Did You Invest with CHARLES EDWARD KRSEK?

Soreide Law Group, a Florida-based law firm, has filed a FINRA arbitration on behalf of their client (Claimant) against:
CETERA ADVISORS LLC (Respondent).
The Claimant is a widow residing in Florida. The Claimant maintained accounts with the Respondent and its former Financial Advisor, CHARLES EDWARD KRSEK (CHUCK KRSEK).  Krsek is not named in this lawsuit.
According to the lawsuit, the Respondent and their registered representative, CHARLES EDWARD KRSEK, allegedly recommended that the Claimant and her late husband invest in an illiquid alternative investment that became, FS KKR.
Allegedly, the Respondent and CHARLES EDWARD KRSEK, understood that the Claimant did not want to take any unnecessary risks with their retirement savings. However, the lawsuit alleges, the Respondent bought the Claimant this speculative investment emphasizing the steady income return. FS KKR has since undergone a reverse split and then plummeted even further after going public.
The lawsuit alleges the Claimant has suffered damages of approximately $35,000 and is alleging: negligence, breach of fiduciary duty, negligent supervision, breach of contract, and violations of NASD and NYSE Rules.
According to FINRA’s BrokerCheck, available to the public on FINRA's website,  CHARLES EDWARD KRSEK, has three disclosures on his CRD report.  One of those disclosures is a “Regulatory” report. In May of 2012, Krsek was fined $7,500 and suspended for 10 days by FINRA following allegations, in part, of: “CHARLES KRSEK OPENED A TRUST BROKERAGE ACCOUNT FOR AN ELDERLY CUSTOMER AT THE REQUEST OF A FIRM REGISTERED REPRESENTATIVE WHO DID NOT HAVE A SERIES 7 LICENSE AND WAS NOT PERMITTED TO HANDLE SECURITIES ACCOUNTS OTHER THAN VARIABLE ANNUITIES ACCOUNTS. KRSEK SUBMITTED THE APPLICATION FOR APPROVAL AND BECAME THE ASSIGNED REGISTERED REPRESENTATIVE, BUT NEVER MONITORED THE ACCOUNT ACTIVITY. THE REGISTERED REPRESENTATIVE ASKED KRSEK TO OPEN ANOTHER ACCOUNT FOR THE CUSTOMER; THE ACCOUNT APPLICATION INCLUDED THE REPRESENTATIVE AS A JOINT ACCOUNT HOLDER. KRSEK DID NOT PREPARE THE ACCOUNT APPLICATION AND DID NOT RECALL IF HE REVIEWED IT OR ANY DOCUMENTATION PRIOR TO OPENING THE ACCOUNT. KRSEK MISTAKENLY BELIEVED THAT THE CUSTOMER WAS RELATED TO THE REPRESENTATIVE AND FAILED TO NOTICE THAT THE SECTION OF THE APPLICATION THAT QUESTIONED WHETHER ANY RELATIVES OF THE CUSTOMER WORKED AT THE FIRM WAS MARKED "NO" DESPITE THE REPRESENTATIVE BEING A JOINT ACCOUNT HOLDER WITH THE CUSTOMER. THE OPENING OF THE ACCOUNT AND PERMITTING IT TO REMAIN OPEN FOR OVER FOUR YEARS CAUSED A VIOLATION OF FIRM POLICIES AND PROCEDURES AS WELL AS NASD RULE 2330(F)AND FINRA RULE 2150(C) BECAUSE THE REGISTERED REPRESENTATIVE AT THE FIRM WAS NOT PERMITTED TO SHARE DIRECTLY OR INDIRECTLY IN PROFITS OR LOSSES IN A CUSTOMER'S ACCOUNT.”
CHARLES EDWARD KRSEK is not currently registered but was previously registered both as a broker and as an investment advisor. Krsek was in the securities industry for 25 years and listed with 7 firms, the most recent are below:
03/31/2014 - 12/18/2017  CETERA ADVISORS LLC - THE VILLAGES, FL
07/24/2000 - 04/08/2014  METLIFE SECURITIES INC - THE VILLAGES, FL
If you or an elderly loved one have experienced losses due to the actions or recommendations of CETERA ADVISORS LLC  and/or their former broker, CHARLES EDWARD KRSEK of The Villages, Florida, contact the Florida-based Soreide Law Group and speak to a lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group works on a contingency fee basis and represents our clients nationwide before FINRA.