Clearwater broker-dealer says it was the victim in a fraud scheme

Spartan Securities Group and an affiliated company, Island Capital Management, are fighting back against a complaint alleging securities violations that was filed by the U.S. Securities and Exchange Commission.

Spartan, Island and principals of the Clearwater-based companies vehemently deny any wrongdoing and look forward to taking the case to court, according to a statement from their attorney, Alan Wolper, a partner with Ulmer & Berne LLP in Chicago.

The complaint, filed by the SEC in federal court in Tampa Wednesday, accused the defendants of helping create and sell at least 19 purportedly legitimate public companies that were actually shams.

Neither Spartan nor Island, nor any of their employees, were involved in the creation or operation of those firms,  and Spartan, Island and their principals were victims of a fraud committed by the individuals behind the 19 companies, Wolper’s statement said.

The 19 companies represent a fraction of the thousands of legitimate issuers that Spartan and Island have worked with over the years, Wolper said. The litigation won’t affect operations going forward, his statement said.

A date for a court hearing has not yet been set.