Did Jesse Todd Kovacs Cause You Investment Losses?
Jesse Todd Kovacs of Forked River, New Jersey was suspended from association with any FINRA member firm for a period of three months for allegedly participating in a private securities transaction without notifying his member firm in violation of FINRA Rules 3280 and 2010. Due to his financial status, no monetary sanction was imposed. Kovacs’ suspension remains in effect from September 21, 2020, through December 20, 2020.
In February 2016, Jesse Todd Kovacs joined O.N. Equity Sales Company (“ONESCO”) and was registered as an Investment Company and Variable Contracts Products Representative. On May 31, 2019 ONESCO had filed a Form U5 disclosing Kovac’s termination due to an undisclosed private securities transaction. According to the FINRA findings, Kovacs allegedly introduced two clients in order to negotiate a loan regarding a promissory note. FINRA stated that one of the customers sold $150,000 in her securities to secure the loan made to the other customer with a promised reimbursement plus 15% interest. The findings further alleged that Kovacs had relayed communication between both customers and informed them of the terms regarding the promissory note all outside the scope of his member firm.
FINRA Rule 3280 requires that prior to participating in a private securities transaction, a person associated with a member firm shall provide written notice to his or her firm “describing in detail the proposed transaction and the person’s proposed role therein[.]” FINRA Rule 3280 defines a private securities transaction as “any securities transaction outside the regular course or scope of an associated person’s employment with a member[.]” A violation of FINRA Rule 3280 also is a violation of FINRA Rule 2010, which requires FINRA members and associated persons to “observe high standards of commercial honor and just and equitable principles of trade.”
Do You Need a New Jersey FINRA Securities Arbitration Attorney?
Did your Forked River, New Jersey stockbroker or investment advisor recommend an investment that turned out to be an investment that was never reviewed or approved by their stockbrokerage firm employer? The stockbrokers who stoop to that level are usually insolvent or uncollectible. And so, the investor’s only recourse is against the brokerage firm employer. But stockbrokerage firms always claim ignorance of the stockbroker’s activities and deny liability for the sale of unauthorized investments which they call Selling Away as if that was an absolute defense. Not so! You will definitely need an experienced attorney who knows the securities laws and how to hold the stockbrokerage firm responsible for their employees Selling Away under legal principles of actual authority, apparent authority, estoppel and failure to supervise. If your attorney knows where to look he/she can often find Red Flags of the alleged unauthorized sales that the firm did not look for, missed, or saw and just ignored.
Free Initial Consultation With Experienced Selling Away Lawyers Representing Forked River, New Jersey Residents in FINRA Arbitrations
At The Law Offices of Robert Wayne Pearce, P.A. we represent investors in all kinds of securities, commodities, and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout New Jersey, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award.
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For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities, and investment law disputes serving New Jersey citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.