Cova Capital

Cova Capital Partners has been fined $30,000 by FINRA for allegedly failing to conduct due diligence before recommending high-risk private placements to investors.

Between June 2018 and December 2021, Cova Capital brokers allegedly sold private placements without verifying their legitimacy or suitability. These included over $2 million in pre-IPO shares without confirming the issuer’s rights, $1.7 million in a private placement linked to a CEO with regulatory violations, and $9 million in pre-IPO shares connected to SEC-sanctioned individuals. FINRA also found that Cova failed to maintain a proper supervisory system to ensure compliance with best interest and suitability rules.

Private placements are high-risk, illiquid investments that should only be sold to accredited investors who can handle their risks. However, some brokers push these products onto retail investors to earn high commissions, disregarding their clients’ best interests.

If you invested in private placements through Cova Capital and suffered losses, you may have been misled. Contact ChapmanAlbin today to discuss your potential recovery options.