Jesse Kovacs Suspended By FINRA For Allegedly Participating In Private Securities Transactions

The law firm of Oakes & Fosher is currently investigating the alleged misconduct of securities broker Jesse Kovacs. According to his publicly available FINRA BrokerCheck report, Jesse Kovacs has been the subject of multiple customer disputes over the course of his career.

Jesse Kovacs is a New Jersey-based securities broker who has worked in the securities industry for eleven years. During his career, he was registered with five different securities firms.

His Registrations 

• NYLife Securities (2006-2007)


• Securian Financial Services (2007-2009)


• Hornor, Townsend & Kent (2010-2011/2013-2016)


• The O.N. Equity Sales Company (2016-2019)


• PTS Brokerage (2019-Present)

The Allegations 

• In April 2009, a customer alleged that Jesse Kovacs made an investment recommendation that was unsuitable due to its vulnerabilities to fluctuations in the stock market. This case was settled for $25,000 in damages.


• In April 2019, a customer alleged that Kovacs recommended she invest into a promissory note held by another individual who owned an auto body shop. This case was settled for $85,000 in damages.


• In May 2019, Kovacs was discharged from his member firm The O.N. Equity Sales Company due to a violation of firm policy related to private securities transactions.


• In August 2020, Kovacs was suspended by FINRA for allegedly participating in a private securities transaction without providing prior written notice to his member firm. The findings stated that Kovacs introduced two of his customers at the firm for the purpose of negotiating a loan from the first customer to a business owned by the second customer. As a result of these findings, Kovacs was suspended from acting as a securities broker in all capacities for a period of three months.

What Does This Mean?

Securities brokers are not allowed to engage in any private securities transactions without first disclosing it to their member firms. This is because these types of transactions can often create significant conflicts of interest for securities brokers. Brokers may begin recommending private alternative investments to customers that are financially unsuited for them based on their investment objectives or risk tolerance. It is the securities firm's job to prevent investors from being harmed by broker conflicts of interest. That is why brokers are supposed to disclose any involvement in these outside activities to their member firm. However, a broker forgoing this procedure of disclosure does not absolve the firm from liability. Securities firms need to have procedures in place designed to adequately monitor their registered brokers and prevent them from engaging in any unauthorized activities.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money due to this fraud or negligence may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Jesse Kovacs, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.