Spartan Securities, Island Capital Stuck Facing SEC Fraud Suit

Spartan Securities Group Ltd., Island Capital Management LLC, and their principals failed to convince a federal judge in Florida that they’re entitled to an early win in an SEC suit over two alleged microcap fraud schemes.

Spartan, a broker-dealer, and Island, a transfer agent, allegedly helped 19 undisclosed blank check companies make their shares public. But genuine disputes of material fact exist, and neither side is entitled to judgment as a matter of law, the U.S. District Court for the Middle District of Florida said.

Judge Virginia M. Hernandez Covington rejected both the defendants’ motion for summary judgment on ...