The Financial Industry Regulatory Authority (FINRA) licenses and regulates the stock brokerage industry. It requires stock brokerage firms and their stock brokers to be qualified, registered, and approved by the agency before they may offer and sell securities to the public. FINRA also requires its registrants to immediately report regulatory events, such as suspensions, fines, and customer complaints, against the firm and broker. FINRA maintains a database of investor complaints and disciplinary and employment history for registered representatives and publishes some of this information on its BrokerCheck website, www.brokercheck.finra.org. The FINRA BrokerCheck is purportedly useful for predicting future broker misconduct. Unfortunately, not all customer complaints are accurately or completely reported on the website. We are seeking investors with information about Wall Street Strategies broker Louis K. Kittlaus to determine whether the reported information on the FINRA BrokerCheck website is accurate and complete.
FINRA reports that Mr. Kittlaus has been registered in the securities industry since 1969. Over the years, he has been registered with 19 different brokerage firms: McCormick and Co. Inc., ENI Corporation, First Columbia Corporation, Moseley Hallgarten and Estabrook Inc., Institutional Financial Services Inc., Individuals Financial Services Inc., Kittlaus Co., Fox and Henry Inc., Daly Investment Company, Birkelbach Investment Securities Inc., WFG Securities Corporation, Oak Brook Securities Corp., Cousins Securities Corporation, Strategic Assets Inc., Pavek Investments Inc., Steven L. Falk and Associates Inc., Alliance Affiliated Equities Corporation, Edwin C. Butz Investments Inc., and most recently Wall Street Strategies Inc. During that period, the FINRA BrokerCheck Report indicates that Mr. Kittlaus has been the subject of 2 Regulatory Events, one Criminal Event, and 4 Customer Disputes, all of which were pending as of August 24, 2016.
The Regulatory Events include two FINRA F/K/A NASD enforcement proceedings. In the most recent FINRA enforcement proceeding, it was alleged that Mr. Kittlaus distributed to customers misleading sales brochures about renewable secured debentures that falsely stated the debentures were secured by life insurance policies although the policies were not collateral for the debentures and the security interests the debentures were subordinate to other creditors of the issuer's subsidiaries. It resulted in a suspension in any capacity for 2 years that does not end until June 6, 2018 and a fine of $25,000. The first enforcement action was settled without admitting or denying the allegations that he also had previously circulated false and misleading flyers that contained statements and claims that were exaggerated, unwarranted and/or misleading. In that proceeding, he was censured and fined $7,500.
There are 4 pending customer disputes with allegations of fraud, breach of fiduciary duty, violation of FINRA rules, and failure to supervise for allegedly making unsuitable investment recommendations while he was employed at Edwin C. Butz Investments and Alliance Affiliate Equities Corporation. We believe that Mr. Kittlaus's employers may have not accurately or completely reported all of the Customer Disputes involving him and request that all investors with complaints against Mr. Kittlaus contact our office immediately.
The most important of investors' rights is the right to be informed! We intend to notify FINRA of any and all unreported or inaccurate customer complaints against this firm and/or broker. This blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.