ERIC PETER WESCHKE & KALOS CAPITAL Lawsuit

Soreide Law Group has filed a FINRA arbitration on behalf of our client (Claimant) against:
KALOS CAPITAL, INC., and their registered representative, ERIC PETER WESCHKE (Respondents).
The Claimant brings this action to recover investment losses experienced due to the Respondents alleged recommendations of unsuitable alternative investments, business development corporations (BDCs) and real estate investment trusts (REITs) in large concentrations.
The lawsuit alleges that 100% of the account was placed in alternative assets that have suffered devastating losses and are illiquid. At the alleged recommendation of KALOS CAPITAL broker, ERIC PETER WESCHKE, the Claimant invested the majority of funds in FS Energy, Hines REIT, Lightstone REIT, Carter Validus REIT, Business Development Corporation of America, to name a few. The lawsuit claims there were no stocks, bonds, ETFs, mutual funds in the Claimant’s account. Many of these investments have only continued to struggle and fall further in value.
The lawsuit alleges that KALOS CAPITAL broker, ERIC PETER WESCHKE, recommended inappropriate investments for the Claimant that were not unsuitable for the Claimant’s risk tolerance or retirement savings.
The Claimant has suffered losses of at least $200,000. The lawsuit is alleging:  breach of fiduciary duty, violation of FINRA rules, negligence, breach of contract, and negligent supervision.
Eric P Weschke is currently registered both as an investment advisor and broker with KALOS CAPITAL, INC. of SETAUKET, NEW YORK, since May 16, 2011.
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, ERIC PETER WESCHKE has been registered in the securities industry for 23 years and has 21 disclosures on his FINRA CRD report.  Of the 21 disclosures, 19 are “Customer Disputes” dating back to 1998. Of the 19 Customer Disputes, 16 have settled, 2 are pending, and 1 was closed with no action.  The broker has commented denying all allegations.  Some of the allegations listed from the settled claims include; breach of fiduciary duty, suitability, over-concentration in alternative investments, failure to supervise, negligence, breach of contract, and unsuitable recommendations and use of margin.  The settlement amounts ranged from $7,500.00 in 1998, to $152,923.00 in 2020.
The 2 pending Customer Disputes were filed in 2021 and are requesting damages of $150,000.01 and $138,000.00 following allegations in part of “misrepresentations and failure to disclose, unsuitable investments, and unjust enrichment.”
ERIC PETER WESCHKE also has 2 Regulatory Disclosures on his FINRA CRD report, filed in 2000 and 2002.
According to BrokerCheck, Weschke was listed with 8 firms in his 23 years in the securities industry.
If you’ve experienced investment losses due to the actions or recommendations of ERIC PETER WESCHKE and/or KALOS CAPITAL, INC. of SETAUKET, NEW YORK, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your financial losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group works on a contingency fee basis and represents clients nationwide before FINRA.