Jesse Joseph Holovacko, of South Amboy, New Jersey, a stockbroker formerly registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated, has been sanctioned by the State of New Jersey Bureau of Securities via a $75,000.00 fine accompanied by the revocation of his securities registration pursuant to a Summary Revocation and Penalty Order containing findings that Holovacko made fraudulent omissions and misrepresentations to customers. In the Matter of Jesse J. Holovacko (May 13, 2015).
According to the Order, in December of 2013, Holovacko solicited customer SK for the purchase of bonds by claiming that the investments would return seven and one-half percent on an annual basis. Evidently, SK was told to transfer monies from the customer’s individual retirement account to a bank account that SK controlled, where the funds would subsequently be made payable to Holovacko via cashier’s checks. SK followed through as instructed, wherein a total of $242,000.00 was reportedly provided to Holovacko via seventeen cashier’s checks to make the bond purchases.
The Order stated that Holovacko, without SK’s consent, then placed $242,000.00 into a personal savings account that he controlled, wherein he utilized funds from the account to pursue gambling ventures and pay for lavish dinners rather than invest in bonds on SK’s behalf as the customer expected. Further, the Order revealed that SK was never provided any account documentation or information in reference to the transactions even though it was requested of him on multiple occasions.
The State of New Jersey Bureau of Securities consequently found that Holovacko’s fraudulent activities were violative of N.J.S.A. 49:3-52(a), and his omissions and misrepresentations constituted a violation of N.J.S.A. 49:3-52(b).
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that on January 20, 2016, Holovacko was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that he failed to provide FINRA staff with information about his business activities. Case No. 2014042692001 (Oct. 14, 2014). Holovacko was reportedly investigated by FINRA in September of 2014, at which point he was called upon by FINRA staff to provide documentation in reference to the allegations of misappropriation which Merrill Lynch cited as the basis of Holovacko’s termination. Holovacko’s counsel informed FINRA in October of 2014 that Holovacko would at no point provide the information requested, nor would he further cooperate in FINRA’s investigation.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Holovacko has been identified in eight additional customer initiated investment related disputes containing allegations of his misconduct while employed with Merrill Lynch and UBS Financial Services, Inc. Specifically, on January 30, 2015, a customer initiated investment related written complaint involving Holovacko’s conduct was settled for $20,207.70 in damages based upon allegations that he made misrepresentations to the customer concerning a variable annuity investment.
Subsequently, on February 24, 2015, a customer initiated investment related written complaint regarding Holovacko’s activities was resolved for $8,905.68 in damages based upon allegations that he misrepresented and omitted the terms and conditions of an annuity, and effected an unsuitable annuity contract for the customer. Moreover, on September 1, 2016, another customer initiated investment related written complaint involving Holovacko’s conduct was settled to resolve allegations that Holovacko effected mutual fund trades without the customer’s consent, and induced a variable annuity purchase by making misrepresentations about the product.
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