Erez Law is currently investigating former Kalos Capital, Inc. broker Joseph Roop (CRD# 2774470) regarding unsuitable investment recommendations. He has been registered with Dempsey Lord Smith, LLC in Belmont, North Carolina, from 2019 to 2021. Previously, he was registered with Kalos Capital, Inc. in Belmont, North Carolina, from 2009 to 2019.
In December 2021, the North Carolina Securities Division sanctioned him to pay a $12,500 civil and administrative penalty and fine related to failure to “failure to maintain proper records, making one or more trades without a proper power of attorney, and receiving commission for one or more trades for out-of-state customers.”
Joseph Roop Customer Complaints
He has been the subject of 13 customer complaints between 2008 and 2022, one of which was closed without action, according to his CRD report. The most recent complaints are regarding:
November 2022. “negligence, breach of fiduciary duties, fraudulent misrepresentation, and breach of contract.” The customer is seeking $220,000 in damages, and the case is currently pending. The complaint was related to direct investments, and it took place while he was registered with Dempsey Lord Smith, LLC.
April 2022. “August 2016 to March 2019 – Unsuitable recommendations, Roop’s recommendations, misrepresentations, and misleading statements were in violation of FINRA Rules of Conduct 2110, 2111 and 2120.” The customer sought $200,000 in damages, and the case was settled for $37,500.
August 2021. “Clients filed a complaint with the state of North Carolina alleging Improper Recommendations and Suitability issues.” The case is currently pending. The complaint took place while he was registered with Kalos Capital, Inc.
May 2021. “Unsuitable Investments, Breach of Contract Failure to supervise, breach of fiduciary duty.” The case was settled for $14,999. The complaint was related to oil and gas, real estate securities, and business development companies (BDC) losses, and it took place while he was registered with Kalos Capital, Inc.
December 2020. “Unsuitable and overconcentrated recommedations.” The customer sought $500,000 in damages, and the case was settled for $25,000. The complaint was related to real estate securities, common and preferred stocks, and direct investment losses, and it took place while he was registered with Kalos Capital, Inc.
January 2020. “Mr. Roop failed to conduct reasonable due diligence and recommended an investment strategy comprised of speculative and unsuitable securities pursuant to material misrepresentations and omissions offered by Cottonwood and GPB Capital Holdings, LLC.” The customer sought $65,000 in damages, and the case was settled for $17,500. The complaint was related to real estate securities and direct investment losses, and it took place while he was registered with Kalos Capital, Inc.
October 2018. “Clients allege unsuitable investments and sale of securities by a rep that was not properly registered in the State of Alabama. Approximate time period of all investments was January 2011 – July 2014.” The customer sought $100,000 in damages, and the case was settled for $90,000. The complaint was related to direct investment and alternative investment losses, and it took place while he was registered with Kalos Capital, Inc.
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, Kalos Capital, Inc. may be liable for investment or other losses suffered by Joseph Roop’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.
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