Darren M. Kubiak, Kalos Capital – Lawrenceville, GA
Are you concerned about your investments with Darren M. Kubiak in Lawrenceville, GA? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim.
According to a Letter of Acceptance, Waive & Consent, between August 2011 and January 2015, financial advisor Darren M. Kubiak allegedly recommended the purchase of Leveraged and Inverse Exchange Traded Funds (LIETFs) to 17 customers without having a sufficient understanding of the risks and features associated with the LIETFs and thereby failing to have a reasonable basis to make these recommendations.
Kubiak reportedly recommended these customers purchase a total of 19 LIETFs, which the customers then allegedly held for an average of 722 days. These extended holding periods allegedly caused Kubiak’s customers to incur approximately $98,000 in losses. Kubiak purportedly failed to perform reasonable due diligence. According to FINRA, Kubiak allegedly did not understand that LIETFs are generally expected to lose value over time and that losses are compounded because of how the LIETFs’ valuations are reset each day.
FINRA Sanctions Kalos Capital for Supervisory Failures
FINRA also alleged that from August 2011 until April 2015 Kalos reportedly failed to establish, maintain and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to ensure compliance in relation to the sale of LIETFs by its registered representatives.
Additionally, Kalos allegedly failed to reasonably supervise Kubiak, the Firm’s sole registered representative who sold LIETFs to customers, by failing to ensure that Kubiak had a reasonable basis to recommend LIETFs.
According to the AWC, Kalos was censured and fined $30,000 and will pay restitution in the amount of $86,614 plus interest. Kubiak is sanctioned with a $5,000 fine and a three-month suspension from associating with any FINRA member firm in all capacities.
Investigating Potential Claims
The White Law Group is investigating potential lawsuits regarding the liability that Kalos Capital may have for failure to properly supervise Kubiak.
When brokers violate securities laws,such as making unsuitable investment recommendations, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
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 White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
We represent investors in FINRA arbitration claims in all 50 states, including Georgia. Our attorneys have recovered millions of dollars from many brokerage firms in the past.
If you have suffered losses investing with Darren M. Kubiak, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.