Christopher Kozak, Formerly of Cetera Advisors, Suspended by FINRA for Failure to Disclose an Outside Business Activity

Christopher Kozak consented to sanctions including a six-month suspension from associating with any FINRA member firm and a $10,000 fine.

The Sonn Law Group is investigating allegations that Christopher Kozak committed misconduct. Under FINRA Rules, brokerage firms are liable for their brokers’ misconduct or negligence and investors may be able to their investment through FINRA arbitration. Contact Sonn Law Group today or call us at 866–827–3202 for a free consultation.

Christopher Kozak (CRD#: 5530806) was registered with Cetera Advisors from 2008 until 2018. In December 2018, Kozak was named in a FINRA investigation alleging violations of FINRA Rules regarding outside business activities and false statements to Cetera regarding personal securities transactions. Kozak denied allegations at the time.

On November 1, 2019, Kozak consented to sanctions in the form of a six-month suspension and a $10,000 fine. FINRA’s findings allege that between 2016 and 2017, Kozak engaged in an undisclosed business activity while registered with Cetera. Specifically, the findings state that Kozak performed due diligence for a company (“Company A”) established by another Cetera representative (“Registered Representative 1”), and served as the company’s Chief Operating Officer.

Registered Representative 1 allegedly formed Company A in 2016 to acquire the assets of another company. In January 2016, Kozak conducted due diligence on behalf of Company A towards its potential acquisition of the other company’s assets. Kozak learned that nine Cetera clients had invested a total of $530,000 in the company whose assets Company A was acquiring.

Company A purchased the assets of the other company in 2016. Kozak served as COO of Company A until February 2019. According to FINRA, approximately $300,000 of the Cetera Customers’ original investments have not been repaid.

Kozak did not disclose any of this activity with Cetera until February 2017 when questioned by FINRA. On his annual compliance questionnaire for the year 2016, Kozak falsely stated that he was in compliance with Cetera’s prohibition against engaging in outside business activities.

Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional committed acts in violation of FINRA Rules, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.