Did you lose money with James D. Helgeson, a former Kovack Securites financial adviser? If so, those investment losses might be recoverable against his former employer. Helgeson was recently sanctioned by his main regulator. James Helgeson consented to a one-month suspension and a fine of $5,000 from the Financial Industry Regulatory Authority (FINRA) without denying or admitting FINRA’s factual findings.
Helgeson posted advertisements on the Internet to recruit investors to a subscription-based, penny auction website known as Zeekler on which auction participants paid a fee to place bids, usually $.45 to .99 per bid, on electronic and consumer goods, according to FINRA. Rex Ventures operated Zeekler and solicited individuals to invest in its “rewards” program, which promised “Qualified Affiliates” a share of up to 50% of the daily profits earned by Rex Ventures and Zeekler. Helgeson become an affiliate of Rex Ventures in December 2008, according to FINRA. Helgeson, on behalf of Rex Ventures, posted Internet advertisements on a daily basis on various advertising websites as part of Rex Ventures’ internet marketing campaign for its Zeekler auction website, according to securities regulators. By placing ads, Helgeson was allegedly compensated by earning VIP Rewards points which could be redeemed for cash on a one point-to-one dollar basis.
If you lost money with Helgeson, some, or all, of those investment losses might be recoverable through the FINRA arbitration process against his former employer, Kovack Securities. The firm was obligated to reasonably supervise him while affiliated with the firm. If you’d like a free consultation with an attorney, please call us.