Stoltmann Law Offices is investigating Kovack Securities. A customer claimed that Kovack allegedly broke securities laws by failing to perform necessary due diligence on these investments:
Marathon Patent Group Inc.
TrovaGene, Inc.
A Servern, Maryland customer is alleging claims against the firm for violations of common law fraud, breach of fiduciary duty, negligence and negligent supervision. It also alleges that Kovack Securities unsuitably invested the client in the above mentioned high-risk, penny stock investments. These investments were not suitable for the client, and a broker-dealer has a fiduciary duty to make sure that its broker adequately discloses the risks involved in the investment and performs the necessary due diligence to determine whether the investment is suitable for the investor. If the brokerage firm does not do so, it can be held liable for investment losses.
The Kovack Securities investment advisor was Andrew Corbman. According to his online records with the Financial Industry Regulatory Authority (FINRA,) Corbman has been permanently barred from the securities industry. Prior to being barred, he was registered with FSC Securities Corp in Ashburn, Virginia from February 2008 until January 2011, Kovack Securities in Lansdowne, Virginia from January 2011 until November 2015 and Newbridge Securities Corp in Lansdowne from November 2015 until March 2016. He has 16 customer disputes against him, two regulatory matters, one judgment/lien, one pending financial matter, and one employment separation after allegations. Kovack Securities can be held liable for investment losses in the arbitration forum on a contingency fee basis.
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