According to FINRA, Spartan Capital Securities, LLC, along with executives John Dennis Lowry and Kim Marie Monchik, were found in violation of disclosure requirements and ordered to pay significant fines.

The firm was censured, fined $600,000, and required to retain an independent consultant to review its policies relating to Form U4 and Form U5 disclosures. Lowry was fined $20,000 and suspended for two years, while Monchik was fined $10,000 and also suspended for two years.

The violations centered on the firm's systematic failure to amend, or timely amend, the Form U4s and Form U5s of its registered representatives to disclose customer arbitrations, settlements, and reportable financial events. FINRA found that these failures were willful, as the firm knowingly elected not to disclose arbitrations against its executive officers despite being cautioned twice by FINRA.

Lowry was personally involved in 12 arbitrations resulting in awards and settlements totaling more than $1.6 million. He failed to disclose eight settlements and disclosed four late. Monchik was named in 12 arbitrations alleging supervision failures, with awards totaling over $360,000. She failed to disclose 11 arbitrations and disclosed one 562 days late.

Investors should understand that brokers and firms are required to promptly disclose arbitration filings, complaints, and settlements on their regulatory forms. These disclosures appear on BrokerCheck and help investors make informed decisions. When firms and brokers hide this information, it deprives investors of critical data about their financial professional's history.

The sanctions are currently not in effect pending SEC review.