Did Former Kovack Securities Inc. Financial Advisor Andrew Corbman Recommend High-Risk Penny Stock Investments?
Posted on Wednesday, August 1st, 2018 at 9:29 am
Former Kovack Securities Inc. financial advisor Andrew Corbman (CRD# 2513558) regarding accused of recommending unsuitable penny stocks. Corbman was registered with Newbridge Securities Corporation in Lansdowne, Virginia from November 2015 to March 2016 and with Kovack Securities Inc. in Lansdowne, Virginia from 2011 to 2015. Previously, Corbman was registered with FSC Securities Corporation in Ashburn, Virginia from 2008 to 2011, when he was terminated regarding, “The registered representative violated firm policies, including the use of unapproved advertising, failure to utilize required firm sales practice forms and was found to have utilized an unapproved e-mail address.”
According to public records, it is alleged that Corbman made unsuitable investment recommendations and solicited the purchase of two unsuitable and high-risk penny stocks, TrovaGene, Inc. and Marathon Patent Group, Inc.
In December 2016, FINRA barred Corbman after he consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony as requested by FINRA in connection with FINRA’s inquiry into the circumstances surrounding his termination from his member firm, as well as allegations against him regarding unsuitable and unauthorized trading.
In February 2016, FINRA suspended Corbman regarding findings that he made recommendations that were unsuitable and over-concentrated, which exposed customers to a risk of loss that exceeded each customer’s risk tolerance and investment objectives. According to Corbman’s CRD, “The findings stated that Corbman also distributed a sales brochure for an alternative mutual fund to his customers that contained information that was misleading and failed to provide a sound basis for evaluating the alternative mutual fund referenced in it.”
Corbman has been the subject of 16 customer complaints between 2002 and 2017, according to his CRD report. Recent complaints include:
March 2017. “Claimant alleges unsuitability, common law fraud, breach of contract, negligent supervision, breach of fiduciary duty, and overconcentration in connection with the purchase of stocks.” The customer sought $50,000 and the case was settled for $28,000.
March 2017. “Claimants allege unsuitability, common law fraud, breach of contract, negligent supervision, breach of fiduciary duty, and overconcentration, in relation to the purchases of shares of Augme Technologies Inc. stock.” The customer sought $100,000 and the case was settled for $10,000.
December 2016. “Claimant alleges unsuitability, fraud, breach of contract, negligent supervision, breach of fiduciary duty, overconcentration, and violation of California’s Securities Act.” The case was settled for $125,000.
November 2016. “Client alleged losses in his accounts caused by his Rep.” The customer sought $48,000 and the case was settled for $40,000.
June 2016. “Claimants allege unsuitability, common law fraud, breach of contract, breach of fiduciary duty, overconcentration.” The case was settled for $45,000.
May 2016. “Claimant alleges over-concentration of her account.” The case was settled for $15,000.
December 2016. “Unauthorized and unsuitable investments; failure to supervise.” The customer sought $1.3 million and the case was settled for $400,000.
December 2015. “Violations of the Virginia Securities Act, Common Law Fraud, Securities Fraud, Breach of Fiduciary Duty, Unsuitability, Negligence, Breach of Contract.” The customer sought $700,000 in damages and the case was settled for $428,250.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Kovack Securities Inc. may be liable for investment or other losses suffered by Corbman’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.