Securities fraud attorneys are currently investigating claims on behalf of investors who suffered significant losses as a result of fraud involving unregistered securities. Reportedly, in December 2013 a lawsuit was filed on behalf of the New Jersey Bureau of Securities by the Division of Law against George J. Bussanich and his son George Bussanich, both former brokers for Kovack Securities. Administrative action has also reportedly been taken against the Bussanichs by the bureau chief.
Allegedly, the Bussanichs defrauded 26 investors out of $3.5 million using the sale of unregistered notes. Furthermore, it has been alleged that the Bussanichs used their clients’ money to purchase exotic vehicles including a Ferrari and two Maseratis, three homes and to fund other personal expenses.
According to the New Jersey Bureau of Securities, “investors allegedly were told that the money would be used for MetropolitanAmbulatorySurgicalCenter LLC and George J. Bussanich’s other companies. Contrary to its name, MetropolitanAmbulatorySurgicalCenter LLC, which has a Cliffside Park business address, is not a surgical center but rather a holding company controlled by George J. Bussanich. The investors purchased notes which carried a 6 to 8 percent annual rate of return.”
According to stock fraud lawyers, Financial Industry Regulatory Authority Rules have established that firms must properly supervise brokers’ activities while they are registered with the firm. Because George J. Bussanich was registered with Kovack Securities from October 2006 through December 2011, securities fraud attorneys say that Kovack Securities could be held responsible for Bussanich’s activities during that time and, thus, could be ordered to compensate his clients for losses sustained for the period he was registered with the firm.
If you suffered significant losses as a result of fraud relating to the sales of unregistered securities, you could have a valid securities arbitration claim. To find out more about your legal rights and options, contact a stock fraud lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or email@example.com for a no-cost, confidential consultation.