Publicly-available records provided by the Financial Industry Regulatory Authority (FINRA) on February 18, 2016 indicate that South Dakota-based Kovack Securities broker/adviser John Schwan has been suspended for two months and fined $20,000. The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Schwan (CRD# 1421895).
John Schwan has spent 29 years in the securities industry and has been registered with Kovack Securities in Aberdeen, South Dakota since 2010. Previous registrations include Cambridge Investment Research in Aberdeen, South Dakota; Cap Pro Brokerage Services in Columbus, Ohio; FFP Securities in Chesterfield, Missouri; and NYLife Securities in New York, New York. He is a registered broker and investment adviser 33 US states and territories.
In February 2016 FINRA suspended John Schwan for two months following allegations he engaged in outside business activities, not for compensation, without providing written notification to his member firm, Cambridge Investment Research; FINRA additionally alleged he engaged in other outside business activities for compensation without promptly notifying Cambridge Investment Research. According to FINRA’s complaint, the activities in question included soliciting Cambridge customers to invest in Running Springs Oil and Gas L.P., Obele Energy L.P., and MVIS Notes. Mr. Schwan allegedly also served on the board of directors for a South Dakota bank, for which he received compensation, without providing written notice to or receiving approval from Cambridge Investment Research. FINRA further alleges he partially owned and was involved in the operation of a restaurant, of which he did not provide written notice to or receive approval from Cambridge Investment Research. Mr. Schwan has signed an AWC Letter (No. 2010023826303) agreeing to a 2-month suspension and a fine of $20,000.
In 2010 John Schwan was discharged from his position at Cambridge Investment Research following allegations he participated in outside business activities.
In 1985 the South Dakota Insurance Department sanctioned John Schwan following allegations he failed to deliver all documents associated with a life insurance policy. He was fined $300.
If you have lost money investing with John Schwan, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 without delay. You may be entitled to recoup your losses. We accept all cases on contingency: Fitapelli Kurta only gets paid if and when you collect money. Time to file your claim may be limited, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.