Robert Prettyman, Kovack, Broker Investigation: Delaware Action Raises Red Flags
State securities regulators in Delaware have taken enforcement action tied to broker Robert Prettyman, for ongoing concerns about broker disclosures, regulatory history, and supervision within the securities industry.
According to a November consent order issued by the Delaware Department of Justice’s Investor Protection Unit, inaccurate and incomplete disclosures were allegedly made in connection with efforts by Kovack Advisors Inc. to register Prettyman in 2021. While the enforcement action was directed at the firm, the findings place renewed attention on Robert Prettyman’s regulatory background and employment history.
Regulatory History of Broker Robert Prettyman
FINRA BrokerCheck records show that Robert Prettyman has been temporarily barred twice from the securities industry by the Delaware Investor Protection Unit—first in 2021 and again in 2024. He is not currently registered with any FINRA broker-dealer or registered investment advisor.
The Delaware action stemmed from alleged failures to properly disclose information regarding Prettyman’s prior investigation history during the registration process.
Delaware Allegations Involving Prettyman’s Hiring
In its consent order, the Delaware Department of Justice alleged that Kovack Advisors filed inaccurate registration materials that failed to disclose a prior investigation involving Prettyman. Regulators also found alleged failures in supervision, recordkeeping, and document preservation.
The Investor Protection Unit further alleged that the firm provided inaccurate responses to regulatory inquiries and, when asked to produce required pre-employment correspondence, created and backdated dozens of pre-employment letters that were placed into personnel files.
Kovack Advisors agreed to pay $985,000 to resolve the matter without admitting or denying the state’s findings.
For additional firm-level regulatory history, investors can review our related post on Kovack Advisors and Kovack Securities.
Why Broker Disclosure Histories Matter to Investors
A broker’s regulatory and employment history is a critical factor for investors evaluating risk. FINRA rules and state securities laws require firms to disclose investigations, disciplinary actions, and other material events so investors can make informed decisions.
When a broker’s background is not fully disclosed—or when supervision is allegedly inadequate—investors may unknowingly face increased risk of unsuitable recommendations or other misconduct.
Investor Losses and Potential Claims
Investors who worked with Robert Prettyman or were affected by recommendations made during periods of alleged disclosure failures may have legal options. Claims may include unsuitable investment recommendations, failure to supervise, or misrepresentations, depending on the facts of each case.
How The White Law Group Can Help
The White Law Group represents investors nationwide in FINRA arbitration and other securities claims involving broker misconduct and disclosure violations. Our firm reviews regulatory actions and BrokerCheck disclosures to identify potential investor recovery options.
If you suffered investment losses and have questions about a broker’s background or your legal rights, contact The White Law Group for a confidential, no-obligation consultation.
FAQs About Broker Robert Prettyman
Who is Robert Prettyman?
Robert Prettyman is a former securities broker who has been the subject of regulatory actions by the Delaware Department of Justice’s Investor Protection Unit. He is not currently registered with a FINRA broker-dealer or registered investment advisor.
Has Robert Prettyman been disciplined by regulators?
Yes. According to BrokerCheck records, Prettyman has been temporarily barred from the securities industry twice—once in 2021 and again in 2024—by Delaware securities regulators.
Can investors file claims related to Robert Prettyman?
Possibly. Investors who suffered losses while working with Robert Prettyman may have recovery options through FINRA arbitration or other legal avenues, depending on the facts and timing of their investments.
Last modified: December 15, 2025
