DID DAVID STANLEY KOVACH CAUSE YOU INVESTMENT LOSSES?
About David Kovach of Creative Planning?
David Kovach (CRD #2069842) , located in Berwyn, Pennsylvania, has been in the securities industry since 1990, with over three decades of experience. He has worked for multiple firms, including APW Capital, Inc., Cambridge Investment Research, Inc., and Capital Analysts, Inc. He holds credentials such as a Chartered Financial Consultant designation and has passed key securities exams, including the Series 7 and Series 63 exams. His recent affiliation was with Creative Planning, LLC, as an investment advisor representative.
Investment Losses? Let’s talk.or, give us a ring at (800) 732-2889.
David Kovach Customer Complaints and Reviews
David Kovach’s record includes two disclosure events involving customer disputes.
- Complaint 1:
- Date: July 7, 2014
- Allegation: A complaint was filed alleging that Mr. Kovach sold a fixed annuity in December 2011 that was unsuitable for the customer’s needs. The complainant argued that the annuity, valued at $119,631.56, provided payments until the client’s passing, which occurred sooner than anticipated.
- Outcome: The matter was settled for $100,578.96. Mr. Kovach denied any wrongdoing, stating that he acted in the client’s best interest and did not contribute to the settlement.
- Complaint 2
- Date: March 6, 2014
- Allegation: Plaintiffs alleged negligent supervision of a former representative under Mr. Kovach’s oversight, who was involved in fraudulent activities between 2006 and 2012. Claims included breach of fiduciary duty, professional negligence, and violation of Pennsylvania state laws.
- Outcome: The case was settled for $85,000, with no individual contribution from Mr. Kovach. He denied allegations, stating the settlement was made to avoid litigation costs.
Allegations Against David Kovach
The accusations in Mr. Kovach’s disclosure events are summarized as follows:
- Fixed Annuity Sale:
- The suitability of the fixed annuity was questioned due to the policy’s payout structure being insufficient for the complainant’s circumstances after the customer’s premature death. The allegations included failure to adequately assess the financial implications.
- Settlement was achieved without admission of guilt by Mr. Kovach.
- Negligent Supervision:
- Alleged failure to supervise a representative who engaged in fraudulent activities, resulting in financial losses. Specific accusations included breach of fiduciary duty and professional negligence.
- The settlement was made without any admission of liability.
David Kovach Employment History
Employment History:
- Creative Planning, LLC (09/2023 – Present)
- Kistler-Tiffany Advisors (11/2007 – 09/2023)
- APW Capital, Inc. (05/2012 – 12/2021)
- Cambridge Investment Research, Inc. (01/2008 – 05/2012)
- Capital Analysts, Inc. (07/1990 – 12/2007)
- Current Status: Not actively registered as a broker.
Exams Passed:
- Series 7 (General Securities Representative) – July 1990
- Series 63 (Uniform Securities Agent State Law) – August 1990
- Professional Designation: Chartered Financial Consultant
Investment Advisors Owe Clients The Highest Level Of Care
Investment advisors have a fiduciary duty to act in their clients’ best interests, requiring transparency, honesty, and loyalty. Advisors must disclose all material facts, including risks and conflicts of interest, related to any investment strategy or transaction. The duty of care obligates advisors to conduct thorough due diligence and provide advice tailored to the client’s financial situation and goals. This ensures informed decision-making and protects clients from potential harm arising from undisclosed risks or misaligned strategies.
Option Trading Can Be Extremely Risky
Options trading is inherently risky, often involving leveraged positions that can amplify both gains and losses. Advisors’ trading options in client accounts must be transparent about the associated risks. Strategies like naked calls, which involve selling options without holding the underlying asset, are particularly high risk. For example, a naked call can result in unlimited losses if the underlying stock price surges. Clients should carefully evaluate their risk tolerance and ensure they understand potential outcomes before authorizing such trades.
David Kovach Red Flags & Your Rights As An Investor
Of course, David Kovach did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Creative Planning on alert to review carefully the activity and performance of their accounts and question whether David Kovach has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at Creative Planning also raises questions about the brokerage firm’s supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor.
Did You Lose Money Because of Broker Misconduct?
If you have lost money due to negligence or fraud by a stockbroker or advisor, the easiest way to know if you have a case is to call our office at 800-732-2889. Our investment fraud attorneys will evaluate your claim for free and let you know if we can help you recover your losses.
Need Legal Help? Let’s talk.or, give us a ring at 561-338-0037.
File A Claim To Recover Your Investment Losses At Creative Planning Due To David Kovach
If you have questions about about Creative Planning and/or David Kovach and the management or performance of your accounts, please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.
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