The relationship between you and your financial professional is crucial. You rely on them for guidance and practical solutions to reach your goals. When this trust is breached, living your life becomes difficult, and you are forced to work longer and harder. You are confused and don’t know where or who to turn to for help.
The customers of Kovack Securities are experiencing these issues with their brokers and financial advisors. Regulators are investigating the firm for wrongdoing, and you have options.
The Financial Industry Regulatory Authority (FINRA) governs the securities industry. You have rights, and FINRA has clear guidelines to protect you. FINRA can act aggressively against firms, brokers, and financial advisors for wrongdoing. We can pursue many options to ensure those responsible for your investment losses are held accountable.
Our attorneys at Wolper Law Firm are the investment loss attorneys that will help you. Our team of skilled professionals has decades of experience working on these cases, and we understand the law. We will identify where your financial professional broke the rules and the actions we could take.
Contact us at 954.406.1231 / 800.931.8452 to schedule your free consultation with a skilled Kovack Securities fraud attorney. You have rights, and we will stand up for you to ensure these rights are respected. Time is of the essence in these cases, and we urge you to contact us immediately to take action against Kovack Securities.
Why Choose Us?
The Wolper Law Firm has the knowledge and experience you need to pursue a lawsuit against Kovack Securities. These complex cases require a skilled professional with securities and trial law knowledge.
Matthew Wolper is our founder, and he started the firm to level the playing field for investors. Firms such as Kovack Securities have deep pockets, and they hire the finest attorneys money can buy. They “lawyer up” and try to place the blame by saying you authorized transactions and investments and were aware of the investments in your account.
FINRA does not see things this way and knows the firm has a fiduciary obligation. Proving this relationship requires a skilled Kovack Securities complaint attorney who is on your side. Our lawyers care and will go the extra mile for you. We put our knowledge and experience to work for you.
Our attorneys successfully recover money for investors in 99% of the cases we handle. Time is of the essence in these cases, and we urge you to act quickly. Contact Wolper Law Firm today at 954.406.1231 / 800.931.8452 to discuss your case.
How We Can Help
Filing a complaint against Kovack Securities is complicated and requires a professional who knows how the process works. The Wolper Law Firm is here for investors who were wronged by unscrupulous financial professionals and their firms.
We will navigate this process and help you hold the firm and financial professionals accountable. You have rights, and FINRA has a process of disciplining and resolving disputes. We will help you to go after Kovack Securities and the financial professionals that wronged you.
Our team will handle everything. We will investigate your case and identify those areas where your financial professional broke FINRA’s rules. Our team reviews the different options and creates a custom strategy for you.
If you had investment losses as a result of working with Kovack Securities, contact a Kovack Securities investment loss attorney at Wolper Law Firm by calling 954.406.1231 / 800.931.8452.
Kovack Securities is a Fiduciary
Kovack Securities and your financial professional are fiduciaries and must act under these standards. FINRA sets guidelines on what firms must do in these situations (such as Reg BI). Reg BI is a rule that FINRA aggressively enforces, stating that the firm and financial professionals must look out for your best interests. These supersede anything else, including the commissions and fees.
Kovack Securities is a fiduciary and must look out for your best interests. The losses in your account could be a sign that the firm ignored these rules. You could be compensated by going after the firm for not following Reg BI and other FINRA rules.
We recommend speaking with a Kovack Securities fraud attorney if you have losses with your account. FINRA has specific guidelines the firm and financial professionals must follow. Failing to abide by FINRA’s rules means that you could be entitled to compensation for some or all of your losses. A skilled attorney will review your options and what we can do to hold Kovack Securities and the financial professionals accountable.
Can I Sue Kovack Securities?
You have the option of suing Kovack Securities and its employees for misconduct. But the odds are good that you signed away your right to sue in an arbitration agreement. The arbitration agreement is inside the new account form. Most investors who overlook it ignore the arbitration agreement until they go after Kovack Securities.
FINRA has an arbitration procedure to resolve disputes before a panel of one to three arbitrators. Those disputes less than $50,000 will have a single arbitrator who hears the case and makes a ruling. Anything above this amount will have a three-person panel hearing your case.
Our skilled attorneys can help to guide you through a Kovack Securities lawsuit. Your case will probably end up in arbitration, and we can represent you in these proceedings. Our team of professionals has decades of experience in trial and securities law. You might not be able to sue, but arbitration can be just as effective in recovering the money you lost.
Kovack Securities and the Regulatory Problems
Kovack Securities has a long history of regulatory problems with FINRA. Over the last eight years, the firm has been disciplined for numerous violations, including
- Failing to supervise
- Breach of fiduciary duty
- Fraudulent inducement
- Unjust enrichment
- Broker negligence
- Overcharging customers on commissions and fees.
We recommend contacting a skilled Kovack Securities fraud attorney if you have losses in your account. A qualified attorney will review your case and discuss the options during the free consultation. We will discuss your case and help you find out what options are available and those avenues we could pursue.
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.
It Starts at the Top
Kovack Securities’ regulatory problems are not surprising given the history of the controversy caused by one of the owners (Brian Kovack). In 2015, Kovack became a member of FINRA’s Board of Governors and said he intends to look out for the best interests of mid-sized firms. He sees FINRA’s rules as frivolous and without merit; that investors know the risks when they get involved; and FINRA’s rules are excessive on medium-sized firms.
Despite Kovack being a member of FINRA’s Board of Governors, the firm has regulatory problems. These attitudes show how the firm’s top management knows what is going on and does not care. They see investors’ losing money as justified and feel that FINRA is overreaching. It is no surprise that Kovack Securities has so many regulatory issues. The firm’s owners are fine with financial advisors and brokers realizing sizeable commissions and fees.
A skilled Kovack Securities investment loss attorney can help you to navigate everything. You have rights, and FINRA’s rules are designed to protect you. We recommend getting the help of a skilled attorney immediately. Time is of the essence in these cases; if you move fast, it preserves crucial evidence.
Contact a Kovack Securities Investment Loss Attorney at Wolper Law Firm Today
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 954.406.1231 / 800.931.8452.