Spartan Capital Securities Investigation
Peiffer Wolf is investigating Spartan Capital Securities, a major New York brokerage firm that is facing serious allegations of excessive trading, churning, and elder financial abuse. Brokers allegedly involved include Kim M. Monchik, Frederick Joseph Cammarano III, James Pecoraro, John Stapleton, and Michael Darvish.
If you’ve invested in Spartan Capital Securities, Contact Us today by filling out a Contact Form or by calling 585-310-5140 for a FREE Case Evaluation.
FINRA Alleges Spartan Capital Securities Built Its Business on Excessive Trading
The Financial Industry Regulatory Authority (FINRA) has filed a sweeping enforcement complaint against Spartan Capital Securities and its top leadership, including CEO Kim Monchik, alleging a multi-year scheme that enriched the firm while devastating customer accounts.
According to FINRA, it was reported that from 2018 through April 2022:
- 114 customer accounts were excessively traded
- 35 accounts were churned
- 53 accounts belonged to senior citizens
- Customers paid nearly $10 million in trading costs
- Investors suffered almost $8 million in losses
The alleged abuse was extreme. FINRA reported cost-to-equity ratios as high as 491%, meaning some investors would have needed implausibly high annual returns just to break even.
Spartan Capital | A Pattern of Ignoring Red Flags and Failing to Supervise
“Spartan’s Business Depended on Excessively Trading Customer Accounts.”
(FINRA’s COMPLAINT from December 15, 2025)
FINRA alleges that Spartan Capital:
- Ignored “glaring red flags” of broker misconduct
- Allowed representatives to continue churning accounts
- Hired brokers with prior customer complaints and regulatory histories
- Misled customers about excessive commissions and trading costs
- Failed to supervise 36 additional brokers involved in abusive trading
The firm and several executives are accused of willfully violating the Securities Exchange Act of 1934, FINRA Rules 2010, 2020, and 2111 (Suitability) and the SEC’s Regulation Best Interest.
The latest complaint filed against the firm mentions the following brokers:
- Kim M. Monchik (CRD No. 2528972)
- Frederick Joseph Cammarano III (CRD No. 2277307)
- James Pecoraro (CRD No. 2440231)
- John Stapleton (CRD No. 2791194)
- Michael Darvish (CRD No. 3243141)
What Is Churning? A Clear Violation of Securities Laws
“Churning is illegal and unethical, as excessive commissions and transaction costs can rapidly destroy an investor’s portfolio.”
(Investopedia)
Churning is one of the most serious forms of broker misconduct. According to the SEC, churning is excessive trading by a broker in a customer’s account primarily to generate commissions, and it is a violation of the securities laws, and FINRA warns that excessive trading occurs when transactions are inconsistent with the customer’s investment objectives, risk tolerance, and financial situation.
Retirees are frequently targeted because they:
- Rely on savings for retirement income
- Are less likely to monitor high-frequency trading
- Place trust in long-term advisors
You May Be Entitled to Recover Losses
Peiffer Wolf has represented thousands of investors nationwide in claims involving investment fraud, unsuitable recommendations, and broker misconduct. We are committed to holding financial institutions accountable. In the past year, we recovered over $100 Million for investors who lost money because of unsuitable investment advice, financial misconduct, securities law violations, and fraudulent investment practices.
If you’ve invested in Spartan Capital Securities, Contact Us today by filling out a Contact Form or by calling 585-310-5140 for a FREE Case Evaluation. It is critical to act quickly to preserve your rights and explore all available options for potential maximum recovery.
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