Erez Law is currently investigating former Kestra Investment Services, LLC broker Herman Kahn (CRD# 1866522) regarding Atlas Growth Partners investments that were unsuitable. Kahn has been registered with Kestra Investment Services, LLC in Pittsburgh, Pennsylvania from 2004 to 2020.
According to public records, the investor was unsophisticated with minimal investment experience who was looking for safe investments to generate income throughout retirement. Based on the recommendations of Kahn, the clients invested in Atlas Growth Partners, a start-up company based in Delaware that is an independent developer and producer of natural gas, crude oil and NGLs with operations primarily focused. This oil investment is a private placement that brings about inherent risk for investors, as these investments are typically unregistered securities that lack regulatory oversight.
Over the past few years, oil prices have significantly declined. A supply glut in 2014 and 2015 led to some of the lowest prices the market has seen in recent years. In turn, securities values also dropped, including the values of Linn Energy. The volatile energy sector experienced significant turmoil, and many energy companies were negatively impacted when global crude oil prices fell below $40 per barrel at the end of 2015. This was the lowest level since early 2009, as supply was in excess of global demand. Oil and gas companies experienced a spike in bankruptcies, which have left many investors reeling.
Kahn has been the subject of seven customer complaints between 2013 and 2021, one of which was denied, according to his CRD report. The most recent complaint is regarding:
December 2021. “Claim alleges that the FP and firm failed to disclose the risky nature of 2 investments and that the transactions were not suitable based on investment objectives and risk tolerance.” The customer is seeking $110,000 in damages.
June 2020. “Claimant alleges breach of fiduciary duty and unsuitable investment concentration of Atlas Growth Partners.” The customer is seeking $100,000 in damages and the case is currently pending. The complaint was regarding oil and gas investment losses
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Kestra Investment Services, LLC may be liable for investment or other losses suffered by Kahn’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.