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Kovack Securities Inc. Broker Susan Penney Accused of Unsuitable Investment Recommendations

Posted on Tuesday, September 8th, 2020 at 1:46 pm    

Kovack Securities Inc.

Erez Law is currently investigating Kovack Securities Inc. broker Susan Penney (CRD# 1238195) regarding unsuitable investment recommendations. Penney has been registered with Kovack Securities Inc. in Oklahoma City, Oklahoma since 2012. 

Back in 2012, FINRA suspended Penney for 10 days and sanctioned her to a $5,000 civil and administrative penalty and fine after it was found that he “exercised discretionary trading authority in customer brokerage accounts without prior written customer authorization and without speaking to the customers on the day the trades were placed. Penney’s member firm’s policies and procedures prohibited discretionary trading in brokerage accounts of customers, unless for a family member and none of the trades were made for a family member.”

Penney has been the subject of one customer complaint, according to her CRD report:

June 2020. “Client alleges that Representative sold unsuitable investments resulting in losses.” The customer is seeking $100,000 in damages and the case is currently pending. The complaint was regarding real estate securities. 

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 Penney’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.