Joseph Roop, Formerly of Kalos Capital, Named in Customer Dispute Seeking $450,000

Roop allegedly recommended unsuitable investments in alternative securities.

The Sonn Law Group is investigating allegations that Joseph Roop recommended unsuitable investments. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Joseph Roop (CRD#: 2774470) was employed by Kalos Capital from 2009 until 2019. He is currently employed by Dempsey Lord Smith, LLC. 

Roop has seven disclosures listed on his BrokerCheck report.

July 2019 Customer Dispute

• Status: Pending
• Allegations: “Client alleges unsuitable investments in alternative securities (REITS, etc.) during the time period 11/2012 to 05/2017.”
• Damage Amount Requested: $450,000.00

October 2018 Customer Dispute

• Status: Settled
• Allegations: “Clients allege unsuitable investments and sale of securities by a rep that was not properly registered in the State of Alabama. The approximate time period of all investments was January 2011 – July 2014.”
• Damage Amount Requested: $100,000.00
• Settlement Amount: $90,000.00

January 2014 Customer Dispute

• Status: Settled
• Allegations: “Customers allege misrepresentation and omission of material facts and excessive trading from December 2004 to May 2008.”

• Damage Amount Requested: Not Specified

• Settlement Amount: $25,000.00
• Broker Comment: “I have not been given a copy of the allegations, so have no response at this time.”

August 2010 Customer Dispute

• Status: Settled
• Allegations: “Clients opened account in 2002 with Roop and during the course of their five year relationship, Roop was at three firms (Legg Mason, Banc of America Securities, and Wachovia). Client alleges negligent misrepresentation, fraudulent misrepresentation, fraud in the inducement, unsuitability, breach of contract, and breach of fiduciary duty. Roop denies all allegations.”

• Damage Amount Requested: $750,000.00

• Settlement Amount: $135,000.00

• Broker Comment: “During the time I worked with these customers, they maintained accounts that consisted of consolidated individual stocks. The risks of large individual holdings were discussed at regular meetings with customers. Additionally, mutual funds, closed end funds and options were also in their account. We communicated in person and via phone. Meetings were held at their home and occasionally also included their CPA. When the market was most volatile in 2008, weekly meetings occurred with the customer where they were updated on market and accounts. All paperwork was complete and approved by branch manager. Additionally, the branch manager also made calls to the customers to verify their knowledge of the accounts.”

October 2009 Customer Dispute

• Status: Settled

• Allegations: “Client claims unsuitable equity products during the period 01/2005 to 07/2008.”

• Damage Amount Requested: Not Specified

• Settlement Amount: $38,000.00

• Broker Comment: “During the time I worked with [customer] he maintained accounts that consisted of stocks, bonds, closed end funds, mutual funds & options. We had regular reviews in person several times a year we corresponded over phone on a regular basis to discuss his accounts, income, and investment performance while at BAI.”

February 2009 Customer Dispute

• Status: Settled

• Allegations: “Client alleged unsuitable options trades placed in his account.”

• Damage Amount Requested: Not Specified

• Settlement Amount: $85,000.00

• Broker Comment: “Proper forms and disclosures were in place & approved by Time Bershea. No communication or correspondence was requested of Roop at any time regarding complaint. Client requested acct transfer to a different wachovia broker in Birmingham, AL in Oct. 2008 to be closer to his CPA. All transactions were done at the full knowledge, consent and understanding of the client. Phone calls to Wachovia by J.P. Roop requesting information regarding this complaint and its status were never taken or returned.”

December 2008 Customer Dispute

• Status: Settled
• Allegations: “Market crash in 2008 caused large losses to client’s portfolio. Customer claimed she was unaware of risk.”
• Damage Amount Requested: $137,703.00
• Settlement Amount: $56,000.00
• Broker Comment: “From the time of the complaint all of the proper disclosures and forms were in place. Wachovia never requested any information from me even after I asked what they may need from me to help defend the complaint. I was never part of or asked to be involved in any discussions about this case.”

Contact Us Today

The Sonn Law Group is currently investigating allegations that Joseph Roop made unsuitable investment recommendations. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.