Robert Nicholas Korzik, Formerly of Ameriprise, Suspended by FINRA After Allegations of Unauthorized Private Securities Sales

Korzik was suspended for a period of nine months and ordered to pay a fine based on his misconduct.

The Sonn Law Group is investigating allegations that Robert Korzik made unauthorized private securities sales.  If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Robert Nicholas Korzik (CRD#: 1013350) was previously registered with Ameriprise Financial from 2011 until 2017. In October 2017, Korzik was discharged from Ameriprise Financial based on allegations that he committed, “company policy violations related to private securities investments.” 

On March 26, 2020, Korzik signed a Letter of Acceptance, Waiver, and Consent. He consented to the sanctions in the form of a 9-months suspension and an $8,500 fine. He also consented to FINRA’s findings, which stated that Korzik personally invested $50,000 in a private securities transaction involving an energy company, and solicited and facilitated the purchase of approximately $550,000 of these securities by firm customers. Korzik received an email from a friend and chief executive officer (CEO) of an energy company. The email indicated that the company was seeking to raise money in a private offering and attached a copy of the company’s investor slide deck, private placement memorandum, and business plan.

Korzik solicited several investors, including high net worth clients of his firm, by forwarding the email and its attachments to them. Korzik’s participation in the offering included, among other things, circulating information regarding the company to investors, scheduling and participating in several meetings with his customers and the company’s CEO, engaging in numerous email exchanges with the company’s CEO that referenced amounts his customers would invest, and following up with his customers regarding their investments in the company.

When the firm discovered that Korzik was facilitating his customers’ purchases of securities in the company, he denied that any firm customers had purchased company securities and attempted to buy out their shares. Korzik received no compensation in connection with his customers’ purchases of these securities. 

The findings also stated that by using his firm email to distribute the email from the CEO and the attachments, Korzik failed to comply with FINRA’s content standards for communications with the public. The communications failed to provide a fair and balanced discussion of the risks associated with the investment, as they did not prominently disclose that the securities were speculative, illiquid, and subject to a high degree of risk. In addition, the communications failed to balance the discussion of the features and potential benefits of the offering with the corresponding risks.

The company’s business plan and investor deck omitted the assumptions used to derive the stated financial projections, and therefore did not provide a sound basis to evaluate the information. The business plan and investor deck also contained promissory or unwarranted claims regarding its business operations and objectives. Additionally, the email contained a forward-looking prediction estimating the per-share value of the company’s stock.

Noonan has one other disclosure on his BrokerCheck report.

November 2018 Customer Dispute

• Status: Pending
• Allegations: “Claimants claimed that the individual respondents breached their fiduciary duty related to the management of claimants’ accounts between 2011 through 2018, alleging that claimants accounts were not appropriately diversified, that the accounts were not appropriately monitored, and that one or both of the individual respondents engaged in authorized trading.”
• Damage Amount Requested: $35,000.00
• Broker Comment: “The claimants allegations are denied. The named individual respondents anticipate vigorously defending this matter.” 

Contact Us Today

The Sonn Law Group is currently investigating allegations that Robert Korzik made unauthorized private securities sales. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.