ustomers Sue RBC Capital Markets for Unsuitable Municipal Bonds
Samuel Kluft Koltun (CRD#: 1739664, West Palm Beach, Florida) was a registered representative of RBC Capital Markets, LLC until his August 8, 2018 termination. He disclosed on Financial Industry Regulatory Authority (“FINRA”) BrokerCheck that his activities have given rise to a customer-initiated investment-related arbitration dated November 20, 2017 alleging unsuitability.
RBC Markets Sued For Unsuitable Puerto Rico Bonds
The customer alleged in the arbitration that unsuitable Puerto Rico bonds were purchased and held in the customer’s account between December 2009 and May 2017. The customer demanded at least $262,000.00 in damages as a result of the inappropriate municipal-debt investments. (FINRA Arbitration Case #17-03026).
Koltun has disclosed six other customer disputes on FINRA BrokerCheck in which customers have collectively alleged fraud, misrepresentation, unsuitability and breach of fiduciary duty:
1) On June 12, 2000, a J.B. Hanauer & Co. customer brought a civil lawsuit against the firm and Koltun. The customer alleged violations of Florida Statutes Chapter 517; breach of fiduciary duty; fraud and misrepresentation. Apparently, the fraudulent conduct occurred with respect to the customer’s mutual fund investments. The civil action was settled for $95,000.00 on September 14, 2000. (Civil Action Case #00380CA).
2) On March 3, 2005, a customer of J.B. Hanauer & Co. alleged that purchases of mutual funds were inappropriate for the customer. Apparently, the customer demanded $100,000.00 to resolve the dispute. The complaint has been closed as of March 3, 2005.
3) On October 16, 2015, several customers joined together in the filing of an arbitration. The customers alleged that from 2008 to 2015, their accounts were over-concentrated in risky bonds. Apparently, the overconcentration of the Puerto Rican bonds exposed the customers to excessive risk. The customers also alleged that there were inadequate disclosures made to them regarding the risks. On March 28, 2017, RBC Capital Markets, LLC paid the customers $212,500.00 in damages to resolve the allegations. (FINRA Arbitration Case #15-02662).
4) Another arbitration was filed by RBC Capital Markets customers on October 16, 2015 regarding misconduct during the 2010 – 2015 time period. Those customers also alleged over-concentration, and the omissions of information about the risks of the municipal debt investments. The customers’ arbitration was resolved on October 10, 2016 for a total of $399,000.00 in damages.
5) On April 18, 2016, an RBC Capital Markets LLC customer filed an arbitration alleging that the RBC broker poorly advised the customer regarding municipal-debt investments. The firm agreed to pay the customer $85,000.00 to settle the arbitration on February 28, 2017.
Koltun has also disclosed on FINRA BrokerCheck that NASD sanctioned him for engaging in unsuitable sales. He consented to being fined, disgorged and suspended by NASD pursuant to a Letter of Acceptance, Waiver and Consent (“AWC”) #C9B040060 that was executed on June 29, 2004. Koltun was found liable for making unsuitable recommendations to customers regarding mutual funds.
The AWC stated Koltun recommended a number of Class B mutual fund trades for three J.B. Hanauer & Co. customers. The customers, according to the NASD, should have been recommended Class A shares instead. If the customers were placed in Class A shares, they apparently would have been able to receive a discount to invest and would have avoided contingent deferred sales charges and higher 12b-1 fees. NASD found that Koltun violated NASD Conduct Rules 2110, 2310 and IM-2310-2.
Koltun began working for B.B. Graham & Company, Inc. (Jupiter, Florida) on August 1, 2018.
If you have experienced losses on Puerto Rican bonds or other municipal-debt investments recommended by Samuel Kluft Koltun, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients nationwide and only charges a fee upon recovery of investment losses.