Former Cetera Advisor Networks LLC financial advisor Peter Klass (CRD# 2381681) accused of unsuitable investment recommendations and misrepresentations. Klass was registered with Cetera Advisor Networks LLC in Las Vegas, Nevada from April 2017 to April 2018, when he was terminated regarding “Firm notified of FINRA determination that registered representative is subject to a disqualification arising from a Consent Cease and Desist Order Dated March 12, 2018 filed by the Securities Commissioner of Colorado.” Previously, he was registered with Allegis Investment Services, LLC in Idaho Falls, Idaho from 2014 to 2017.
In May 2017, the Colorado Division of Securities revoked Klass’ license in the state of Colorado regarding, “[Third Party] and [Third Party], placed their advisory clients in high risk and complex option trades that their clients did not understand.”
Klass has been the subject of five customer complaints between 2015 and 2017, one of which was withdrawn, according to his CRD report:
- September 2017. “Client alleges that the options strategy implemented in the account was unsuitable and there were misrepresentations regarding the strategy. The strategy had a trade in Aug 2015 which resulted in loss to the client.” The customer is seeking $456,529 in damages and the case is currently pending.
- March 2016. “Client alleges that the advisor on their advisory account did not execute instructions to move out of the market when asked and placed a trade in the established portfolio, which resulted in a loss in Aug 2015.” The customer sought $250,000 in damages and the case was settled for $105,000.
- January 2016. “Client alleges advisor did not follow risk tolerance as agreed. An in Aug. 2015 trade activity caused loss.” The customer sought $73,161.45 in damages and the case was settled for $30,000.
- October 2015. “Client alleges that there was a specific amount of money that was to be reserved from risk and advisors included the amount in the overall strategy.” The customer sought $64,300 in damages and the case was settled for $8,000.
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, Cetera Advisor Networks LLC may be liable for investment or other losses suffered by Klass’ customers.
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