Frank Lumpuy Suspended by FINRA Over Alleged Outside Business Activity

Frank Lumpuy (CRD #: 2108307), a broker formerly registered with Kovack Securities, was suspended by FINRA, according to his BrokerCheck record, accessed on July 30, 2025. Keep reading for more details. 

Suspension by FINRA

On May 5, 2025, Frank Lumpuy consented to the entry of findings that he allegedly engaged in an outside business activity without fully informing Kovack Securities.

According to a Letter of Acceptance, Waiver & Consent (AWC), Frank Lumpuy allegedly disclosed his role as a passive investor in two LLCs to the firm in 2006. From September 2014 through December 2023, he allegedly worked as an owner-manager for these entities without notifying his firm.

Frank Lumpuy’s services in this role allegedly included negotiating leases for and managing rental properties, signing annual corporate filings on behalf of the LLCs, and facilitating communications between members of the LLC, legal counsel, and investors.

Kovack Securities allegedly made several inquiries as to whether any firm customers were also investors in the LLCs, but Frank Lumpuy allegedly failed to disclose that one of his clients had been an investor in one of them since approximately 2004.

Further, Frank Lumpuy allegedly inaccurately claimed on several annual firm compliance questionnaires that he was in full compliance with its policies and procedures.

The AWC concluded that these allegations constituted violations of FINRA Rules 3270 and 2010.

FINRA Rule 3270

FINRA Rule 3270 requires brokers to disclose any business activities they engage in outside their firm, as well as any compensation they may receive from these activities.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Violations of FINRA Rule 3240 may violate this rule. 

Sanctions

Frank Lumpuy consented to the following sanctions:

• Two-month suspension from associating with FINRA members
• $5,000 fine

His suspension ran from May 5 to July 4, 2025. You can read the full AWC here.

Other business activities

Frank Lumpuy’s detailed BrokerCheck report discloses his involvement in the following outside business activities: he works as an insurance agent selling fixed insurance, and collects rent, insurance, and taxes for Sasa Del Medio LLC and Sancti Spiritus LLC.

Termination from Kovack Securities

On February 23, 2024, Kovack Securities fired Frank Lumpuy following allegations involving a loan. 

Investor Dispute

On January 8, 2024, an investor alleged that she suffered losses in her accounts and that Frank Lumpuy borrowed money from her. This dispute was settled for $120,000.

FINRA Rule 3240

FINRA Rule 3240 describes the limited circumstances under which brokers may borrow from or lend to clients, such as loans between immediate family members.

Background Information 

Frank Lumpuy has passed the following exams: 

• Series 65 Uniform Investment Adviser Law Examination 
• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination
• Series 6 Investment Company Products / Variable Contracts Representative Examination 
• Series 24 General Securities Representative Examination 
• Series 26 Investment Company Products/Variable Contracts Principal Examination 

During his 34 years of experience, Frank Lumpuy has passed the following exams: 

• Kovack Securities (CRD #: 44848) 
• Newbridge Securities Corporation (CRD #: 104065) 
• High Mark Securities (CRD #: 42467) 
• AXA Advisors (CRD #: 6627) 
• The Equitable Life Assurance Society of the United States (CRD #: 4039) 

Kurta Law Can Help 

If you have worked with Frank Lumpuy and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Do not let securities fraud go unchecked. Start your recovery process today.