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Broker Complaints: Kovack Securities (CRD# 44848)

Fitapelli Kurta is investigating claims against broker-dealer firm, Kovack Securities.

Kovack Securities was formed in Florida in 1997 and their main office is currently located in Fort Lauderdale, though they have offices in all fifty states. Kovack Securities is registered with both the SEC and FINRA.

Kovack Securities has received several complaints and has been the subject of multiple FINRA violations as of late.  Most notably, on August 31, 2007, The Office of Financial Regulation filed an administrative complaint against Kovack Securities and George Randy Cupples (who has since been permanently barred from FINRA) for failing to implement an anti-money laundering program and failing to supervise the sale of Rule 144 restricted securities. Kovack Securities also failed to maintain required records and update the firm’s written procedural manual.

  • On May 10, 2007 an arbitration award was granted for a customer against Kovack Securities for breach of fiduciary duty, unsuitability, unauthorized trading, and failure to supervise. The customer was awarded $91,815 in damages.
  • On October 25, 2007 an arbitration award was entered for yet another customer against Kovack Securities for similar misconduct- breach of fiduciary duty, breach of contract, and failure to supervise. That customer was awarded $530,000 in damages at arbitration.
  • On December 17, 2008 another customer reigned victorious in arbitration against Kovack Securities, when the FINRA arbitration panel granted the customer $52,515 in damages on allegations of misrepresentation, breach of contract, and failure to execute trades.
  • On October 31, 2011 yet another customer won at arbitration against Kovack Securities, once again for a failure to supervise, and breach of contract. The customer in that case was awarded $50,250.

If you or someone you know has lost money investing with Kovack Securities or one of their brokers, contact the experienced attorneys at Fitapelli Kurta today for your free case evaluation. You may be entitled to recover your losses.