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Investor Alert! The Financial Industry Regulatory Authority (“FINRA”) shows that four or more investors disputed the sales practices of Darren Kubiak (CRD#: 1239086, Alpharetta, Georgia). Namely, clients indicate that the securities broker, who worked for Kalos Capital, Inc. from 2007 to 2019, acted negligently. Supposedly, Kubiak sold clients unsuitable investments and was responsible for their losses. Not only that, but FINRA suspended Kubiak for his poor recommendations. Here’s more:
Clients Dispute Darren Kubiak’s Alternative Investment Recommendations
Apparently, a client of Kalos Capital brought FINRA Arbitration Claim #: 20-00037 in January 2020. Notably, the client suggested that Darren Kubiak’s alternative investment advice was not in line with the client’s investor profile. These allegedly unsuitable investments caused the client to experience losses. For this reason, the client demanded $500,000 from Kubiak or Kalos Capital in this pending matter.
Kubiak Supposedly Negligent, Breached Fiduciary Duty
In September 2019, a client of Kalos Capital filed FINRA Arbitration Claim #: 19-02629. First of all, the client suggested that Darren Kubiak made unsuitable recommendations. Secondly, the securities broker seemingly breached a fiduciary duty, placing his interests ahead of the client’s interest. Thirdly, the client accused Kubiak of negligent actions and Kalos Capital’s negligent supervision. Finally, the client alleged breach of contract with regard to a real estate security transaction. Because of this, the client demanded $500,000 in this ongoing matter.
Darren Kubiak Seemingly Sells Unsuitable GPB Funds To Client
A third Kalos Capital client brought a dispute on May 20, 2019. The matter, which concerned Darren Kubiak, apparently involved unsuitable GPB Funds in which the client invested $170,000 between 2014 and 2018. It is possible that Kubiak failed to consider the client’s risk tolerance or other facts relating to suitability. Because of this, the client seeks $500,000 in compensatory relief. Apparently, this matter is awaiting a resolution.
FINRA Issues Fine, Suspension To Darren Kubiak
Moreover, FINRA suspended Darren Kubiak from October 7, 2019 to January 6, 2020 for committing a violation of FINRA and NASD rules on suitability. Notably, the financial industry watchdog alleged that Kubiak unsuitably recommended Leverage Inverse Exchange Traded Funds (known as “LIETFS”) to Kalos clients.
FINRA says that Darren Kubiak had an insufficient understanding of LIETF risks and features. He did not perform due diligence on the features and risks before offering these products to clients. The findings show that Kubiak wanted clients to hold these investments in a different manner than the guidance for those products indicated. The securities broker also did not know about how the LIETFs could lose value. Evidently, 17 clients held these investments for about two years on average.
Losses From Broker Darren Kubiak?
Have you experienced losses by investing with Darren Kubiak? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities firms and brokers like Kubiak.