Jesse Kovacs (ONESCO) Disciplined By FINRA

ONESCO Broker Jesse Kovacs Suspended By FINRA, Accused Of Sales Practice Violations By Investors

FINRA BrokerCheck contains important disclosures regarding securities broker Jesse Todd Kovacs (CRD#: 5047161, Forked River, New Jersey). Specifically, FINRA suspended Kovacs as a securities broker in September 2020 to resolve allegations that he engaged in a private securities transaction in violation of FINRA rules when he worked for ON Equity Sales Company (ONESCO). It also appears that investors disputed Kovacs’s sales practices, with some of Kovacs’s clients alleging damages because of his recommendations. Here’s a summary of those disclosures.

FINRA Disciplines Jesse Kovacs For Allegedly Selling Away

Evidently, Jesse Kovacs accepted a 3-month suspension as a securities broker to resolve the financial industry watchdog’s allegations of his private dealings involving ONESCO clients in violation of FINRA Rules 3280 and 2010. It appears that in 2018, Kovacs facilitated a $150,000 loan that one client made to another client. It seems that this involved a promissory note, which FINRA deemed a security.
Moreover, from 2018 to 2019, Jesse Kovacs was still involved with those clients, including his work with addressing a possible amendment to the terms of a promissory note. FINRA says that all of Kovacs’s activities with these clients fell outside the scope of his work with ONESCO. Kovacs did not get permission from his employer for these activities. It appears that ONESCO discharged Kovacs for private securities transactions. Kovacs now works at PTS Brokerage LLC as a securities broker and financial advisor.

Client Alleges Kovacs Recommended Promissory Note Resulting In Damages

Notably, a client of ONESCO filed a FINRA Arbitration Claim regarding Jesse Kovacs’s recommendations. Supposedly, Kovacs recommended that the client take $150,000 from their brokerage account and invest in a promissory note. Allegedly, Kovacs caused the client to incur damages. For this reason, ONESCO paid the client $85,000 in May 2020 to resolve this matter.

Prior Disputes About Jesse Kovacs Allege Unsuitability, Failure To Disclose Fees

It appears that in June 2016, an investor disputed Jesse Kovacs’s actions at Hornor Townsend Kent. Specifically, the client claims that Kovacs failed to tell them the fees on purchasing a variable annuity. However, Hornor Townsend Kent denied this dispute.
In addition, a Securian Financial Services client took aim at Jesse Kovacs in a 2009 dispute. Namely, the client alleged unsuitability regarding a variable annuity. Supposedly, they intended to avoid market risk, and Kovacs caused them damages by having them invest in an annuity containing market risk. It seems that Securian Financial Services paid the client $25,000 to settle this matter.

Did You Sustain Damages Through Kovacs?

Did Jesse Kovacs cause you to experience losses? If so, call Soreide Law Group at (888) 760-6552 and speak with a securities lawyer about a potential recovery of your losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered compensation for many United States investors who incurred losses because of their financial advisors and securities brokers. Please note that Kovacs denies all allegations of his sales practice violations.