Former HD Vest Investment Services Broker Michael Kamperman Faces Customers Complaints Regarding Suitability Concerns
Posted on Tuesday, September 15th, 2020 at 7:13 pm
Erez Law is currently investigating former HD Vest Investment Services broker Michael Kamperman (CRD# 2002603) regarding allegations of unsuitable investment recommendations. Kamperman was registered with HD Vest Investment Services in Waco, Texas from 2014 to 2017. Previously, Kamperman was registered with Prospera Financial Services, Inc. in Mcgregor, Texas from 2005 to 2014.
In July 2019, FINRA suspended Kamperman for 18 months and sanctioned him to a $20,000 civil and administrative penalty and fine after he, “consented to the sanctions and to the entry of findings that he made unsuitable investment recommendations in the 401(k) and IRA retirement accounts of customers. The findings stated that Kamperman over concentrated the customers’ accounts in high risk, speculative oil and gas – energy sector securities -, and also recommended that one customer purchase and hold a leveraged inverse exchange-traded note, which was only meant to be held for one trading day, in his 401(k) retirement account for nearly 16 months. Kamperman’s investment recommendations were unsuitable for each customers based on the customer’s financial situation and needs, risk tolerance, investment experience, and investment objectives. Additionally, Kamperman had no reasonable basis to believe that his recommendation that one of these customers purchase and hold a short-term leveraged inverse exchange-traded note in his retirement account for an extended time was suitable for any customer. The customers suffered over $407,000 in trading losses as a result of implementing Kamperman’s investment recommendations. The customers filed an arbitration regarding their trading losses. The matter has been resolved through settlement with Kamperman’s member firms.”
Kamperman has been the subject of five customer complaints between 1998 and 2020, one of which was denied, according to his CRD report. Recent complaints are regarding:
August 2020. “Client alleged the trades placed in her account were unsuitable and excessive. Time frame of the alleged activity was 2015 through June 2017.” The customer is seeking $300,000 in damages and the case is currently pending. The complaint took place while Kamperman was registered with HD Vest Investment Services and was regarding equity OTC.
August 2020. “Client alleged the trades placed in her account were unsuitable and excessive. Time frame of the alleged activity at Prospera was 01/2005 to 12/ 2014.” The customer is seeking $300,000 in damages and the case is currently pending. The complaint took place while Kamperman was registered with Prospera Financial Services and was regarding equity OTC.
June 2016. “Claimants alleged that their accounts decreased in value, their investments were not suitable and over-concentrated and that they were not informed of the risk associated with their investments. The claimants also alleged a breach of fiduciary duties and contract.” The customer sought $407,619 in damages and the case was settled for $320,000. The complaint took place while Kamperman was registered with Prospera Financial Services and was regarding common and preferred stocks.
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, HD Vest Investment Services may be liable for investment or other losses suffered by Kamperman’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and 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.