Investment Losses with John Kakonikos
According to FINRA, John Kakonikos (CRD #4017356, Flushing, New York) was assessed a deferred fine of $10,000, suspended from association with any FINRA member in any capacity for 18 months, and ordered to pay deferred restitution in the amount of $72,524.53, plus interest, to a customer.
FINRA alleges that Kakonikos engaged in excessive and unsuitable trading in a customer’s account, causing realized trading losses of $72,524.53, while generating $41,617.56 in fees and commissions. The findings also alleged that Kakonikos purportedly recommended and executed securities transactions in the customer’s account.
Due to the customer’s financial situation, lack of investment experience and needs, and requiring a minimum return of nearly 50 percent just to break even, Kakonikos’ trading in the customer’s account was allegedly excessive and quantitatively unsuitable for the customer.
The findings also alleged that Kakonikos effected purchase and sale securities transactions in the customer’s account without her authorization, knowledge or consent. Overall, the account generated $53,168.22 in cumulative costs, including margin interest.
For FINRA’s full findings see FINRA Case #2015045718701.
According to FINRA BrokerCheck, Kakonikos was registered with Southeast Investments in East Meadow NY from02/18/2014 – 02/24/2016 and Caldwell International Securities in Lake Success, NY from 08/18/2010 – 02/19/2014. He has 18 disclosures listed on his Broker Report including five customer complaints. Allegations include misrepresentation, excessive trading and churning. His current suspension is in effect from November 21, 2016, through May 20, 2018.
Recovery of Investment Losses
Brokers have a fiduciary duty to make investment recommendations that are consistent with the clients net worth, investment experience and objectives. Risk tolerance, age, and liquidity needs also need to be considered. Furthermore, brokers are prohibited from engaging in underhanded businesses practice, like churning, that violate securities laws and regulations.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
If you suffered losses investing with John Kakonikos, the attorneys of The White Law Group may be able to help you recover your losses. For a free consultation with a securities attorney, please call 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, visit www.WhiteSecurtiesLaw.com.