According to FINRA, John Dennis Lowry and Kim Marie Monchik are facing charges in a FINRA complaint for failing to timely respond to information requests during an investigation.

Important note: This matter involves a complaint, which represents the initiation of a formal disciplinary proceeding. No findings have been made regarding the allegations, and the respondents are presumed innocent until proven otherwise.

The complaint alleges that Lowry failed to timely provide information and documents until after FINRA issued two follow-up requests and initiated two expedited proceedings to compel compliance. Monchik allegedly failed to timely respond to five requests until after six follow-up requests and five expedited proceedings.

FINRA began investigating Spartan Capital Securities' sales of membership interests in unregistered private funds, an outside business activity of Lowry and Monchik. The requests sought information about the private funds and the firm's net capital calculations.

The complaint also alleges that Lowry, as CEO, failed to maintain a reasonable system for compliance with Rule 8210 requests and failed to supervise Monchik's responses. After delegating these responsibilities to Monchik, Lowry allegedly did not review whether his delegations were being properly exercised and failed to intervene despite red flags suggesting problems.

This is a separate matter from the other enforcement action against Spartan Capital and its principals in this period. Investors should be aware that pending complaints are disclosed on BrokerCheck and indicate ongoing regulatory concerns that have not yet been resolved.