FINRA Sanctions Scott Kozak for Soliciting $1.2 Million Away from Firm Cetera, False Statements

Attorney Advising Disclaimer

With $1.2 million solicited from investors toward an undisclosed outside business activity, FINRA suspended ex-Cetera Advisors representative Scott Patrick Kozak, who served as founding partner of Kozak & Associates in Colorado, for disclosure failures and engagement in private securities transactions.

In November 2019, FINRA sanctioned Kozak & Associates Chief Operating Officer and fellow Cetera Advisors rep Christopher Kozak for similar undisclosed outside business activities with a nutrition and protein bar company called IGC, LLC (trade name PR Bar).

In its report for Christopher Kozak (CRD #5530806), FINRA noted that $300,000 of the firm customers' original investments had not been repaid.

Now, in AWC #2017053017203 concerning Scott Kozak (CRD #1272583), investigators wrote that Scott Kozak, acting outside the scope of his Cetera employment, solicited investments and repeatedly provided false statements in multiple yearly compliance questionnaires that he had not engaged in any private securities transactions.

The findings indicate that Scott Kozak solicited investments in both stock and promissory notes, which according to FINRA purported to provide for as much as a 15% interest rate and one-year maturity.

Finally, FINRA found that Scott Kozak formed an entity to acquire PR Bar's assets, and did not disclose this to Cetera. The firm subsequently terminated Kozak in 2018 for violating firm policy prohibiting personal securities transactions.

Kozak's BrokerCheck file indicates that following his termination from Cetera, he entered into employment with Ridit Consulting.

In turn, the Colorado Division of Securities in 2019 specifically directed Ridit Consulting to suspend Kozak's investment adviser representative license.

Kozak's file lists two customer disputes from 2008, one of which resulted in settlement and the other resulting in an arbitration's judgment to award damages, and based on allegations that Kozak failed to follow liquidation instructions which resulted in tax consequences, misrepresented an investment, and failed to follow instructions to place trades.

If you have invested with former Cetera Advisors representatives Scott Patrick Kozak or Christopher Kozak, or with any broker or financial adviser who improperly solicited investments in an undisclosed outside business, or whose selling away and private securities transactions have proven harmful to your investments or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

Related Posts
  • After $13 Million in Penalties for 'Widespread Failure,' Oppenheimer Fined $500,000 for Supervisory and Suitability Gaps Read More
  • FINRA barred former Independent Financial Group (IFG) broker Brett Arthur Hartvigson of San Diego, California for refusing to cooperate with its investigation into allegations that were part of a complaint. In 2021, while associated with IFG, Brett Harvgi Read More
  • Stifel Nicolaus Failed to Detect Unsuitable Recommendations Despite Risk Policy, Says FINRA Read More