Kristian Finfrock (CRD# 5421676) is a former financial advisor and registered representative who worked with Kalos Capital, Inc. in Evansville, Wisconsin. He is the subject of an investigation into potential investment-related misconduct arising from multiple FINRA customer disputes.
Investors who believe they suffered losses because of unsuitable recommendations, excessive concentration, misrepresentations, or other broker misconduct should consult an experienced investment fraud lawyer. An attorney can review the investor’s account records, communications, financial profile, and investment recommendations to determine whether there may be grounds to pursue compensation.
Financial Advisor’s Career History
Kristian Finfrock entered the securities industry in approximately 2007 and was previously registered with MetLife Securities Inc. from October 2007 through March 2012. He later joined Kalos Capital, Inc., where he was registered from March 2012 until July 2022, working out of Evansville, Wisconsin.
During his tenure, Finfrock held Series 6, Series 7, Series 63, and Series 65 licenses. He is no longer registered with FINRA or any securities firm.
Kristian Finfrock Fraud Allegations and Investor Complaints Explained
FINRA records disclose three customer disputes, all of which were resolved through settlements. The disputes involved allegations of unsuitable recommendations, excessive concentration in illiquid investments, breach of fiduciary duty, negligence, and violations of securities-industry rules.
An experienced unsuitable investments lawyer can evaluate whether a broker recommended products that were inconsistent with an investor’s financial circumstances, risk tolerance, investment objectives, liquidity needs, or retirement goals.
Some of the reported products included corporate debt securities, real estate securities, business development companies, oil and gas investments, direct participation programs, limited-partnership interests, and other alternative investments. Investors who suffered losses involving unregistered or illiquid offerings may also benefit from consulting a private placement fraud lawyer.
Disclosure Summary (FINRA)
- Customer Dispute (2021–2022)
- Allegations: Breach of fiduciary duty, breach of contract, negligence, fraudulent inducement to hold investments, and violations of FINRA and state securities laws
- Products Involved: Corporate debt securities, real estate securities, BDCs
- Alleged Damages: $100,000
- FINRA Case No.: 21-03014
- Disposition: Settled on June 14, 2022
- Settlement Amount: $37,000
- Individual Contribution: $18,500
- Customer Complaint (2021)
- Allegations: Unsuitable recommendations concentrating IRA and non-IRA accounts in illiquid, high-commission private placements
- Products Involved: Oil & gas investments, DPPs, LP interests, real estate securities
- Settlement Amount: $35,000
- Disposition Date: August 23, 2021
- Individual Contribution: $0
- Customer Dispute (2020)
- Allegations: Unsuitable alternative investment recommendations
- Alleged Damages: $500,000
- FINRA Case No.: 20-00006
- Disposition: Settled December 30, 2020
- Settlement Amount: $100,000
- Individual Contribution: $0
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
Kristian L. Finfrock’s customer complaints implicate FINRA Rule 2111 (suitability), which requires financial advisors to have a reasonable basis to believe that an investment recommendation is suitable for a customer’s financial situation, risk tolerance, and investment objectives. Concentrating client accounts in illiquid or high-commission investments without proper justification may violate this rule.
The allegations also raise issues under FINRA Rule 2111, which mandates that brokers observe high standards of commercial honor and just and equitable principles of trade. Misrepresentations, negligent supervision, or inducing clients to hold unsuitable investments can constitute violations of this ethical standard.
Additionally, recommendations involving private placements and alternative investments may implicate FINRA Rule 2090, which requires brokers to use reasonable diligence to understand a customer’s financial profile before making investment recommendations. Failure to adequately assess liquidity needs or investment sophistication can expose investors to significant losses.
Investors commonly pursue these claims through FINRA arbitration. A knowledgeable FINRA arbitration lawyer can investigate the alleged misconduct, calculate the investor’s losses, prepare the Statement of Claim, obtain relevant documents, and represent the investor before an arbitration panel.
Contact an Attorney About Losses Involving Kristian Finfrock or Kalos Capital
Losing savings because of dishonest, negligent, or unsuitable investment advice can be devastating, but investors do not have to face the recovery process alone. A skilled stockbroker fraud lawyer can evaluate whether the financial advisor, brokerage firm, or other responsible parties may be liable for the investor’s losses.
The Law Offices of Robert Wayne Pearce, P.A. represents investors in Wisconsin, including those seeking a Milwaukee investment fraud lawyer. Our firm also serves investors throughout nearby Midwestern states, including Minnesota, Illinois, Ohio, and Michigan.
Robert Wayne Pearce and his team have spent decades representing investors who allege that they were misled or harmed by brokerage firms and financial advisors. The firm handles qualifying matters on a contingency-fee basis, meaning clients pay no attorney’s fee unless the firm recovers money for them.
Call (866) 860-7447 or email pearce@rwpearce.com for a free and confidential consultation.
