Jerome Krause and First Heartland Capital Investment Losses

If you have suffered losses investing with Jerome Krause and First Heartland Capital, The White Law Group may be able to help.

Jerome Krause, a broker with First Heartland Capital Inc. must pay $600,000 in damages to an elderly couple after allegedly stealing money from them, according to the Financial Industry Regulatory Authority Inc.

Joyce and Keith Reuter, both in their 80s, were awarded the payment after claiming broker Jerome Scott Krause allegedly used his position of trust and their vulnerability as older adults to take more than $150,000 from them under the guise of loans, according to a FINRA arbitration document. The hearing was in Milwaukee, Wis.

The Reuters claimed that from 2010 to 2014, Mr. Krause borrowed more than $150,000 from them, liquidating some of their investments to finance his loans without their consent, according to the document. They alleged that his employer, First Heartland, a brokerage firm in St. Louis, Mo., neglected to supervise Mr. Krause.

First Heartland denied the allegations and requested that the claims asserted against the firm be denied in their entirety, the document shows. The broker-dealer discharged Mr. Krause in 2012 after a client alleged he borrowed from her by liquidating a variable annuity, according to FINRA’s BrokerCheck. First Heartland stated on BrokerCheck that it prohibits borrowing from clients.

In addition to the award for damages, the FINRA arbitration panel decided that Mr. Krause is liable for about $18,000 of the Reuters’ attorney fees, according to the FINRA document.

Brokerage firms are required to supervise their advisors to ensure that they are complying with FINRA rules. If it can be determined that Krause violated FINRA rules and his employers failed to adequately supervise him, these firms can be held responsible for any resulting losses in a FINRA arbitration claim. The White Law Group is investigating the liability that Krause’s former employers may have for losses sustained by his clients.

Recovery of Investment Losses

The foregoing information is being provided by The White Law Group. 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 on the firm and it’s representation of investors, visit http://whitesecuritieslaw.com.

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