Gerald James O’Halloran of Punta Gorda Florida a stockbroker formerly registered with Kovack Securities Inc. is the subject of a customer initiated investment related written complaint which was settled for $24,000.00 in damages on May 29, 2020 based upon allegations that the customer had been placed into unsuitable real estate securities and stocks by O’Halloran during the time that O’Halloran was associated with Kovack Securities.
O’Halloran has been referenced in eight additional customer initiated investment related disputes containing accusations of his misconduct while employed by AG Edwards Sons Inc. and Kovack Securities Inc. Financial Industry Regulatory Authority (FINRA) Public Disclosure confirms that a customer initiated investment related complaint concerning O’Halloran’s conduct was settled for $9,609.82 in damages founded on allegations that unauthorized transactions were executed by O’Halloran when he was associated with Edward Jones. The complaint alleges that the customer’s mutual funds had been improperly sold and then the proceeds had been allocated into an annuity.
O’Halloran is referenced in another customer initiated investment related written complaint which was settled for $8,646.30 in damages supported by accusations that unauthorized stock trades were effected in the customer’s account. O’Halloran is also the subject of a customer initiated investment related FINRA securities arbitration claim where the customer was awarded $76,565.08 in damages based upon Kovack Securities being found liable on the customer’s claims of unsuitable recommendations. The Panel found that the stocks purchased for the customer’s account were unsuitable for the customer given their future earnings prospects and their investment experience. The Panel also found that the customer’s account had been overconcentrated in an aggressive stock.
The stockbroker is also the subject of another customer initiated investment related written complaint which was settled for $14,000.00 based upon allegations that reverse convertible notes had been traded in the customer’s Kovack Securities account without the customer’s authorization.
On August 17, 2017, an additional customer initiated investment related FINRA securities arbitration claim involving O’Halloran’s conduct was resolved for $60,000.00 in damages founded on accusations of a breach of contract and a breach of fiduciary duty by the stockbroker with respect to a real estate investment trust that had been sold to the customer. FINRA Arbitration No. 16-02140. According to the claim, Kovack Securities negligently supervised O’Halloran. The claim also alleges that misrepresentations and omissions had been made by the stockbroker concerning REITs, and that his negligence resulted in the customer’s damages.
O’Halloran has also been fined $4,000.00 by Florida Office of Financial Regulation and ordered to cease and desist violating Florida securities laws according to a Final Order containing findings of O’Halloran engaging in undisclosed outside business activities during the period that he was associated with Kovack Securities. Case No. 60484, 70701 (Sept. 20, 2018). The Office determined that O’Halloran also signed incomplete customer authorization documents and had neglected to maintain the blotter used by his branch office.
O’Halloran’s registration with Kovack Securities has been terminated as of March 2, 2018. He has been registered with Union Capital Company since December 4, 2018.