Kalos Capital Fined and Censured by FINRA for Failure to Adequately Supervise Registered Representatives

Kalos Capital accepted FINRA sanctions following allegations of failure to supervise and train their sole registered representative in order to comply with FINRA Rules and securities law regulations.

The Sonn Law Group is investigating claims that Kalos Capital failed to adequately supervise the sales of non-traditional ETFs, including inverse ETFs or leveraged ETFs, from August 2011 to April 2015. 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.

In September 2019, Kalos Capital (Kalos) 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.

FINRA specifically alleged that Kalos failed to adequately supervise the sales of non-traditional ETFs, including inverse ETFs or leveraged ETFs, from August 2011 to April 2015. Darren Kubiak, a Lawrenceville, Georgia advisor, recommended the purchase of inverse and leveraged ETFs to 17 customers, causing significant losses.

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.