John Kostic, of Irvine, California, a stockbroker formerly registered with Finance 500, Inc., has been fined $10,000.00 and suspended for seven months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2015045360601 (Aug. 25, 2017).
According to the AWC, between December of 2012 and October of 2013, during which time Kostic was associated with Richfield Orion International, Inc. and Finance 500, Inc., he engaged in eleven securities transactions away from his employers without their knowledge and without ever procuring the firms’ authorization.
Particularly, between December 2012 and January of 2013, while associated with Richfield Orion International, Inc., Kostic made a $22,000.00 investment with a company. Then, from May of 2013 to October of 2013, while registered with Finance 500, Inc., he helped four Finance 500 customers as well as five non-firm customers to invest a total of $470,000.00. Given Kostic’s involvement in the securities transactions, the company compensated him a total of $42,000.00. FINRA found that Kostic’s private securities transactions were violative of FINRA Rule 2010 and NASD Rule 3040.
FINRA Public Disclosure reveals that Kostic has been identified in three customer initiated investment related disputes pertaining to allegations of his wrongdoing while he was associated with National Asset Management, Inc., Richfield Orion International, Inc., National Securities Corp., and Finance 500, Inc. Specifically, on September 11, 2015, a customer initiated investment related civil action involving Kostic’s conduct was settled for $135,000.00 in damages resting upon allegations that Kostic breached his fiduciary duties to the customer and negligently handled the customer’s insurance transactions.
Thereafter, on August 27, 2015, a customer initiated investment related written complaint regarding Kostic’s activities was resolved for $5,000.00 in damages resting upon allegations that Kostic made unsuitable investment recommendations, churned the customer’s account, and breached his fiduciary duties regarding the customer’s real estate investment trusts, options and equity investments. Moreover, on May 9, 2017, a customer initiated investment related written complaint involving Kostic’s conduct was settled for $350,000.00, where the customer’s claim was grounded upon allegations of unsuitable investment recommendations, breach of fiduciary duty, and violation of FINRA Rules and federal securities laws.
John Kostic, of Irvine, California, a stockbroker formerly registered with Finance 500, Inc., has been fined $10,000.00 and suspended for seven months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2015045360601 (Aug. 25, 2017).
According to the AWC, between December of 2012 and October of 2013, during which time Kostic was associated with Richfield Orion International, Inc. and Finance 500, Inc., he engaged in eleven securities transactions away from his employers without their knowledge and without ever procuring the firms’ authorization.
Particularly, between December 2012 and January of 2013, while associated with Richfield Orion International, Inc., Kostic made a $22,000.00 investment with a company. Then, from May of 2013 to October of 2013, while registered with Finance 500, Inc., he helped four Finance 500 customers as well as five non-firm customers to invest a total of $470,000.00. Given Kostic’s involvement in the securities transactions, the company compensated him a total of $42,000.00. FINRA found that Kostic’s private securities transactions were violative of FINRA Rule 2010 and NASD Rule 3040.
FINRA Public Disclosure reveals that Kostic has been identified in three customer initiated investment related disputes pertaining to allegations of his wrongdoing while he was associated with National Asset Management, Inc., Richfield Orion International, Inc., National Securities Corp., and Finance 500, Inc. Specifically, on September 11, 2015, a customer initiated investment related civil action involving Kostic’s conduct was settled for $135,000.00 in damages resting upon allegations that Kostic breached his fiduciary duties to the customer and negligently handled the customer’s insurance transactions.
Thereafter, on August 27, 2015, a customer initiated investment related written complaint regarding Kostic’s activities was resolved for $5,000.00 in damages resting upon allegations that Kostic made unsuitable investment recommendations, churned the customer’s account, and breached his fiduciary duties regarding the customer’s real estate investment trusts, options and equity investments. Moreover, on May 9, 2017, a customer initiated investment related written complaint involving Kostic’s conduct was settled for $350,000.00, where the customer’s claim was grounded upon allegations of unsuitable investment recommendations, breach of fiduciary duty, and violation of FINRA Rules and federal securities laws.
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