Louis Karl Kittlaus of Chicago Illinois a stockbroker formerly registered with Wall Street Strategies Inc. has been suspended on April 10, 2018 from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on accusations that he failed to confirm with FINRA whether he complied with FINRA Arbitration No. 15-02941 (Dec. 8, 2017) wherein he was ordered to pay a customer $76,000.00 in compensatory damages based upon having been found liable on the customer’s claims of (1) negligence (2) breach of fiduciary duty (3) breach of contact (4) violation of securities laws and (5) suitability and (6) fraud relating to the customer’s investments in unregistered private placements.
This is not the first time that Kittlaus has been subject of a FINRA disciplinary action in which he was reprimanded for misconduct. Particularly, on September 15, 2015, Kittlaus was fined $25,000.00 and suspended by FINRA in all capacities for two years supported by accusations that he disseminated misleading, unwarranted, exaggerated and false statements to investors in an attempt to sell alternative investments. Department of Enforcement v. Louis Karl Kittlaus Disciplinary Proceeding No. 2012033508702 (Sept. 15, 2015).
Evidently, Kittlaus distributed a letter making improper, unwarranted and exaggerated representations concerning the future performance of alternative investments. The letter reportedly concerned renewable secured debentures, where Kittlaus failed to detail the rewards and risks pertaining to the debentures investments and the basis behind projections of performance. FINRA’s Extended Hearing Panel stated that Kittlaus distributed a letter riddled with violative content. Consequently, FINRA’s Extended Hearing Panel found Kittlaus to have violated FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rules 2210(d)(1)(A), 2210(d)(1)(B) and 2210(d)(1)(D).
Kittlaus has been identified in four more customer initiated investment related disputes pertaining to allegations of his violative conduct during the period that he was employed by Alliance Affiliated Equities Corporation and Edwin C. Blitz Investments, Inc. Particularly, a customer initiated investment related arbitration claim involving Kittlaus’ activities was resolved for $700,000.00 in damages based upon accusations that Kittlaus effected real estate investment transactions in the customer’s account that failed to conform to the customer’s tolerance for risk, objectives for investing and age. FINRA Arbitration No. 14-03429 (Nov. 17, 2014).
Kittlaus was then subject of a customer initiated investment related arbitration claim where the customer was awarded $309,414.65 in damages supported by Kittlaus being liable on the customer’s claims including: elder abuse; breach of contract; negligent misrepresentation; breach of fiduciary duty; omissions of material information; misleading statements; suitability; and fraud in reference to the customer’s investment private placements. FINRA Arbitration No. 15-00852 (June 12, 2018).
Subsequently, a customer filed an investment related arbitration claim concerning Kittlaus’ conduct in which the customer requested $100,000.00 in damages based upon accusations that the customer was placed in real estate securities that were inappropriate for the customer.
Kittlaus’ registration with Wall Street Strategies Inc. was terminated on May 11, 2016.
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