Securities Arbitration Investment Fraud Lawyers » Investment and Regulatory News » Kalos Capital Settles FINRA Arbitration Claim Before Bankruptcy

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Thomas Michael Rauchegger, of Maitland, FL, a stockbroker registered with Kalos Capital Inc., was the subject of a customer initiated investment related FINRA securities arbitration claim that was settled for $40,000.00 in damages based upon allegations that Rauchegger made unsuitable recommendations of real estate securities during the time that Rauchegger was associated with Kalos Capital Inc. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-03473 (May 6, 2022).

On October 5, 2022, Kalos Capital withdrew its securities registration, and on October 17, 2022, sought protection under Chapter 11 of the United States Bankruptcy Code, and that after exhausting the company’s insurance coverage, it was reported that there remains more than forty-five (45) outstanding customer arbitration claims pending before FINRA. Each of these claims involve, in substantial part, the sale of unsuitable “alternative” investment products.

FINRA Public Disclosure shows that Rauchegger has been referenced in three other customer initiated investment related disputes concerning Rauchegger’s conduct while associated with Kalos Capital Inc. On July 7, 2021, a FINRA securities arbitration claim involving Rauchegger’s conduct was settled for $20,000.00 in damages based upon allegations that Rauchegger made unsuitable recommendations of direct investments business, business development companies, and 1031 offerings. FINRA Arbitration No. 20-03408.

Rauchegger is also referenced in a FINRA securities arbitration claim in which the customer requested compensation based upon allegations that Rauchegger made unsuitable recommendations of alternative investments and business development companies. FINRA Arbitration No. 21-02629 (November 1, 2021).

On May 6, 2022, a FINRA securities arbitration claim involving Rauchegger’s conduct was settled for $25,000.00 in damages based upon allegations that Rauchegger made unsuitable recommendations of real estate securities and business development companies. FINRA Arbitration No. 20-03598.

Rauchegger was associated with Kalos Capital Inc. in Maitland, FL, as a stockbroker from January of 2012 to October of 2022.