The Schwartz Law Firm Investigates Frank Lumpuy of Kovack Securities

Schwartz Law is currently investigating claims against Frank Lumpuy, who was formally registered with Kovack Securities, Inc. and Kovack Advisors, Inc. Lumpuy has been in the securities industry for 32-years and is currently registered with SB Advisory, LLC. Lumpuy’s Termination from Kovack Securities Kovack terminated Lumpuy’s registration on February 23, 2024 pending the outcome of its internal investigation regarding allegations that Lumpuy received loans from a client and used those funds to make real estate investments. Upon information and belief, it is suspected that Lumpuy engaged in this investment related outside business activity which was not approved by Kovack. At least one of Lumpuy’s former clients has filed a complaint Kovack regarding the alleged unapproved real estate investment outside business activity. We are seeking information from anyone who has had dealings with Lumpuy, or who has experienced investment-related losses while working with Lumpuy. Lumpuy’s Disclosure History Lumpuy has a checkered disclosure history that begins in 2002 when he created fake statements that were provided to a client in an effort to cover up investment losses of $213,027. In 2006, Lumpuy reimbursed a client who suffered losses in an investment account without the firm’s approval. In 2007, Lumpuy entered into an agreement with FINRA related to the unauthorized settlement/reimbursement with the aforementioned client. Lumpuy also short sold his home in 2015. What is an Outside Business Activity? FINRA Rule 3270 prohibits a financial advisor from receiving compensation from any person or entity that is outside the scope of the brokerage firm, without providing written notice to the firm. Outside business activity can includes:

• Making real estate investments for clients that are not approved by the firm;
• Working as an employee for another company;
• Working as an independent contractor for another company;
• Serving as an officer, director, or partner of any outside board or organization;
• Receiving payment for any outside services; and
• Having the reasonable expectation of being paid for any outside business activities.

If you have suffered losses as a result of Frank Lumpuy, we would like to hear from you. We are currently investigating claims on behalf of clients who have suffered significant losses in their investment portfolios. The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at 866-618-0545 or email Matthew Schwartz directly at mschwartz@tslfirm.com.