Former New Jersey Ameriprise Financial Registered Representative Consents to FINRA Sanctions to Resolve Allegations for Participating in Private Securities Transactions without Firm ApprovalWednesday, June 3, 2020
The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) in which former general securities representative Robert (Bob) Korzik consented to sanctions to resolve allegations of participating and soliciting private securities transactions without prior written approval from his associated brokerage firm.
Since obtaining his broker license in 1985, Korzik has been associated with three FINRA member firms: Robert W. Baird & Co. Incorporated in Milwaukee, Wisconsin from March 1985 to January 2002; Northwestern Mutual Investment Services, LLC in Montvale, New Jersey from April 1982 to October 2011; and Ameriprise Financial Services, Inc. (Ameriprise) in Little Falls, New Jersey from October 2011 to October 2017. Ameriprise terminated Korzik for allegedly violating company policy related to private securities transactions.
Shortly after his termination from Ameriprise, FINRA Department of Enforcement began investigating Korzik’s alleged participation in and solicitation of Ameriprise customers to invest in private securities transactions without providing prior notice to or obtaining approval from Ameriprise. According to the AWC, Korzik invested $50,000 in a private securities transaction involving an energy company, for which his friend was the CEO, and further solicited and facilitated approximately $550,000 from three firm customers for the company’s $1.2 million private offering. FINRA also alleges that Korzik violated FINRA rules regarding content standards for communications with the public by forwarding an email containing sales communications concerning the private securities transactions to potential investors. Based on the foregoing, Korzik violated FINRA Rule 2210, 3280 and 2010.
Without admitting or denying the allegations made against him, Robert Korzik consented to a suspension from associating with any member firm in any capacity for nine months and an $8,500 fine.
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