The securities and investment lawyers of Gana Weinstein LLP are investigating customer complaints filed with the Financial Industry Regulatory Authority (FINRA) against broker James Paul Kolf (Kolf). According to FINRA’s BrokerCheck records for Kolf, there are at least 6 disclosures on Kolf’s record including customer complaints and regulatory actions resulting in being barred from FINRA. The customer complaints against Kolf allege securities law violations that claim fraud, unsuitable investments, and breach of fiduciary duty.
Kolf was barred permanently from FINRA on September 2016. FIRNA ruled that he violated Securities Exchange Act of 1934 and FINRA Rules 2020 and 2010 by selling at least $588,000 worth of misrepresented securities to his clients. The securities resulted in being falsified by Kolf and the clients’ funds were used to fund his personal business expenses. He created false statements for his clients to show their interests in these investments that they were not aware were fake.
The most current customer complaint pending against Kolf was from November 2016, alleging Kolf used client funds for personal expenses. This claim occurring during Kolf’s employment at MSI Financial Services, Inc. The customer alleged losses of $29,000.00. A second customer complaint was submitted in December 2016 regarding Kolf’s actions while employed at MSI Financial Services, Inc. The customer alleged that Kolf made inappropriate recommendations to purchase a variable life insurance policy and alleged damages of $54,701.00. This complaint is still pending. The third customer complaint was lodged in December 2016 alleging that Kolf misrepresented the benefits of transferring money from one firm into variable annuities. This allegation occurred in February 2014 when Kolf was with MSI Financial Services, Inc. and is still pending.