James Paul Kolf of Madison Wisconsin a stockbroker formerly registered with MetLife Securities Inc. has been barred from being a stockbroker or an investment adviser or associating with securities broker dealers or investment advisories according to an Order Instituting Administrative Proceedings, Making Findings and Imposing Remedial Sanctions issued by Securities Exchange Commission (SEC) based upon findings that Kolf engaged in a course of fraudulent activities in reference to his securities business in the State of Wisconsin. In the Matter of James Paul Kolf Administrative Proceeding File No. 3-18274 (Nov. 3, 2017).
SEC referenced that on December 19, 2016, Kolf was subject of a Consent Order issued by the Administrator of the State of Wisconsin, Department of Financial Institutions, Division of Securities which: (1) mandated that Kolf cease and desist from engaging in unregistered securities sales in the State of Wisconsin; and (2) revoked Kolf’s stockbroker or investment registration in Wisconsin permanently. In the Matter of James P. Kolf Case No. S-235446 (EX).
The Order issued by the Administrator found that between May of 2011 and February of 2016, customers had been solicited by Kolf to invest in a business that Kolf created in May of 2011 called SFN Financial Network LLC. The Administrator stated that customers were promised annual returns ranging from six to eight percent by investing in SFN Financial and that their investments would be concentrated in energy companies. A total of $905,077.00 had been liquidated by fourteen customers of Kolf to make the purchases.
According to the Administrator, Kolf failed to utilize his customers’ assets in the way he promised to them. Kolf misappropriated their funds to finance his home purchase, tax payments, and other expenses he incurred relating to his business. The Administrator revealed that Ponzi-like payments had also been made to investors by Kolf. The Administrator found that he engaged in a fraudulent scheme and made omissions and misrepresentations; conduct violative of Wisconsin Uniform Securities Laws Section 551.501. Kolf was barred by SEC because of Wisconsin’s Order.
Kolf has also been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that while he was associated with New England Securities, he misrepresented SFN Financial investments and converted up to $588,000.00 in customer funds; conduct violative of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5; and FINRA Rules 2010, 2020, an 2150. Letter of Acceptance Waiver and Consent No. 2016050940701 (Sept. 14, 2016).
FINRA Public Disclosure reveals that Kolf has been identified in six additional customer initiated investment related disputes pertaining to accusations of his misconduct while employed by securities broker dealers including MetLife Securities Inc. In particular, on December 29, 2016, a customer filed an investment related complaint in regard to Kolf’s conduct in which the customer sought $54,701.00 in damages supported by allegations that the customer was provided inappropriate investment recommendations about a variable life insurance policy. On June 23, 2017, another customer initiated investment related complaint involving Kolf’s activities was settled to resolve accusations of unfounded statements which had been made concerning the transfer of the customer’s funds into annuity products.
Kolf’s association with MetLife Securities Inc. has been terminated as of May 10, 2016.
