Gilbert Anthony Kuta of Timonium Maryland a stockbroker formerly registered with Capitol Securities Management Inc. has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings that Kuta executed trades in customer accounts without authorization while he was associated with Capitol Securities Management. Letter of Acceptance Waiver and Consent No. 2017052215403 (July 27, 2021).
According to the AWC, between December of 2017 and June of 2018, Kuta effected fifty or more trades on a discretionary basis in the account of Capitol Securities Management customers. The AWC stated that customers were aware of the stockbroker’s trading but did not provide him with written authorization for discretionary trading. The securities broker dealer did not give permission to Kuta to treat those customers’ accounts as discretionary either. Kuta violated FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 2510(b) for this reason.
This is not the first time that Kuta has been sanctioned by securities regulators. He was issued a consent order by Virginia State Corporation Commission which mandated that he comply with a special supervision order while registered with Ferris Baker Watts LLC. The stockbroker was issued the same type of order from Maryland Division of Securities. Kuta was also censured and suspended by New York Stock Exchange founded on findings of Kuta making unauthorized trades in customers’ investment accounts.
Kuta has been identified in eight customer initiated investment related disputes regarding accusations of his improper actions while employed by Ferris Baker Watts, RBC Capital Markets and Capitol Securities Management. FINRA Public Disclosure confirms that a customer initiated investment related complaint concerning Kuta’s conduct was settled to resolve allegations of unauthorized trading.
Another customer filed an investment related complaint regarding Kuta’s activities where the customer requested $22,000.00 in damages supported by accusations that Kuta misrepresented information in regard to the customer’s investments in a municipal bond through Ferris Baker Watts.
Kuta is the subject of a customer initiated investment related written complaint which was resolved for $60,000.00 in damages based upon allegations that an unsuitable investment strategy had been used for the customer’s Ferris Baker Watts account. The complaint also alleges high commissions on transactions involving unit investment trusts, preferred stocks, and mutual funds.
Another customer filed an investment related complaint involving Kuta’s conduct in which the customer sought $250,000.00 in damages founded on accusations of unsuitable trading and improper discretion by the stockbroker as it pertained to the customer’s investments in closed end funds, mutual funds and unit investment trusts at Ferris Baker Watts.
Kuta is also referenced in a customer initiated investment related written complaint where the customer requested compensatory damages supported by allegations of the customer being placed into inappropriate municipal bonds through RBC Capital Markets given the maturities of those bonds. A different customer initiated investment related FINRA securities arbitration claim regarding Kuta’s conduct was settled for $270,000.00 in damages based on accusations that the customer received unsuitable investment recommendations from Kuta regarding stock trades while he was registered with RBC Capital Markets.
Another customer initiated investment related FINRA securities arbitration claim concerning Kuta’s conduct was resolved for $22,500.00 in damages founded on allegations that the customer’s account was churned and that Kuta’s negligence resulted in damages to the customer. According to the claim, unsuitable trading concerned unit investment trust, mutual fund, stock, and government debt securities held by the customer when Kuta was associated with Capitol Securities Management and RBC Capital Markets. The claim alleges excessive commissions on trading.
Kuta is also the subject of a customer initiated investment related written complaint on December 27, 2016 in which the customer sought $60,000.00 in damages supported by accusations of account mismanagement at Capitol Securities Management.
Kuta’s stockbroker and investment adviser registrations at Capitol Securities Management have been terminated as of March 2, 2020. Since March 3, 2020, Kuta has been both a stockbroker and investment adviser representative of Aegis Capital Corp.
