA’s Disciplinary Office:
Upon a registration review conducted by the registration section of the Missouri Securities Division, it was discovered that respondent was the subject of a FINRA action for numerous absent or late disclosures of reportable occurrences. The enforcement section alleges that these actions also constitute a violation 15 CSR 30-51. 160(3) (a).
Fined $15,000 for Alleged Supervisory Failures In Complying With Terms of A Supervisory Agreement
Overview from FINRA’s Disciplinary Office:
SCS has failed to comply with the terms of a supervisory agreement.
Fined for Allegedly Engaging In Dishonest and Unethical Conduct In The Securities Industry (Docket/Case Number: E-2016-0085)
Overview from FINRA’s Disciplinary Office:
Spartan engaged in dishonest and unethical conduct in the securities industry; failed reasonably to supervise two of its registered representatives, one of whom was the firm’s co-CEO; charged excessive fees; understated the commissions it was earning by misrepresenting the nature of those fees; and omitted information from its trade confirmations that is required by SEC Rule to be included.
Fined $40,000 for Alleged Supervisory Failures In Complying to FINRA Rules (Docket/Case Number: INV2013-0008)
Overview from FINRA’s Disciplinary Office:
Respondent was ordered on 1/4/2012 to perform undertakings to come into compliance with FINRA Rule 3230 Re Telemarketing and failed to do so receiving ongoing complaints of calls to do not call numbers. A C&D was filed in August 2012 alleging a failure to comply with the 1/4/12 consent.
Fined $35,000 for Alleged Supervisory Failures Allowing An Unlicensed Agent to Solicit Sales (Docket/Case Number: COM2011-003)
Overview from FINRA’s Disciplinary Office:
Ed Segur, an unlicensed agent in NH solicited the sale of stock to a NH resident in a cold call in violation of FINRA Do-Not-Call requirements.
Next Steps and Free Consultation with Our Legal Team
If you have questions about Spartan Capital Securities, its advisors, or the management or performance of your accounts, please contact our team at Patil Law toll-free at 1-800-950-6553 for a free initial consultation. Or please reach out to us through our secure and private contact form and we will call you back quickly to discuss your case.
Our attorneys have experience handling well over a thousand securities arbitration claims, and our law firm has successfully recovered over $25 million for our clients to date. We understand the stress that comes along with realizing that your financial advisor or brokerage firm has made poor decisions with your money.
We can help you, as we have helped hundreds of other clients in the past. We are happy to serve you as well as to provide you with a custom report of your advisor’s and your brokerage firm’s complaints.