The White Law Group announces the filing of a FINRA Arbitration claim against Capital Financial Services, Inc.
The White Law Group filed and submitted the FINRA claim on behalf of a group of unsophisticated retirees residing in Minnesota and North Dakota alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.
The claim further alleges that Capital Financial Services, Inc. unsuitably invested the clients in the following high risk alternative investments, among others:
Priority Income Fund
ICON Leasing Fund Twelve LLC
Hartman Short Term Income Properties
Preferred Apartment Communities
Leaf Equipment Finance Fund 4
Bakken Income Fund
Healthcare Trust of America
US Energy Genesis Drilling Program
Hospitality Investors Trust
American Finance Trust
Lightstone Value Plus REIT
The claim seeks damages between $1,000,000 and $2,000,000.
Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.
It is alleged Capital Financial Services, Inc. failed to perform the necessary due diligence on these investments prior to recommending them to these particular investors.
It is further alleged that the financial advisor that handled the accounts at issue is Steven Knuttila. According to the Financial Industry Regulatory Authority, Knuttila has been the subject of at least two regulatory events, one employment separation and thirty-five customer complaints. Mr. Knuttila was also recently barred from the industry in any capacity as a result of the regulatory events.
According to D. Daxton White, managing partner of The White Law Group, ” It is unfortunate, but we believe that many more investors have suffered devastating losses due to this broker-dealer’s failure to supervise and don’t realize they have recovery options.”
“Brokerage firms are required to supervise their advisors to ensure that they are complying with FINRA rules. If it can be determined that Steven Knuttila violated FINRA rules and the employers failed to adequately supervise him, these firms can be held responsible for any resulting losses in a FINRA arbitration claim.”
FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. It provides investors with an opportunity to attempt to recoup their investment losses without filing such claims in court.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information The White Law Group and the claim filed against Capital Financial Services, Inc., please contact the firm at 1-888-637-5510 or visit https://www.whitesecuritieslaw.com.Tags: Bakken fund, Capital Financial Services, Capital Financial Services class action, Capital Financial Services investigation, Capital Financial Services lawusit, Capital Financial Services losses, Capital Financial Services Minnesota, Capital Financial Services Steven Knuttila, FINRA claim Last modified: December 13, 2018