Matthew Zagon: $90K Complaint Against Cova Capital Advisor

Syosset, New York financial advisor Matthew Zagon (CRD# 2165362) allegedly misrepresented investments, according to a recent investor complaint. Financial Industry Regulatory Authority records show that he is registered as a broker with Cova Capital Partners.

Mr. Zagon’s BrokerCheck report discloses two investor complaints. The most recent, filed in August 2025, alleges that as a representative of Cova Capital Partners, he “misrepresented the future performance” of a private placement investment in KI Health. The pending complaint alleges damages of $80,000.

In a statement included with the disclosure, Mr. Zagon defended himself against the allegations. “Mr. Zagon denies he made any claims as to the performance of the investment in the Private Placement,” he wrote.

An earlier investor complaint, filed in 1998, alleged that as a representative of First Asset Management, he made misrepresentations regarding an over-the-counter equity investment. The complaint alleged damages of $51,800 and was denied by the firm.

For reference, securities industry rules and standard prohibit brokers like Mr. Zagon from making misrepresentations of material facts regarding the investments they recommend to their customers. Perhaps the most pertinent regulation regarding misrepresentation is FINRA Rule 2020, which stipulates that no broker shall “effect any transaction in, or induce the purchase or sale of, any security by means of any manipulative, deceptive or other fraudulent device or contrivance.” A material fact is a piece of information that would pose a significant consideration to investors considering a product or strategy, such as whether their principal investment would be protected. Brokers who misrepresent investments may be liable in the event of losses.

According to the Financial Industry Regulatory Authority, Matthew Zagon holds 19 years of securities industry experience. Based in Syosset, New York, he has been registered as a broker with Cova Capital Partners since 2015. He was previously registered with Sands Brothers International, Sands Brothers & Co., KSH Investment Group, Investec Ernst & Company, Joseph Dillon & Company, First Asset Management, GKN Securities, Prudential Securities, Bear Stearns & Company, Lehman Brothers, and Hanover Sterling & Company. His credentials include the passage of three securities industry qualifying exams: the Securities Industry Essentials Examination, or SIE; the General Securities Representative Examination, or Series 7; and the Uniform Securities Agent State Law Examination, or Series 63. He is licensed in California, Colorado, Connecticut, Florida, Indiana, Massachusetts, Missouri, New York, Pennsylvania, Puerto Rico, and Texas. (Information current as of October 8, 2025.)

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