Haselkorn & Thibaut has opened an investigation into Syosset, New York financial advisor Matthew Zagon and his current firm Cova Capital Partners following recent investor complaints alleging investment misrepresentation. If you’ve worked with Matthew Zagon or have concerns about your investments with Cova Capital Partners, understanding the details of these complaints and potential red flags can help protect your financial interests.
Understanding the Recent Complaints Against Matthew Zagon
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According to FINRA records, Matthew Zagon (CRD# 2165362) faces a pending investor complaint from August 2025 that raises serious concerns. The complaint alleges that while representing Cova Capital Partners, he misrepresented the future performance of a private placement investment in KI Health, with alleged damages of $80,000.
What makes this particularly noteworthy is that this isn’t the first complaint on Matthew Zagon’s record. A previous complaint from 1998 alleged similar misrepresentations regarding an over-the-counter equity investment when he worked at First Asset Management. That complaint sought $51,800 in damages and was denied by the firm.
While Matthew Zagon has denied the recent allegations, stating he “made no claims as to the performance of the investment,” the pattern of similar complaints spanning decades deserves careful consideration by investors.
Key Red Flags for Investors to Consider
When evaluating your relationship with any financial advisor, certain warning signs deserve your attention:
1. Multiple Complaints with Similar Allegations
The presence of two complaints alleging misrepresentation – separated by over 25 years – suggests a concerning pattern. Even if complaints are denied or pending, multiple allegations of similar conduct warrant careful review of your own investment experiences.
2. Private Placement Investments
The recent complaint involves a private placement investment, which typically carries higher risks and less liquidity than publicly traded securities. These investments often require extra due diligence and clear communication about risks and potential returns.
3. Misrepresentation of Future Performance
No legitimate financial advisor can guarantee or misrepresent future investment performance. If you’ve received promises about specific returns or been told your investment “can’t lose,” these are serious red flags requiring immediate attention.
Matthew Zagon’s Professional Background at Cova Capital Partners
Understanding your advisor’s background helps evaluate their credibility and experience. Matthew Zagon brings 19 years of securities industry experience and has been registered with Cova Capital Partners since 2015. His extensive employment history includes positions at notable firms:
| Previous Firms | Bear Stearns & Company, Lehman Brothers, Prudential Securities, First Asset Management, and others |
| Licenses Held | Series 7, Series 63, and SIE |
| States Registered | 11 states including New York, California, Florida, and Texas |
While experience and proper licensing are important, they don’t eliminate the need for vigilance when complaints arise.
Your Rights as an Investor
Securities industry regulations protect investors from misrepresentation and fraud. FINRA Rule 2020 specifically prohibits brokers from using “manipulative, deceptive or other fraudulent device or contrivance” in securities transactions. If Matthew Zagon or any advisor at Cova Capital Partners misrepresented material facts about your investments, you may have legal recourse.
Material facts include:
- Risk levels associated with investments
- Potential for loss of principal
- Liquidity restrictions
- Historical performance data
- Fee structures and commissions
Steps to Protect Your Investments
If you’ve worked with Matthew Zagon at Cova Capital Partners or have concerns about your investments, consider these protective measures:
- Review all investment documentation for discrepancies between what was promised verbally and what appears in writing
- Document any verbal promises or guarantees made about investment performance
- Calculate your actual losses if investments performed differently than represented
- Gather all correspondence including emails, texts, and account statements
- Act quickly as securities claims have time limitations
Why Timely Action Matters
Investment fraud claims are subject to statutes of limitations. Waiting too long to address concerns about potential misrepresentation can limit your legal options. The sooner you evaluate your situation, the better positioned you’ll be to protect your interests and potentially recover losses.
How Haselkorn & Thibaut Can Help
With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has recovered millions for investors nationwide. Our team understands the complexities of securities fraud cases and works on a “No Recovery, No Fee” basis, meaning you pay nothing unless we recover compensation for you.
If you’ve invested with Matthew Zagon at Cova Capital Partners and have concerns about misrepresentation or investment losses, don’t wait to explore your options. A free consultation can help you understand your rights and potential paths forward.
Take Action Today: Contact Haselkorn & Thibaut at 1-888-628-5590 for a free, confidential consultation about your investments with Matthew Zagon or Cova Capital Partners. Our experienced attorneys can review your situation and help you understand your legal options. Remember – there’s no fee unless we recover money for you.
