Scott Kozak Sanctioned By FINRA For Allegedly Soliciting Private Investments

The law firm of Oakes & Fosher is currently investigating the alleged misconduct of securities broker Scott Kozak. According to his publicly available FINRA BrokerCheck report, Scott Kozak had been the subject of multiple customer disputes.

Scott Kozak was a Colorado-based securities broker who had worked in the securities industry for nineteen years. During his career, he was  registered with three different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations 

• Programmed Equities Corporation (1989-1989)


• Financial West Group (2000-2001)


• Cetera Advisors (2001-2018)

The Allegations 

• In October 2008, a customer alleged that Scott Kozak had misrepresented investments and failed to follow instructions to place trades. This case went to arbitration where the customer was awarded $51,750 in damages.


• In December 2008, customers alleged that Kozak did not follow their request to liquidate positions from a non-qualified account, and instead liquidated positions in a qualified account. This case was settled for $27,500 in damages.


• In July 2018, Kozak was discharged from his position at Cetera Advisors for allegedly violating firm policy prohibiting personal securities transactions.


• In March 2020, Kozak was officially sanctioned by FINRA for allegedly participating in three sets of private securities transactions without providing prior written notice to his member firm, collectively soliciting firm customers and registered representatives to invest $1,166,000 in the securities of two companies. As a result of these findings Kozak was suspended from acting as a securities broker in all capacities for a period of two years and fined $10,000.

What Does This Mean?

Securities brokers are not allowed to engage in any private securities transactions without first disclosing it to their member firms, as these types of actions can often create significant conflicts of interest.  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 Scott Kozak, 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.