Category Archives: Kovack Securities

Aldo Marchena-Former Northeast Securities Broker-Discloses Settlments to Customers and Regulatory Sanction-Boca Raton, FL

UPDATE October 2017Aldo Marchena, who is not currently registered with any broker dealer,  discloses four customer disputes on his FINRA record ,  including:

FINRA Case 16-1918-in which a customer of Northeast Securities alleges damages of $75,000 for breach of fiduciary duty by recommending high risk investments. This case was settled in December 2016 for $30,000.

FINRA Case 15-3116-in which a customer of Northeast Securities alleges damages of $65,250 for unauthorized trading and unsuitable investments. This case was settled for $45,000 in November 2016

ORIGINAL POST -March 24, 2016-Boca Raton, FL

Aldo Nestor Marchena , a broker with Northeast Securities, entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that  he engaged in an outside business activity while associated with Northeast Securities without providing written notice to the firm in violation of FINRA rules.

In addition, FINRA alleged that Marchena made inaccurate statements on two annual firm questionnaires , in violation of FINRA rules.

According to FINRA records, Marchena formed ABC, a Florida LLC which offered business consulting services and used his Northeast Securities address as the official address of ABC. In early 2011, Marchena orally requested permission from the firm to refer Northeast Securities customers to ABC for business consulting purposes and for referrals from ABC for brokerage services. The firm denied the request.

According to FINRA, Marchena did not tell the firm he was continuing his involvement with ABC.

AWC No.  2014040769401

Marchena was suspended by FINRA from association with any FINRA member in any capacity for five months and fined $5,000 in April 2016.

FINRA records disclose that Marchena was registered with Northeast Securities from 10/2010-4/2014. Prior to that he was employed by Kovack Securities. He is not currently registered as of October 2017. Marchena also discloses a business relationship with Global Investment Group.

Northeast Securities was founded in 1989 and is headquartered in Mitchelfield , NY.  According to FINRA , Northeast Securities discloses 15  regulatory events and 12 customer arbitrations.

If you have losses in an account handled by Aldo Marchena, you may be able to recover damages through FINRA arbitration.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Jason Anderson, Former LPL Financial Broker, Named in Unauthorized Trading/Churning Suit-Beaumont, TX

October  2017 – Beaumont, Texas

In May 2017, two elderly former customers of LPL Financial filed a class action lawsuit against LPL Financial and their former broker Jason N. Anderson seeking damages on behalf of  current and former clients of Anderson. The suit alleges unauthorized trading, churning and mismanagement of customer accounts from 4/2007-1/2016.

LPL Financial challenged the suit that was filed in Jefferson County, TX, and  the case was removed to federal court for the Eastern District of Texas. In August 2017, the case was  remanded back to the 58th Judicial District Court of Jefferson County, Texas.

According to his FINRA  record, Anderson worked for LPL Financial from 2007 until January 2016 when he was fired for for conducting discretionary trading in customer accounts, in violation of firm policy.

Following his discharge from  LPL Financial, Anderson was employed by Kovack Securities for a few months,  1/2016-5/2016. Kovack Securities discharged Anderson because they found incomplete signed documents during a firm audit.

Anderson then joined IFS Securities from 5/2016-4/2017. He is not currently registered with any firm.

A discretionary account is one that allows a broker to buy and sell securities without  first obtaining the client’s consent. Discretionary trading generally requires that permission be granted by the client in writing.  Most accounts are non discretionary, meaning the broker is required to consult with the customer and obtain permission before executing trades. Trades made in non discretionary accounts without consulting with the customer are unauthorized trades.

Investor suits for damages are generally required to be pursued in arbitration before the Financial Industry Regulatory Authority (FINRA) in accordance with the new account agreement customers sign when opening an account. FINRA arbitration is a method of dispute resolution that is generally much more expedient and less costly than court litigation.

If you had an account with Jason Anderson and suffered losses due to unauthorized trading, churning, mismanagement or other reasons, contact us to learn how you may be able to recover damages from his prior employer.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Jason Skyler – TKG Financial Broker- Discloses Pending Customer Dispute – Santa Barbara, CA

May 2017- Santa Barbara, CA

According to publicly available records Jason B. Skyler (CRD#4634466) ,  a  stockbroker currently registered with Kovack Securities, discloses a pending customer dispute.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In a 9/2016 claim, a customer of TKG Financial seeks unspecified damages and alleges throughout the life of the account that various trades are unauthorized, and that Skyler failed to follow client instructions.

Skyler has been employed  by Kovack Securities since 5/2017. He was previously employed by TKG Financial.

If you have questions about an account in an account handled by Jason Skyler contact us to discuss your legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Kovack Securities to Acquire TKG Financial

May 2017

Ft. Lauderdale-based Kovack Securities announced that they intend to acquire the assets of TKG Financial, Inc.

Kovack Securities has about 400 advisors nationwide.

TKG Financial,  based in Santa Barbara, CA, has 7 advisors and about $200 million in client assets.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Douglas W. Studer-Former Kovack Securities Broker-Barred by Securities Regulator-Ft. Lauderdale, FL

February 2017-Ft. Lauderdale, FL

According to publicly available records Douglas W. Studer , (CRD# 4440047) ,  a  former stockbroker who was last employed by Kovack Securities, disclose that he was permanently barred by FINRA from acting as a broker or otherwise associating with firms that sell securities to the public.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In September 2016 , without admitting or denying the allegations, Studer consented to the entry of findings that he refused to appear before FINRA for on the record testimony in relation to an investigation into whether he had violated his employing member firm’s policy by being named in an elderly customer’s estate documents to inherit the customer’s waterfront condominium.

 

In November 2015, a customer of Studer’s prior employer, National Securities Corporation alleged damages in excess of $5,000 for unauthorized trading in mutual funds. That matter was settled for $60,010.

Public records reveal that Studer filed and was discharged from Chapter 7 Bankruptcy in April 2010.

Prior to Kovack Securities, Studer was employed by National Securities and before that by Prime Capital Services.

If you have questions about an account in an account handled by Douglas W. Studer, contact us to discuss your legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Gerald J. OHalloran- Kovack Securities Broker-Discloses Customer Disputes- Punta Gorda, FL

January 2017-Punta Gorda, FL

According to publicly available records Gerald J. OHalloran, (CRD# 1056697) ,  a  stockbroker currently employed by Kovack Securities  discloses five  prior finalized customer disputes, 3 pending customer disputes and two separations from employment after allegations.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

A customer of  Kovack Securities, filed FINRA Case 7-01446, alleging damages of $64,193 for recommending unauthorized trading. An arbitration panel awarded the customer $76,565.

In pending  FINRA Case 16-2140  a customer of Kovack Securities alleges damages of $135,000 for negligence , misrepresentation and other claims related to investments in real estate investment trusts (REITs).

In 5/2000  O Halloran  was ‘permitted to resign’ from A. G. Edwards  . In 9/ 1998, O Halloran was discharged from Edward D. Jones & Co for failure to comply with records keeping requirements.

O Halloran has been registered with Kovack Securities since May 2004.

If you have questions about an account in an account handled by Gerald J. O Halloran, contact us to discuss your legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870