Former broker Howard Kavinsky has been barred from the securities industry following a customer complaint filed in mid-2024. The complaint filed against Kavinsky accuses him of withholding financial statements, misrepresenting account values, and making unauthorized fund withdrawals. This article examines the details of the complaint along with new details about his bar from the industry, the broader implications of broker misconduct, and the protections available to investors under financial regulations.
If you or someone you know has been impacted by Howard Kavinsky or another broker, don’t hesitate to reach out to Meyer Wilson today. Our attorneys are experienced in broker misconduct cases and will help to guide you through the process with a free consultation.
Allegations Against Howard Kavinsky
Details of the Investor Complaint
In June 2024, an investor filed a significant complaint against Howard Kavinsky (CRD#: 5881623), who has been in the securities industry for 13 years. The allegations include:
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Withholding financial statements – Clients claim Kavinsky refused to provide copies of their statements, making it difficult to track their investments.
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Misleading account information – Allegedly, he provided false or misleading financial data regarding account balances.
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Unauthorized fund withdrawals – The complaint states that Kavinsky removed funds from qualified retirement accounts without authorization.
Qualified accounts, such as 401(k)s and IRAs, have tax advantages, and unauthorized withdrawals can result in severe financial penalties for investors. The claimants are seeking $760,000 in damages, underscoring the seriousness of the allegations.
As of February 2024, the complaint remains pending with FINRA, and Kavinsky’s full response has not been publicly disclosed. Right before this complaint was released, however, B. Riley foreshadowed what was to come:
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May 2024: B. Riley Wealth Management terminated Kavinsky’s registration, citing multiple violations:
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Misrepresentation of customer account values
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Fabrication of customer statements purportedly from a clearing firm
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Failure to forward customer grievances to the firm
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Non-compliance with firm procedures related to client reports
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Now, as we will discuss, Kavinsky is facing a much larger issue after an investigation through FINRA revealed evidence of misconduct beyond the initial investor complaint.
Response and FINRA Involvement
As of December 20, 2024, Howard Kavinsky has been barred from the securities industry following an extensive investigation by FINRA. Without admitting or denying the findings, Kavinsky consented to the sanction and to the entry of findings that he falsified at least 190 consolidated account statements for at least eight customers, some of whom were seniors. These statements overstated customer account balances and reflected fictitious investments in a hedge fund that did not exist.
The findings also revealed that Kavinsky knowingly misrepresented account values to multiple clients, falsely reporting that a portion of their funds had been invested in a hedge fund when no such investments had actually been made. Further complicating his case, Kavinsky provided false and misleading information to FINRA investigators.
When FINRA requested he disclose all customers for whom he had misrepresented account values, he falsely identified only a married couple who had already filed complaints. In reality, he had overstated account values for at least eight customers. Additionally, during on-the-record testimony, Kavinsky repeatedly denied ever informing customers that they had investments in hedge funds, despite evidence proving otherwise.
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Understanding Financial Misconduct and Investor Rights
Financial misconduct covers a broad spectrum of unethical or illegal activities within the financial services industry. In Kavinsky’s case, the allegations include misrepresentation of client account values and unauthorized fund withdrawals. Other common forms of financial misconduct include unauthorized trading, which involves executing transactions without client consent, and churning, where excessive trading is conducted to generate commissions.
If an advisor falsely inflates account balances to prevent withdrawals or switching firms, it constitutes deception and a breach of fiduciary duty. Such actions not only harm individual investors but also undermine trust in the financial system.
Protecting Investor Rights
Investors have specific rights under both state and federal law. Protections include regulatory oversight, where financial regulatory bodies investigate misconduct allegations, and investor recourse, allowing investors to file complaints with FINRA, the SEC, or other regulatory agencies. Arbitration and legal action are also options, enabling affected investors to seek financial recovery through legal means.
If you believe you have been impacted by financial misconduct, seeking legal guidance can help you navigate the complexities of investor protection laws.
How Meyer Wilson Helps Investors Affected by Broker Misconduct
The allegations against Howard Kavinsky underscore the importance of investor protections and regulatory oversight in the financial industry. While the complaint remains under review, the case highlights the serious consequences of financial misconduct and the need for investor vigilance.
If you or someone you know has suffered losses due to the actions of brokers like Howard Kavinsky, the experienced attorneys at Meyer Wilson are here to help. With more than 20 years in the industry and over $350 million recovered for our clients, our focus on investment fraud and securities litigation has helped many investors recover their losses. Contact us today for a free consultation to discuss your case and learn how we can assist you in protecting your financial interests.
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