Shepherd Smith Edwards and Kantas Private Placement Fraud Attorneys are investigating whether this warrants an Investment Loss Recovery Claim Against Spartan Capital Securities

The law firm Shepherd Smith Edwards and Kantas is investigating Spartan Capital Securities and its CEO John Dennis Lowry following a FINRA disciplinary case over the alleged unsuitable sale of $24 million in high-risk Atlas Fund private placements to retail investors. The investigation focuses on massive undisclosed conflicts of interest, due diligence failures, and millions of dollars in excessive fees and markups that directly benefited Lowry.

If you are an investor who suffered losses in one of the Atlas Funds controlled by Spartan Capital securities broker, owner, and CEO John Dennis Lowry, contact our private placement fund loss attorneys today. There are concerns that the pre-IPO private placements may have been unsuitably recommended to more than 190 customers.

What Are The Atlas Funds?

• Atlas Fund III Ser B LLC (Klarna)
• Atlas Fund III Ser E LLC (Scopely)
• Atlas Fund IV LLC Ser A (Kraken)
• Atlas Fund V LLC Ser C (Dataminr)
• Atlas Fund V LLC Ser F, F1, & F2 (The Zebra)

These are high-risk, illiquid investments and alternative investments that should not have been sold to retail investors, including retirees and seniors.

What Are The Private Placement Fraud Allegations Against Spartan Capital?

• In November 2025, the Financial Industry Regulatory Authority (FINRA) filed a disciplinary case against the brokerage firm, Lowry, and Chief Administrative Officer Kim Monchik alleging widespread failures related to the sale of these private placements.
• Lowry was the sole owner and control person of the Atlas Fund Management, which is the issuer of the Atlas Funds.
• He is believed to be the one who decided that Spartan Capital Securities would serve as the sole private placement agent while receiving a 10% fee.
• The investments in question, which are unregistered, involved more than $24M in Atlas Fund private placements that were allegedly unsuitably sold to 191 customers, many of them retail investors.
• $3.25M in alleged markups were charged that purportedly benefited Lowry.
• This earned Spartan Capital over $2.4M in fees, while other compensation, which were allegedly undisclosed markups and management fees, purportedly went to entities that Lowry operated.
• FINRA contends that there were due diligence failures, conflicts of interest that were not disclosed, and a failure to supervise by the brokerage firm.
• FINRA is alleging unsuitability, misrepresentations and omissions, regulation Best Interest violations, and more.

I’m An Investor Who Suffered Atlas Fund Losses. Should I Sue Spartan Capital Securities?

Already, a number of investment loss recovery claims have been filed in FINRA arbitration by customers of the brokerage firm who have suffered serious losses. Spartan Capital CEO John Lowry’s BrokerCheck CRD lists more than a dozen customer disputes, including several related to Atlas Fund losses in his role as control person. Other Spartan Capital brokers also sold this alternative investment. It is important to discover whether you, too, have a private placement fund lawsuit on your hands.

Shepherd Smith Edwards and Kantas Private Placement Fraud Attorneys (investorlawyers.com) are continuing to investigate investor losses. We are seasoned private placement loss attorneys who know how to assess whether you have legal grounds for suing your financial advisor.

Remember that not all investment losses warrant grounds for holding your broker-dealer liable. However, if unsuitability, misrepresentations and omissions, Regulation Best interest violations, supervisory failures, conflicts of interest, and other broker misconduct or negligence were involved, you may have a claim for damages.

Talk To Our Private Placement Fraud Attorneys About Your Atlas Fund Losses

Suing your broker is not something you want to do without a knowledgeable securities lawyer fighting for you while protecting your legal rights.

Call our Private Placement Fraud Attorneys at (800) 259-9010 or contact us online.