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Kim Monchik Under FINRA Investigation 

Dec 27, 2021 FINRA Investigation

Kim Monchik (CRD #: 2528972 ), a broker registered with Spartan Capital Securities, is the subject of a FINRA investigation, according to her BrokerCheck record, accessed on November 29, 2021. 

On October 19, 2021, Kim Monchik was named as a respondent in a FINRA complaint for allegedly failing to amend, or to timely amend, her Form U4 to disclose arbitration filings and resolutions. 

FINRA Allegations 

On October 19, 2021, Kim Monchik was named as a respondent in a FINRA complaint for allegedly failing to amend, or to timely amend, her Form U4 to disclose arbitration filings and resolutions. 

FINRA alleges that over a nearly six-year period between January 2015 and December 2020, Spartan Capital Securities failed to amend its Uniform Application for Security Industry Registration or Transfer (U4) and its Uniform Termination Notices or Security Industry Registration (U5) for 72 of its registered representatives in a timely manner. 

As a result, Spartan Capital Securities allegedly failed to disclose hundreds of reportable events involving its representatives, including customer arbitrations, complaints, bankruptcies, and unsatisfied liens and judgments. 

Among its disclosure failures, Spartan Capital Securities failed to amend or to timely amend the Form U4 of Kim Monchik, Spartan's Chief Administrative Officer (CAO) and Chief Compliance Officer (CCO). 

Kim Monchik was personally responsible for ensuring that the information on her own Forms U4 was current, accurate, and complete. Kim Monchik, however, failed to amend or to timely amend her Form U4 to disclose arbitration filings and resolutions on 15 occasions. As a result, Kim Monchik violated Article V, Section 2(c) of FINRA's By-Laws and FINRA Rules 1122 and 2010. 

Article V, Section 2(c) of FINRA's By-Laws requires brokers to keep their Form U4 "current at all times." At the same time, FINRA Rule 1122 prohibits registered brokers from filing registration information that is incomplete or inaccurate. 

Violations of Article V, Section 2(c) of FINRA's By-Laws and FINRA Rule 1122 also constitute violations of FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just principles in their business dealings.  

You can read more about the complaint here. 

Investor dispute 

On June 21, 2021, a dispute was filed against Kim Monchik for alleged unsuitability, unauthorized trading, misrepresentation, and breach of fiduciary duty. The damage amount requested is $75,000. The case is still pending. 

A financial advisor who recommends a security or investment is subject to FINRA rules. 

  1. FINRA Rule 2111 requires registered financial advisors to have a "reasonable basis" to believe that a recommended transaction or investment strategy suits their client's needs. 
  2. FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits.  

Kim Monchik's alleged unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.  

Civil Lien 

On November 4, 2011, Kim Monchik became the subject of a civil lien for $1,460. 

Background Information 

Kim Monchik has passed the following exams:  

  • Series 63 - Uniform Securities Agent State Law Examination 
  • SIE - Securities Industry Essentials Examination 
  • Series 55 - Limited Representative-Equity Trader Exam 
  • Series 7 - General Securities Representative Examination 
  • Series 24 - General Securities Principal Exam 

Kim Monchik is a registered broker in New York State. 

Besides Spartan Capital Securities, Kim Monchik has also worked with the following firms: 

  • S.W. Bach & Company (CRD#:43522) 
  • Ormes Capital Markets (CRD#:32351) 

Kurta Law Can Help 

If you have suffered losses after working with Kim Monchik, please get in touch with us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors 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.