Securities Lawyers Blog

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Frank Lumpuy (Lumpuy), previously associated with Kovack Securities INC., has at least 2 disclosable events. These events include one customer complaint, one regulatory event, alleging that Lumpuy recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a final customer complaint on May 05, 2025.

Without admitting or denying the findings, Lumpuy consented to the sanctions and to the entry of findings that he engaged in an OBA without providing his member firm with complete and accurate written notice of his activities. The findings stated that Lumpuy disclosed to his firm that he was a passive investor in two companies that were formed for the purpose of real estate investment. However, without providing any notice to or receiving approval from the firm, Lumpuy worked as an owner-manager for these companies. Ln this role, Lumpuy managed real estate rental properties, negotiated leases, signed annual corporate filings, and facilitated communications between the companies’ members, counsel, and investors. Lumpuy also inaccurately affirmed on multiple annual compliance questionnaires that he was fully in compliance with the firm’s policies and procedures. Moreover, on one occasion, the firm specifically asked Lumpuy to disclose whether any firm customers were also investors in the companies. Lumpuy failed to disclose that one of his firm customers had been an investor in the companies since approximately two years before he disclosed that he was a passive investor.