In a recent article from Financial Advisor they state that the customers of Kestra have filed a complaint against the broker/dealer with the Financial Industry Regulatory Authority’s (FINRA) arbitration service. The article states that the customers allege that one of Kestra’s representatives led them to a volatile and unsuitable exchange-traded product. Additionally, they allege he held the customers in it for too long even though the product wasn’t suitable for long-term investment. The exact dollar figure sought by the customers was not clear. However, a previous settlement with the company over the representative’s alleged recommendations resulted in a $3.3 million settlement.
The article states that the recent complaint, filed in February, concerns customers’ investments in the iPath Series B S&P 500 VIX Short-Term Futures ETNs (a Barclays issued exchange-traded note product whose symbol is VXX.) These notes are highly risky. As Barclays states on its website, “You may lose some or all of your principal.”
According to Financial Advisor, details of the arbitration claim surfaced in a lawsuit filed in federal court by Barclays Capital, which is seeking to avoid being drawn into the dispute. According to the lawsuit, the claimants in the FINRA complaint “allege that Kestra’s registered representative, MARKUS G BYRD, made unsuitable and irrational investment recommendations when, beginning in or around September 2020, he used his discretionary authority to purchase and hold VXX ETNs in the Claimants’ accounts for years even though VXX is virtually guaranteed to lose money when held long term. The Claimants further allege that Kestra’s representative made false and misleading representations concerning the performance and qualities of VXX that were inconsistent with the VXX prospectus issued by Barclays Bank PLC.”
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, MARKUS GRACEN BYRD (MARKUS G BYRD) was registered with Kestra Investment Services LLC of Dallas, Texas, from 02/21/2014 - 04/15/2024. According to the SEC’s website, Byrd has been registered as an investment advisor with CANDOR WEALTH MANAGEMENT, LLC of Dallas, Texas since 2024. MARKUS G BYRD has 34 years of experience in the securities industry and has been listed with 8 firms. Byrd has 7 disclosures on his FINRA CRD report, and all 7 disclosures are “Customer Disputes.” The significance of Byrd’s disclosures is underscored in FINRA NOTICE to MEMBERS 03-49. FINRA conducted a review of the CRD’s of all registered representatives. Only .41% had been the subject of 3 or more customer complaints. In other words, MARKUS G BYRD’s customer complaints rank him in the top one-hundredth percent of all registered representatives for customer complaints.
Of the 7 “Customer Disputes,” according to BrokerCheck, 4 have settled. The settlement amounts were: $3.3 million, $705,000.00. $65,000.00, and $210,000.00.
For the 2 pending disputes filed in 2026 on MARKUS G BYRD’s FINRA CRD report, the customers allege: “Claimant alleges the financial professional recommended unsuitable alternative investments,” and “Claimants allege that between September 2020 and April 2023, the Representative exercised discretionary authority in their account to purchase an exchange traded note. They further allege that the recommendation was not suitable for their investment objectives and that the position was held longer than they believe was appropriate. Claimants also assert that certain statements made regarding the investment's characteristics and performance were inaccurate.”
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