Karen Degro, of Boca Raton, Florida, a stockbroker formerly registered with UBS Financial Services Inc., was ordered to cease and desist and pay a $5,000.00 fine by Florida Office of Financial Regulation because Degro gave investment advice without being registered by the regulator. Case No. 117539-SR (February 20, 2024).
Financial Industry Regulatory Authority (FINRA) Public Disclosure shows that Degro is referenced in seventeen (17) customer initiated investment related disputes concerning Degro’s conduct while associated with securities broker dealers. On May 7, 2020, a customer initiated investment related FINRA securities arbitration claim involving Degro’s conduct was settled for $246,000.00 in damages based upon allegations that Degro made misrepresentations of material fact, overconcentrated the customer’s investments in closed-end funds, and engaged in unsuitable trading during the time that Degro was associated with UBS Financial Services Inc. FINRA Arbitration No. 18-02694.
On March 4, 2020, a customer initiated investment related FINRA securities arbitration claim involving Degro’s conduct was settled for $105,000.00 in damages based upon allegations that Degro’s investment recommendations in Puerto Rico closed-end funds were unsuitable and misrepresented. FINRA Arbitration No. 18-04286.
Degro is also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $30,000.00 in damages based upon allegations that Degro made unsuitable recommendations and misrepresented risks in connection with the sale of municipal bonds and closed-end funds when Degro was associated with UBS Financial Services Inc. The claim also involved allegations of overconcentration in bond and CEFs. FINRA Arbitration No. 19-00787 (May 13, 2020).
On March 23, 2021, a customer initiated investment related FINRA securities arbitration claim involving Degro’s conduct was settled for $90,000.00 in damages based upon allegations that Degro made unsuitable recommendations to invest in and hold municipal bonds and closed-end funds. The claim also alleged that Degro misrepresented investment risks and over-concentrated the customer’s account in Puerto Rico securities. FINRA Arbitration No. 19-01087.
Degro was also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $1,225,000.00 in damages based upon allegations that Degro made unsuitable recommendations and omissions of material fact concerning risks. The customers also alleged overconcentration and misrepresentation. This occurred while Degro was associated with UBS Financial Services Inc. FINRA Arbitration No. 19-01324 (October 19, 2020).
On December 16, 2020, a customer initiated an investment related FINRA securities arbitration claim involving Degro’s conduct. This claim was settled for $65,000.00 in damages. The claim alleged unsuitable recommendations to invest in and hold Puerto Rico closed-end funds and bonds. It was also alleged that the risks were misrepresented, and the customers’ accounts were over-concentrated in those securities. FINRA Arbitration No. 19-02599.
Degro was also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $50,000.00 in damages based upon alleged unsuitable advice, over-concentration, and misrepresentations of material fact in connection with the sale of Puerto Rico securities during the time that Degro was associated with UBS Financial Services Inc. FINRA Arbitration No. 19-01878 (June 15, 2022).
Degro has been associated with Herbert J. Sims Co. Inc. in Boca Raton, Florida since September 22, 2023, as a stockbroker. Additionally, Degro has been registered with Herbert J. Sims Capital Management Inc. in Boca Raton, Florida since October 17, 2023, as an investment advisor representative. Previously, Degro was associated with UBS Financial Services Inc. in Palo Alto, California from April 27, 2016, to October 3, 2023.
