SEC v. Spartan Trading Company, LLC, Estate of Richard Myre, Estate of Dale Dahmen, et al. — U.S. Securities and Exchange Commission Litigation Release No. 26528, dated April 15, 2026.
The SEC charged Spartan Trading Company, LLC and its founders with a multi-million dollar offering fraud. The unregistered investment fund allegedly raised over $3.7 million from investors by promising to invest in stocks, but instead, the money was largely withdrawn by the founders or lost on minimal trading activity. Final judgments have been entered against the company and the estates of two founders, concluding the SEC's litigation.
Imagine a group of friends started a club to pool money for investing in the stock market. They promised everyone their money would be carefully invested to grow. However, instead of investing the money as promised, they mostly took it for themselves or made very few, unsuccessful trades. The club was essentially a fake way to get money from people. Now, the government has stepped in to stop the fake club and get some money back for the people who were tricked.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
On April 13, 2026, the U.S. District Court for the District of Minnesota entered a final judgment by consent against the Estate of Richard Myre and an amended default judgment against Spartan Trading Company, LLC. The Court previously entered a default judgment against Relief Defendant the Estate of Dale Dahmen, and, upon the SEC’s motion, dismissed charges against Relief Defendant the Estate of Dominick Dahmen. The SEC’s complaint alleged that from 2019 to 2023 Spartan Trading, an unregistered investment fund founded by Myre, Dale Dahmen, and Dominick Dahmen, raised over $3.7 million from dozens of investors. The complaint alleged that Spartan Trading, Myre, and the Dahmens raised money on the premise of pooled investing but then failed to make promised investments in stocks. Spartan Trading and Myre were also alleged to have provided investors with statements that falsely represented that Spartan Trading was earning consistently positive returns when, in reality, Spartan Trading engaged in very little investment activity at all and often lost money on the trades it did make. The complaint further alleged that Myre and the Dahmens regularly withdrew money from Spartan Trading, receiving more than $1.9 million of investor money. Without admitting or denying the allegations made in the complaint, the Myre Estate agreed to the entry of the final judgment, which orders the estate liable, jointly and severally with Spartan Trading, for disgorgement of ill-gotten gains and prejudgment interest. The amended default judgment against Spartan Trading permanently enjoins it from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 and orders it liable for disgorgement plus prejudgment interest totaling $1,319,823.02, of which up to $695,000 is owed jointly and severally with the Myre Estate. The default judgment against the Dale Dahmen Estate ordered it to pay disgorgement of $648,747.15 plus $51,034.69 in prejudgment interest.
Named in this action: Spartan Trading Company, LLC, Estate of Richard Myre, Estate of Dale Dahmen, Estate of Dominick Dahmen.