Shepherd, Smith, Edwards & Kantas filed a lawsuit agains Kalos for pushing clients into private placements, most noteably GPB Capital.
The Sonn Law Group is investigating claims that Kalos Capital wrongfully sold private placements. Under FINRA Rules, brokerage firms are liable for their brokers’ misconduct or negligence and investors may be able to recover their investment losses through FINRA arbitration. Contact Sonn Law Group today or call us at 866–827–3202 for a free consultation.
Kalos Capital (CRD#:44337) has been sued on behalf of investors by Shepherd, Smith, Edwards & Kantas Law Firm stemming from allegations that Hunter McFarlin, Kalos Capital’s registered representative since 2013, placed all of the capital in illiquid private investments, including GPB Capital. GPB Capital is currently under investigation by FINRA, the SEC, and the FBI.
In September 2019, Kalos Capital consented to sanctions by FINRA and did not contest findings that the firm failed to establish, maintain, and enforce a supervisory system reasonably designed to ensure compliance with applicable securities laws and regulations and FINRA rules. Additionally, FINRA’s findings also stated that Kalos failed to provide formal training to their registered representatives before permitting them to sell products to retail consumers.
The sanctions imposed included censure, a $30,000 fine, and repayment of $86,614 in restitution to harmed customers.
Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional recommended that you invest in unsuitable products, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.