February 20, 2017 Comments (0) Current Investigations

James P. Kolf Barred from Securities Industry

Mark Hotton
(Last Updated On: February 24, 2017)

Wisconsin Regulators revoked the licenses of financial adviser James P. Kolf

In September James P. Kolf was permanently barred from the securities industry by the Financial Industry Regulatory Authority. Wisconsin financial regulators found he had violated three state laws requiring brokers to tell the truth and not misappropriate investments.

Kolf of Sauk City, WI, allegedly defrauded 14 investors out of $905,000, in amounts from $9,000 to $150,000, promising to invest the money in “energy companies” and produce returns of 6 to 8 percent annually, between 2011 and 2016. Kolf’s phony investment venture allegedly used hundreds of thousands of investors’ dollars to pay personal bills.

According to FINRA, Kolf was registered as an investment adviser from 2009 to 2016. He worked at several national companies including New England Securities, NY Life Securities, and MetLife Securities. Kolf was sole proprietor of a fictitious company, SFN Financial Network, according to FINRA.

According to reports, the customers were reimbursed by Kolf’s employer. At least eight of his customers liquidated accounts to move the money to Kolf’s fake investment.

Kolf allegedly  provided his customers with marketing materials for the similarly named FS Investment Co., an approved product offered through New England Securities, which employed Kolf until 2015. He told investigators he used it because the name sounded similar, so “was intended to boost the appearance of legitimacy and credibility to the investors.”, according to the consent order.

In addition, Kolf purportedly paid $47,572 in phony interest payments to convince early investors they were making money and mailed false account statements to investors reflecting re-investments of their interest.

Kolf then used the money to pay the full $280,534 price of his Sauk City home, home improvements of $15,935, credit card payments of $74,298, $4,957 for a car, legal bills of more than $40,000 and a federal tax bill of $152,640.

Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.

Free Consultation

If you suffered losses investing with James P. Kolf, the attorneys at The White Law Group may be able to help you. For a free consultation, please call (888) 637-5510.

The foregoing information, which is all publicly available, is being provided by The White Law Group.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information, please visit our website, www.whitesecuritieslaw.com.