December 25, 2018
According to The Financial Industry Regulatory Authority (FINRA) former advisor Scott Kozak (Kozak). has been accused by his former firm and barred by FINRA over unapproved securities. Kozak has four customer complaints on his record.
The charge was “selling away” securities, not approved by the broker Kozak was affiliated with. The activity occurred between July 2011 and March 2017. Kozak was associated previously with Cetera Advisors LLC (Cetera) in Highlands Ranch, Colorado.
“Selling Away” is a serious FINRA violation. All products and securities sold to an investor must be approved by the broker-dealer with whom the broker is affiliated, first.http://www.BrokerFraud.Net Kozak’s member firm was Cetera Advisors. In July 2018 Cetera fired Kozak for violating policies concerning personal securities transactions.
The details of the scope of the alleged outside business activities (OBAs) and private securities transactions from the FINRA complaint.
Accompanying undisclosed Other Business activities is the risk of the sale of unapproved investment securities – a practice known in the industry as “selling away.”
“Selling Away” refers to when a financial advisor solicits investments in securities or other business investments which are not pre-approved by the broker’s firm. Sometimes these types of investments can end up being Ponzi schemes. Sometimes the funds are converted or “stolen.” FINRA rules mandate firms to monitor and supervise its employees in order to detect and prevent brokers from offering investments “away” from the firm for this reason. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system.
In nearly all instances of “selling away” the investor is unaware that the broker’s conduct is improper. Usually the conduct comes to light when the investment is lost. From July 2001 until August 2018 Kozak was with Cetera in Colorado.
Anthony M. Abraham, Esq., PC is experienced in “selling away”, churning and unauthorized trading claims. If you suspect that your account has been the subject of fraud, please call us Toll Free at 1-877-430-4877 for a Free Consultation or email us at Anthony@Abrahamattorneys.com.http://www.BrokerFraud.net