Securities Arbitration Investment Fraud Lawyers » Misappropriation of Funds » Kalos Capital Sued For Breach Of Fiduciary Duty

Arbitration process

Eric Peter Weschke of Setauket New York a stockbroker currently registered with Kalos Capital Inc. is the subject of a customer initiated investment related FINRA securities arbitration claim in which the customer sought $718,000.00 in damages supported by allegations of Weschke overconcentrating the customer’s investments in limited partnership interests and alternative investments during the period that he was associated with Kalos Capital. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-03204 (Dec. 1, 2020). The claim also alleges breach of fiduciary duty and alleges the failure to supervise Weschke’s activities resulting in the sale of unsuitable investments to the customer.

FINRA Public Disclosure reveals that Weschke has been identified in 17 additional customer initiated investment related disputes regarding accusations of his indiscretions while employed by securities broker dealers including Tasin Company and Kalos Capital. On November 19, 2019, a customer initiated investment related FINRA securities arbitration claim concerning Weschke’s conduct was settled for $20,000.00 in damages founded on allegations that investment recommendations were not suitable and that there was a breach of fiduciary duty in regard to the business development corporation investments and real estate securities that were held by the Kalos customer between 2015 and 2017. FINRA Arbitration No. 19-00427.

Weschke is also referenced in a customer initiated investment related FINRA securities arbitration claim which was resolved on April 24, 2020 for $45,000.00 in damages based upon accusations of Kalos Capital’s failure to supervise Weschke’s activities in the customer’s account and the stockbroker’s breach of a fiduciary duty. FINRA Arbitration No. 19-00537. According to the claim, the customer was provided with unsuitable alternative investment recommendations.

Another customer initiated investment related FINRA securities arbitration claim regarding Weschke’s conduct was settled for $70,000.00 in damages supported by allegations of the customer being sold GPB investments through Weschke at Kalos Capital. FINRA Arbitration No. 19-02708 (Sept. 21, 2020). According to the claim, there was a breach of a fiduciary duty and breach of contract as it pertained to the private equity transactions which led the customer to sustain damages.

Weschke is also the subject of a customer initiated investment related FINRA securities arbitration claim where the customer requested $285,000.00 in damages founded on accusations including failure to conduct due diligence and accusation of unsuitable advice by the stockbroker as it pertained to alternative investments, direct participation programs or limited partnership interests. FINRA Arbitration No. 20-00268 (Jan. 23, 2020).

On April 22, 2020, another customer filed an investment related FINRA securities arbitration claim involving Weschke’s activities in which the customer sought unspecified damages based upon allegations that inappropriate oil and gas securities and business development companies were recommended to the customer and that Weschke’s negligence resulted in the customer’s damages. FINRA Arbitration No. 20-00992. The claim also alleges breach of contract and breach of fiduciary duty.

The stockbroker is also referenced in a customer initiated investment related FINRA securities arbitration claim where the customer requested $285,000.00 in damages supported by accusations of unsuitable investment advice and insufficient due diligence concerning the customer’s purchases of DPPs, LPs and alternative investments. FINRA Arbitration No. 20-00268 (Oct. 29, 2020).

Since May 16, 2011, Weschke has been registered with Kalos Capital as a stockbroker and registered with Kalos Management as an investment adviser representative.