FINRA Targets Spartan Capital’s Kim Monchik for Disclosure Failures and Rule Violations

Regulatory actions and customer complaints continue to mount against Spartan Capital Securities, where chief administrative officer Kim Marie Monchik (CRD #2528972) is accused of failing to meet disclosure requirements and supervisory obligations. 

Over a career spanning more than 25 years, Monchik has accumulated seven disclosures on her record, including two regulatory proceedings (one pending and one on appeal) and five customer disputes. The latest cases center on allegations that Monchik failed to meet disclosure obligations and oversee compliance practices at Spartan Capital, a firm already under scrutiny for supervisory and record-keeping deficiencies.

Regulators Allege Pattern of Incomplete Filings and Misrepresentation

Monchik allegedly willfully failed to timely amend her Form U4 to disclose multiple customer arbitration filings and their outcomes. The issue stems from a regulatory proceeding first filed in October 2021, when the Financial Industry Regulatory Authority (FINRA) began investigating whether Monchik neglected to update her registration documents as required under industry rules.

Following a hearing on March 28, 2023, FINRA’s Office of Hearing Officers fined Monchik $30,000, imposed a two-year suspension, and ordered her to correct her Form U4 filings. The decision also found her omissions to be willful, triggering a statutory disqualification under the Securities Exchange Act — a serious consequence that could bar her from future association with any FINRA member firm.

Monchik appealed the ruling to FINRA’s National Adjudicatory Council (NAC), which later reduced the fine to $10,000 but upheld the findings of willful nondisclosure. She subsequently filed an appeal with the U.S. Securities and Exchange Commission (SEC) on November 4, 2024, where the matter remains under review.

In her defense, Monchik has disputed the allegations, asserting that her omissions were made in good faith and based on legal counsel’s interpretation of the disclosure requirements. As of now, the SEC’s decision will determine whether the sanctions take effect or are overturned.

FINRA Cites Delayed Cooperation in Private Fund Investigation

A separate regulatory action against Monchik remains ongoing. According to FINRA’s complaint filed on November 8, 2024, Monchik allegedly failed to timely respond to multiple information and document requests issued under FINRA Rule 8210. These requests were part of an investigation into Spartan Capital Securities’ sales of unregistered private fund interests. These investments, which include hedge funds and private equity funds not registered with the SEC, have drawn heightened regulatory attention in recent years.

FINRA claims that staff issued several follow-up communications and ultimately had to initiate expedited proceedings to compel Monchik’s cooperation. The complaint asserts that her lack of timely response impeded the investigation into whether Spartan Capital properly disclosed and managed these private fund transactions.

Monchik, however, denies any wrongdoing. She maintains that she was not the subject of the Rule 8210 requests and that she held no direct regulatory responsibility for the materials sought by FINRA. As of now, the case remains pending, with no findings or disciplinary sanctions issued.

Customer Complaints Continue to Cite Monchik’s Oversight Disputes

Monchik is currently named in four active arbitration cases spanning from 2022 through 2025. The cases generally allege failure to supervise or vicarious liability tied to her executive position at Spartan Capital Securities, rather than direct client interactions.

• May 2025: The claim involves alleged misrepresentations by another Spartan representative in connection with private placements. Monchik is named under a respondeat superior theory, asserting firm-level liability for the other broker’s conduct.
• March 2025: This dispute alleges failure to supervise equity trading activity. Damages were not specified in the public filing.
• July 2024: The customer claims $375,000 in damages tied to alleged supervisory failures over private placement transactions.
• November 2022: Another case centered on private placements, alleging failure to supervise and seeking $247,262 in damages.

Additionally, in a previous FINRA arbitration, which was decided in 2016, Monchik was named in a case involving allegations of churning, unsuitability, unauthorized trading and breach of fiduciary duty. The arbitration panel awarded the claimant $41,842 in damages.

Monchik has denied all allegations, maintaining that she had no direct supervisory authority or customer contact in any of the disputed accounts.

What Investors Should Know

The series of regulatory actions and investor complaints involving Spartan Capital’s leadership highlights ongoing concerns about the firm’s oversight and compliance practices. Allegations tied to disclosure failures and delayed cooperation under FINRA Rule 8210 point to gaps in transparency and accountability, which are central to investor protection.

Form U4 and Rule 8210 violations are serious because they can conceal the scope of a broker’s disciplinary history or obstruct regulatory investigations. Repeated disputes over supervision and private placements may also reflect weaknesses in firm-wide risk management.

For investors, these cases underscore the importance of vigilance. Private placements and other high-risk products often carry limited transparency and liquidity, making clear disclosures and proper supervision essential. Those who invested through Spartan Capital should review their accounts for unauthorized trading, excessive risk exposure or private fund losses and consider seeking guidance if concerns arise.

Explore Your Options for Financial Recovery

If you suffered losses tied to Spartan Capital or suspect your investments were mishandled, you may have grounds for recovery through FINRA arbitration. 

Sonn Law Group represents investors across the country in cases involving unsuitable recommendations, failure to supervise and regulatory violations. Our firm operates on a contingency fee basis, so you pay nothing unless we successfully recover compensation for you.

Contact our team at 833-912-3000 or fill out our online contact form to arrange a free, confidential consultation.