Haselkorn & Thibaut, a national investment fraud law firm with over 50 years of experience and a 98% success rate, has opened an investigation into Kim Marie Monchik, a financial advisor with Spartan Capital Securities in New York. If you’ve invested with Ms. Monchik or Spartan Capital Securities and experienced losses, this report contains important information about regulatory actions and customer complaints that may affect your investments.
Who is Kim Marie Monchik?
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Kim Marie Monchik has been a registered financial advisor for over two decades, currently working with Spartan Capital Securities, LLC since July 2008. She operates from their New York office at 45 Broadway, 19th Floor, and holds several securities licenses including Series 7, 24, 63, and 65. Her BrokerCheck record (CRD #2528972) reveals a concerning pattern of regulatory issues and customer disputes that investors should carefully consider.
Red Flags in Kim Monchik’s Regulatory History
Our investigation has uncovered multiple regulatory violations that raise serious concerns about Ms. Monchik’s compliance with industry standards and regulations:
Pattern of Regulatory Violations
Between 2019 and 2023, Ms. Monchik faced four separate regulatory actions from FINRA (Financial Industry Regulatory Authority), resulting in significant penalties:
| Date | Violation | Penalty |
|---|---|---|
| October 2023 | Unsuitable recommendations and excessive trading | $25,000 fine + 9-month suspension |
| June 2021 | Failed to obtain best execution prices | $5,000 fine |
| June 2020 | Supervisory system failures | $10,000 fine |
| December 2019 | Failed to timely file customer complaint reporting | $7,500 fine |
The most serious violation occurred in 2023 when FINRA found that Ms. Monchik made unsuitable investment recommendations and engaged in excessive trading in customer accounts. This practice, often called “churning,” generates commissions for the broker while potentially harming investor returns through unnecessary fees and inappropriate risk exposure.
Customer Complaints Against Kim Monchik
Beyond regulatory issues, Ms. Monchik’s record shows two customer complaints seeking substantial damages:
- April 2022 Complaint: A customer alleged unsuitable investments and misrepresentation, seeking $150,000 in damages. The complaint was denied by the firm.
- February 2016 Complaint: Another customer claimed breach of fiduciary duty and negligent supervision, requesting $100,000 in damages. This complaint was also denied.
While denials don’t necessarily mean the complaints lacked merit, the pattern of similar allegations combined with confirmed regulatory violations creates a concerning picture for investors.
Why These Issues Matter to Investors
The regulatory findings against Ms. Monchik directly impact investor protection in several critical ways:
Unsuitable Recommendations
When advisors recommend unsuitable investments, they violate their fundamental duty to act in clients’ best interests. This can result in portfolios that don’t match your risk tolerance, time horizon, or financial goals, potentially leading to significant losses.
Excessive Trading
The excessive trading violation is particularly concerning because it suggests prioritizing commissions over client interests. Each trade generates fees, and unnecessary trading can erode returns even in rising markets.
Best Execution Failures
Failing to obtain best execution means clients may have paid more than necessary for their investments or received less when selling, directly impacting investment returns.
Supervision and Reporting Issues
The violations related to supervisory systems and complaint reporting suggest potential gaps in oversight that could allow problematic practices to continue unchecked.
What Should Investors Do?
If you’ve worked with Kim Monchik or Spartan Capital Securities, consider taking these steps:
- Review Your Account Statements: Look for excessive trading activity, unexpected losses, or investments that seem inconsistent with your stated goals.
- Document Everything: Gather all communications, account statements, and trade confirmations.
- Calculate Your Losses: Determine if your portfolio has underperformed or if excessive fees have impacted your returns.
- Seek Professional Help: Given the complexity of securities law, consulting with experienced attorneys can help you understand your options.
Time Limits Apply to Investment Loss Recovery
Securities arbitration claims typically must be filed within six years of the incident, though this can vary. Don’t wait to explore your options if you’ve experienced losses.
How Haselkorn & Thibaut Can Help
With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has recovered millions for investors nationwide. Our team understands the complexities of securities law and can evaluate whether you have grounds for recovering investment losses.
We work on a “No Recovery, No Fee” basis, meaning you pay nothing unless we successfully recover compensation for your losses. This ensures our interests align with yours throughout the process.
Get Your Free Consultation Today
If you’ve invested with Kim Monchik or Spartan Capital Securities and have concerns about your account, don’t wait to get answers. Call Haselkorn & Thibaut at 1-888-885-7162 for a free, confidential consultation. Our experienced attorneys can review your situation, explain your rights, and help you understand whether you have grounds for recovering investment losses.
Remember: You worked hard for your investments, and you deserve an advisor who puts your interests first. If you’ve experienced losses or have concerns about your account management, take action today to protect your financial future.
