Kovack Securities, Inc. Fraud and/or Investment Loss Customer Complaint Disclosures

Kovack Securities, Inc.: (CRD#:44848/SEC#: 8-50847)

 
This firm’s head office is located in Fort Lauderdale, Florida.

Other names this firm uses are:

• Kovack Securities Inc.
• RK Advisors
• RK Advisors, Inc.

They are licensed in 53 U.S. States and Territories and are owned by Kovack Financial LLC. Kovack Securities was approved by FINRA in 1998 and approved by NASDAQ in 2006. Ron Kovack owns 55 percent of the firm and Brian Kovack owns 45 percent.

Kovack International Advisors Inc., Kovack International Securities Inc. and Kovack Advisors, Inc., are under common control with the firm.

Kovack Securities Financial Advisor, Andrew Scheirer, Has Pending Customer Complaint For The Alleged Improper Sale Of Alternative Investments

By mwolper | Nov 11, 2018

The Wolper Law Firm is currently investigating claims against Andrew Scheirer, a Financial Advisor at Kovack Securities in Lake Mary, Florida. Andrew Scheirer has been in the securities industry since 2000 and previously worked at First Allied Securities before being terminated. According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on […] Read More →

Kovack Securities Sanctioned by FINRA For Mutual Fund Violations

The Financial Industry Regulatory Authority or FINRA recently sanctioned Kovack Securities, Inc. (KSI) because the broker’s supervisory practices didn’t meet regulatory standards. This general securities broker is based in Fort Lauderdale, FL, and its more than 350 registered representatives work out of more than 230 branches. KSI has been a member firm since 1998.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August 2022, FINRA sanctioned Kovack Securities, Inc. The FINRA sanction states, “From March 2015 to May 2017, KSI did not establish, maintain, and enforce a supervisory system, including written procedures, reasonably designed to achieve compliance with FINRA’s suitability rule as it pertains to short-term trading of mutual fund class A shares, which are designed to be long-term investments. In particular, KSI did not allocate reasonable resources to reviewing such trades, did not establish a process reasonably designed to detect short term trading of class A share mutual funds, and did not reasonably respond to red flags of unsuitable mutual fund trading by one of its former representatives. As a result, the firm violated FINRA Rules 3110 and 2010.”

As a result of the sanction, KSI received a censure and was ordered to pay a fine of $210,000. In addition, the firm is required to review and establish supervisory systems and procedures that address the flaws identified as part of the FINRA investigation, and submit proof of those changes within 90 days.

For a copy of the FINRA sanction, click here.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.