Investor Alert > Ex-Ameriprise Financial Services Broker Robert Korzik Sanctioned by FINRA for Alleged Unapproved Private Transactions
Posted May 27, 2020
by Alan Rosca

Ex-Ameriprise Financial Services Broker Robert Korzik Sanctioned by FINRA for Alleged Unapproved Private Transactions

securities lawyersSecurities Lawyers Investigate Allegations Involving Broker Robert Korzik 

A New Jersey based previously registered broker and investment adviser Robert Nicholas Korzik was the subject of a regulatory action instituted against him by the Financial Industry Regulatory Authority (FINRA) leading to his suspension on the allegation of engaging in unapproved private transactions according to an investigation by securities lawyer, Alan Rosca.

Investor rights advocate Alan Rosca of the Rosca Scarlato LLC law firm is investigating conduct related to the suspension of former broker Robert Korzik by FINRA on the allegation of the previously registered broker participating in unapproved private transactions. Robert Korzik was last in the employment of Ameriprise Financial Services, Inc., a FINRA member firm until October 2017. He was also in the employment of the firm when he allegedly conducted the acts leading to the suspension by FINRA.

Robert Korzik was Suspended for Allegedly Engaging in Unapproved Private Transactions

According to publicly available information reviewed by the Rosca Scarlato securities lawyers, former broker Robert Korzik was suspended by FINRA on 26th May, 2020 for the allegations cited above as reported on his FINRA Brokercheck page. According to the reports, Robert Korzik, without denying or admitting the allegations, consented to an Acceptance, Waiver and Consent (AWC) order, thereby consenting to the sanctions.

Korzik was suspended in all capacities for a period of nine months beginning on 1st June, 2020 and ending on 2nd February, 2021. He was also required to pay civil and administrative fines to the tune of $8500. These sanctions were issued on the allegation that Robert Korzik violated FINRA Rules 3280 and 2010 by soliciting and facilitating the purchase of approximately $550,000 of private securities of an energy company by three customers of his firm.

bad broker investment recoveryRobert Korzik Allegedly Violated FINRA Rules By Recommending Private Securities Transaction to Firm Customers

The FINRA rules expressly prohibit unapproved private securities transactions and require any person registered with a member firm who seeks to participate in private securities transactions to get the approval of the member firm through a written notice to the firm detailing the proposed transaction and their role.

As reported in the AWC, the energy company which Robert Korzik allegedly sought investments for an energy company owned by Korzik’s friend, with Korzik also investing $50,000 of personal funds into the company. Korzik allegedly solicited and facilitated these private transactions by forwarding the emails and communications received in his officer email address from the energy company to three of his high net worth firm clients, while also allegedly attending meetings on their behalf without the written notice to or the approval of the firm according to the AWC.

It was also reported that when the firm discovered Robert Korzik’s involvement in these transactions, he allegedly denied that any of the clients had invested into the securities of the company and sought to buy out their shares. This is what allegedly led the firm to file a Form U5 against him in October 2017, which terminated his employment with the firm for “company policy violation related to private securities investments” as reported on his brokercheck page.

Robert Korzik is also the Subject of a Pending Customer Dispute

On January 4th 2019, a customer dispute was disclosed on Robert Korzik‘s Brokercheck Report. The client alleged that the respondents breached their fiduciary duty related to the management of their accounts by the respondents between 2011 and 2018. The client also further alleged that their accounts were not appropriately diversified and properly monitored. The client also alleged that one or both of the respondents engaged in unauthorized trading on the account. As reported on his FINRA brokercheck page, the client is seeking to recover $35,000 in damages from the dispute.

Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.

Securities LawyersInvested with Robert Korzik and Experienced Losses? Contact Our Securities Lawyers to Learn More About the Korzik Investigation and Potential Recovery Options

The securities lawyers at Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to Robert Korzik’s suspension on the allegation of participating in unapproved private securities transactions and his pending customer dispute. The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.

Investors who believe they lost money as a result of conducts related to Robert Korzik’s suspension on the allegation of participating in unapproved private securities transactions and his pending customer dispute, may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.

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DISCLAIMER

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.

If you believe you lost money as a result of investment-related fraud or misconduct, please contact our law firm for a free, no-obligation evaluation of your recovery options.

Contact us at 888‑998‑0530 or through the contact form on this page.
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