FINRA Issues Suspension To Steven Netzel

The Financial Industry Regulatory Authority (FINRA) reports important information about securities broker Steven M. Netzel (also known as Steve Netzel) (CRD: 2863170, Chandler, Arizona). Not only has FINRA sanctioned Netzel for unsuitable recommendations, but one or more investors disputed the sales practices of the securities broker. However, Netzel denies the allegations. Read on to learn more about the allegations against Netzel.

FINRA Suspends Netzel For Unsuitable Recommendations

Evidently, on April 14, 2023, FINRA issued Acceptance, Waiver, and Consent No. 2018060897301 sanctioning Steven Netzel for infractions. Specifically, Netzel was suspended for 4 months as a securities broker and fined $10,000. Particularly, FINRA alleged that Netzel made unsuitable recommendations and caused the securities firm to maintain false records or books. However, Netzel accepted sanctions without admitting guilt, agreeing to the findings that he manipulated his firm's records by submitting altered client documents regarding alternative investment purchases.

Notably, FINRA’s findings revealed that Netzel knowingly provided inaccurate information through modified Investor Profiles for at least six clients. The documents showed signs of tampering, such as white-out and overwritten details, including inflated net worth and liquid net worth. Supposedly, by exaggerating clients' net worth, their percentage holdings in alternative investments decreased. For this reason, Netzel secured approval for those purchases.

Also, FINRA’s findings indicated that Netzel made inappropriate recommendations to clients, resulting in their excessive concentration in unsuitable alternative investments. Specifically, FINRA indicated that Netzel’s recommendations went against clients’ net worth, investment objectives, and risk tolerance.

Kalos Capital Inc. Investor Accused Steven Netzel Of Unsuitable Recommendations

Also, a Kalos Capital Inc. client filed FINRA Arbitration: 21-01775 about Steven Netzel. Namely, the client alleged that Netzel provided unsuitable advice based on the client’s situation and investment objectives and charged excessive commissions. Because of this, the client allegedly sustained damages on alternative investments. Therefore, on April 11, 2022, Kalos Capital Inc. settled this matter by paying the client $26,869.99 in damages.

Netzel Discloses Unsuitable Advice Allegations By Kalos Capital Inc. Client

Specifically, a client of Kalos Capital Inc. contested Steven Netzel’s sales practices by filing FINRA Arbitration: 21-00478. Allegedly, Netzel made unsuitable recommendations, breached a fiduciary duty, and breached a contract. It appears that Netzel caused the client to sustain damages on business development company products. Therefore, Kalos Capital Inc. opted to settle the matter on March 31, 2022, by compensating the client in the amount of $91,083.40.

Kalos Capital Inc. Investor Accused Steven Netzel Of Unsuitability

Also, a Kalos Capital Inc. client filed a complaint about Steven Netzel. Namely, the client alleged that Netzel provided unsuitable advice, made misrepresentations, made omissions, and failed to supervise. Because of this, the client allegedly sustained damages on private placements and real estate securities. Therefore, on March 22, 2022, Kalos Capital Inc. settled this matter by paying the client $15,000 in damages.

Netzel Discloses Misrepresentation Allegations By Kalos Capital Inc. Client

Specifically, a client of Kalos Capital Inc. contested Steven Netzel’s sales practices by filing FINRA Arbitration: 20-00610. Allegedly, Netzel made misrepresentations, made unsuitable recommendations, and failed to supervise. It appears that Netzel caused the client to sustain damages on oil and gas securities, real estate securities, and direct investments. Therefore, Kalos Capital Inc. opted to settle the matter on January 18, 2021, by compensating the client in the amount of $48,851.

Kalos Capital Inc. Investor Accused Steven Netzel Of Breach Of Contract

Also, a Kalos Capital Inc. client filed FINRA Arbitration: 20-02543 about Steven Netzel. Namely, the client alleged that Netzel breached a contract, breached a fiduciary duty, and failed to supervise. Because of this, the client allegedly sustained damages on business development company products. Therefore, on August 10, 2020, Kalos Capital Inc. settled this matter by paying the client $75,000 in damages.

Arizona Corporation Commission Securities Division Sanctions Steven Netzel For Unregistered Securities Sales

Evidently, on March 16, 2012, Arizona Corporation Commission Securities Division issued Consent Order No. S-20840a-12-0084 sanctioning Steven Netzel for infractions. Specifically, Netzel was ordered to cease and desist and was fined. Particularly, Arizona Corporation Commission Securities Division alleged that Netzel engaged in unregistered securities transactions.

Netzel Employment Information

• Netzel worked for Kalos Capital Inc. in Chandler, Arizona, as a securities broker from November 25, 2013, to June 19, 2019.
  
• Netzel worked for Madison Avenue Securities LLC in Sun Lakes, Arizona, as a securities broker from June 28, 2019, to August 1, 2019.

Damages Resulting From Kalos Capital Inc. Securities Broker Netzel?

Have you experienced losses from investing with Steven Netzel? If so, get in touch with Soreide Law Group at (888) 760-6552 and speak with a securities attorney about a potential recovery of your losses. Soreide Law Group, who has successfully recovered money for hundreds of investors across the United States, represents clients on a contingency fee basis and advances all costs. Netzel and brokerage firms Netzel worked for deny any and all allegations of sales practice violations.