Kim Monchik Subject of FINRA Complaint

Kim Monchik (CRD #: 2528972), a broker registered with Spartan Capital Securities, is the subject of allegations by FINRA, according to her BrokerCheck record, accessed on December 17, 2024. Read on to learn more about her alleged conduct as a broker. 

FINRA Complaint

On November 8, 2024, FINRA named Kim Monchik in a complaint alleging that, in her role as Spartan Capital Securities’ Chief Administrative Officer (CAO), she failed to provide timely response to several requests for information and documents made in connection with a FINRA investigation.

FINRA allegedly began investigating Spartan Capital Securities in January 2021 with regard to possible sales of membership interests in unregistered private funds (“the Funds”). Kim Monchik allegedly engaged in this as an outside business activity (OBA).

Requested documents allegedly included due diligence files, transaction information and documents, investor information, a list of the Funds’ bank and brokerage accounts, and information regarding firm brokers that had participated in the Funds.

Several information requests were allegedly addressed to Kim Monchik and she was allegedly responsible for Spartan Capital Securities’ responses to these requests. She allegedly failed to respond to five requests in a timely manner between June 2021 and October 2023, only responding after follow-up requests and expedited proceedings initiated by FINRA.

The complaint alleges that Kim Monchik violated FINRA Rules 8210 and 2010. This complaint is currently pending.

FINRA Rule 8210

FINRA Rule 8210 requires members to submit their books and records for inspection and to appear for testimony in connection with FINRA investigations.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Suspension

On October 19, 2021, Kim Monchik was named in a FINRA complaint alleging failure to amend, or to timely amend, her Form U4 to disclose arbitration filings and resolutions. 

FINRA alleged that between January 2015 and December 2020, Spartan Capital Securities failed to amend its Uniform Application for Security Industry Registration or Transfer (Form U4) and its Uniform Termination Notices or Security Industry Registration (Form U5) for 72 of its brokers in a timely manner. 

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

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

As CAO and CCO, Kim Monchik was allegedly responsible for ensuring that the information on her own Form U4 was current, accurate, and complete. FINRA alleged that she failed to disclose arbitration filings and resolutions on her Form U4 on 15 occasions.

In the initial complaint, FINRA alleged that 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

Article V, Section 2(c) of FINRA’s By-Laws requires brokers to keep their Form U4 “current at all times.”

FINRA Rule 1122

FINRA Rule 1122 prohibits registered brokers from filing registration information that is incomplete or inaccurate. 

Appeals and Sanctions

Following appeals to the FINRA’s Office of Hearing Officers (OHO), a decision filed on October 9, 2024, by FINRA’s National Adjudicatory Council (NAC) affirmed the findings of violations and modified the sanctions decided by the FINRA OHO.

Under the NAC decision, Kim Monchik faced the following sanctions:

• 2-year suspension in all capacities
• $10,000 fine

Her suspension was stated to run from December 2, 2024, to December 2, 2026. However, on November 4, 2024, Kim Monchik filed an appeal to the Securities Exchange Commission. These sanctions are not in effect while this appeal is pending.

You can read the initial FINRA complaint here and the NAC decision here.

Investor Dispute

On November 18, 2022, an investor alleged that Kim Monchik failed to supervise from August 15 through July 2022. The client seeks $247,262 in this pending dispute.

Background Information 

Kim Monchik has passed the following exams:  

• General Securities Principal Examination – Series 24
• Investment Banking Registered Representative Examination – Series 79TO
• Securities Trader Exam – Series 57TO
• Operations Professional Examination – Series 99TO
• Securities Industry Essentials Examination – SIE
• Limited Representative-Equity Trader Exam – Series 55
• General Securities Representative Examination – Series 7
• Uniform Securities Agent State Law Examination – Series 63

Kim Monchik is a registered broker in New York.

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.