Did You Lose Money with Former Kovack Securities Inc. Financial Advisor Curtis Milakovich?
Posted on Saturday, September 22nd, 2018 at 10:23 am
There are options for customers of former Kovack Securities Inc. financial advisor Curtis Milakovich (CRD# 5471527) who is alleged to engage in churning, unsuitable recommendations, unsuitable investment strategy, failure to supervise, and permitting an unregistered advisor to control. Milakovich was registered with Kovack Securities Inc. in Naples, Florida from 2011 to 2013, when he was terminated regarding, “The firm received a verbal inquiry from the rr’s client, inquiring about the nature and volume of the trading activity in her account, and commissions charged.” Milakovich has not been registered with any brokerage firm since 2013.
In December 2017, a former customer of Milakovich won a FINRA arbitration against Milakovich for $164,000. According to Milakovich’s CRD, “Claimants allege churning, unsuitable recommendations, unsuitable investment strategy, failure to supervise, permitting an unregistered advisor to control.” It is alleged that even after Milakovich left Kovack Securities Inc. after he was terminated, he continued to open accounts at a third-party brokerage firm for this customer. Additionally, it is alleged that Milakovich invested the clients’ funds in high-risk securities and excessively traded their accounts to generate his personal commissions. The claimants asserted the following causes of action: unsuitability; unauthorized trading; negligence; breach of fiduciary duty, including failure to disclose; aiding and abetting breach of fiduciary duty; churning; failure to supervise; and breach of contract. The causes of action relate to the purchase in the claimants accounts of various unspecified securities, including stocks, options, and exchange-traded funds.
In April 2018, FINRA indefinitely suspended Milakovich after he failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.
In June 2017, the Florida Office of Financial Regulation barred Milakovich from selling securities in the state of Florida and sanctioned him to $70,000 in civil and administrative penalties and fines following allegations he engaged in fraudulent transactions; falsification or concealment of facts and offer/ sale of securities.
In May 2015, FINRA barred Milakovich after he failed to respond to finra request for information. According to the complaint, Milakovich failed to request termination of his suspension within three months of the date of the notice of suspension; therefore, he was automatically barred from association with any FINRA member in any capacity.
Milakovich has been the subject of one additional customer complaint, according to his CRD report:
November 2013. “Client alleges unsuitable transactions, unauthorized and excessive trading.” The customer sought $50,000 in damages and the case was settled for $55,000.
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 Milakovich’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.