John Dennis Lowry and Kim Marie Monchik

Spartan Capital Securities, LLC (CRD #146251, New York, New York), John Dennis Lowry (CRD #4336146, New York, New York), and Kim Marie Monchik (CRD #2528972, Hazlet, New Jersey) March 17, 2026 – The firm, Lowry, and Monchik were named respondents in FINRA complaint alleging that they willfully violated Section 10(b) of the Securities Exchange Act and Rules 10b-5(a) and 10b-5(c) thereunder by engaging in a scheme to defraud firm customers by failing to disclose, and materially misleading customers regarding, the customers’ ability to resell restricted shares that the firm sold to the customers in two private placements. The complaint alleges that the firm, Lowry, and Monchik engaged in the scheme to delay their customers’ ability to resell their restricted shares so that the firm and selected employees could liquidate their similarly restricted shares soon after the initial public offering (IPO) commenced using the “deemed owned” exception. The complaint also alleges that the firm and Monchik, acting on behalf of the firm as its CCO, willfully violated Section 10(b) of the Exchange Act and Rule 10b-5(b) thereunder by making the material omissions to firm customers that owned pre-IPO shares. The firm and Monchik knew, or were reckless in not knowing, that the firm’s customers would seek to sell their pre-IPO shares as soon as possible after the IPO commenced. Having undertaken to assist customers with, and provide information regarding, the restriction removal process, the firm and Monchik had a duty to speak truthfully to, and not to mislead, customers regarding sales of their restricted shares. Nevertheless, although the IPO commenced on June 15, 2021, the firm, through Monchik, first advised customers about the process for removing resale restrictions from their pre-IPO shares in a June 23, 2021 notification email. The firm and Monchik deliberately omitted, or were reckless in not disclosing, the material omissions, which were designed to keep firm customers unaware that the firm and its employees were selling shares and using the “deemed owned” process. By the time any of the firm’s customers were able to sell pre-IPO shares, the issuer’s sale price had fallen dramatically, and the firm and its employees had made over $50 million in profits from their sales of pre-IPO shares. The complaint further alleges that the firm received unfair and unreasonable underwriting compensation and failed to disclose its underwriting compensation. When disclosing the underwriting compensation to FINRA and in public filings, the firm failed to include $475,000 and 500,000 shares that the issuer paid to the firm to help prepare for the IPO and associated uplisting to a national exchange. When added to the consideration that the firm did disclose, that undisclosed compensation rendered the firm’s total underwriting compensation unreasonable. In addition, the complaint alleges that the firm failed to establish and maintain a reasonable supervisory system, including WSPs, to address the conflicts of interest posed by the firm, its principals, and its employees who owned pre-IPO shares. The firm, Lowry and Monchik’s ownership of shares created a conflict of interest in that they were incentivized to liquidate their shares prior to customers, whose sales could drive down share prices. Lowry and Monchik made the critical decisions regarding whether it was permissible for firm employees to sell their pre-IPO shares using the “deemed owned” process, without disclosing this to firm customers. (FINRA Case #2021071714201) If you have suffered losses as a result of John Dennis Lowry and Kim Marie Monchik’s act and/or actions, we would like to hear from you. We are currently investigating claims on behalf of clients who have suffered significant losses in their portfolios that are managed by John Dennis Lowry and Kim Marie Monchik. The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at 866-330-6707 or email Matthew Schwartz directly at mschwartz@tslfirm.com.