Investors Sue Kovack Securities For Failure To Supervise
Andrew Scott Corbman of Lansdowne Virginia a stockbroker employed by Kovack Securities Inc. has been referenced in a customer initiated investment related arbitration claim which has been resolved for $80,000.00 in damages founded on accusations that (1) common or preferred equity stock transactions failed to be adequately supervised by the securities broker dealer (2) transactions were unsuitable in view of the customer’s objectives for investing and tolerance for risk (3) and the customer’s account had been administered negligently when Corbman was employed by Kovack Securities. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-02551 (Jan. 31, 2019).
FINRA Public Disclosure indicates that Corbman is the subject of seventeen more customer initiated investment related disputes pertaining to allegations of his bad business practices during the period in which the stockbroker was employed by securities broker dealers including Kovack Securities. Specifically, a customer initiated investment related arbitration claim pertaining to Corbman’s conduct was settled for $28,000.00 in damages supported by allegations that when Corbman had been employed by Kovack Securities, the customer’s account was unsuitability concentrated in speculative investments, fiduciary and contractual obligations were not complied with, transactions were negligently effected and had lacked the securities broker dealer’s supervision, and fraudulent common or preferred stock and over the counter equities transactions were facilitated by the stockbroker. FINRA Arbitration No. 17-00591 (Dec. 21, 2017).
additional customer initiated related arbitration claim concerning Corbman’s
activities has been resolved for $52,500.00 in damages founded on accusations
that when Corbman was employed by Kovack Securities, transactions he effected
were not adequately supervised, trades were unsuitable for the customer in view
of the customer’s objectives for investing and tolerance for risk, and a
fiduciary duty was breached causing common or preferred stock losses. FINRA
Arbitration No. 18-02449 (Jan. 9, 2019).
FINRA Public Disclosure confirms that Corbman has been suspended for one month from associating with any FINRA member in any capacity founded on findings that the stockbroker failed to comply with FINRA Rules 2010, 2111 and 2210 as he neglected to have an adequate basis to conclude that his investment recommendations were suitable in view of the customers’ risk tolerances or overall circumstances, customers’ accounts contained an excessive concentration in speculative investments, and the stockbroker utilized exaggerated or misleading marketing materials when employed by FSC Securities Corporation. Letter of Acceptance Waiver and Consent No. 2010024620302 (Feb. 1, 2016).
Also, Corbman has been barred from associating with any FINRA member in any capacity supported by findings of the stockbroker neglecting to provide recorded testimony before FINRA personnel when he was under investigation for providing bad investment advice and effecting unauthorized transactions. Letter of Acceptance Waiver and Consent No. 2016051009001 (Dec. 9, 2016).
Allegedly, transactions that were facilitated in a Newbridge Securities Corporation customer’s account by the stockbroker failed to be suitable because of the customer’s investment circumstances, and transactions had been executed without authorization. This warranted further investigation from FINRA necessitating Corbman’s cooperation. FINRA found Corbman’s failure to comply violative of FINRA Rules 2010 and 8210.
Corbman’s employment with Kovack Securities was terminated on November 13, 2015. He was associated with Newbridge Securities Corporation between November 12, 2015 and March 24, 2016.