Penny Stock Loss Options with Former Trustmont Financial Group, Inc. Broker Peter Kohli
Posted on Monday, November 9th, 2020 at 11:08 pm
Erez Law is currently investigating former Trustmont Financial Group, Inc. broker Peter Kohli (CRD# 1064334) regarding penny stock investment losses. Kohli was registered with Trustmont Financial Group, Inc. from 2010 to 2015, when he was terminated regarding, “Violation of written supervisory procedures in accepting a loan from a client.”
In March 2018, the Securities and Exchange Commission (SEC) barred Kohli for participating in any offering of a penny stock. The SEC’s complaint alleges “that while Kohli solicited investors to invest in the four mutual funds run by The DMS Funds, he instead used the money for other purposes. To conceal this fraud, Kohli sent investors fake financial statements purporting to show their investments in the mutual funds. The complaint also alleges that Kohli made materially false statements in soliciting the sale of the securities of DMS Advisors’ parent company, and made material misrepresentations and omissions in mutual fund registration statements filed with the Commission.”
In September 2016, the SEC charged Kohli and enforced an emergency asset freeze against the broker for defrauding investors in his failing mutual fund business. The SEC’s complaint, alleges that, “from 2012 through 2015, Peter R. Kohli, of Pottstown, Pennsylvania, fraudulently raised more than $3.2 million from at least 120 investors. The complaint alleges that, among other things, Kohli filed false mutual fund registration statements with the SEC, misappropriated investor funds, and made false and misleading statements when selling securities in a company controlled by Kohli. At the time of his misconduct, Kohli was a registered representative and investment adviser representative associated with a dually-registered broker-dealer and investment adviser. According to the SEC’s complaint, in 2012, Kohli launched a fund (the “Fund”), which ultimately consisted of four emerging market mutual fund series. An advisory firm (the “Firm”) was the Funds’ investment adviser, and a separate Kohli-controlled company (the “Company”) owned the Firm. The complaint alleges that Kohli filed registration statements with the SEC that falsely overstated the Funds’ sophistication and ignored the key risk that the Firm and Kohli would be unable to pay the funds’ expenses, sold the Company warrants, falsely telling investors that the Company had taken steps toward an initial public offering, stole money meant to be invested in the mutual funds, and used it instead to pay fund expenses and, as the funds neared collapse, lied to investors and sold the Company promissory notes with no reasonable expectation that the purchasers could be repaid.” Kohli was sanctioned to pay disgorgement in the amount of $740,908 as well as prejudgment interest on disgorgement, jointly and severally in the amount of $43,971.91.
Kohli has been the subject of eight customer complaints between 2014 and 2020, according to his CRD report. The most recent complaints are regarding:
July 2020. “Failure to supervise, failure to monitor the representative, failure to conduct reasonable due diligence.” The customer is seeking $40,803.16 in damages and the case is currently pending. The complaint was regarding mutual funds and unregistered securities.
July 2020. “Failure to supervise, failure to monitor the representative.” The customer is seeking $373,023 in damages and the case is currently pending.
March 2020. “The complaint alleges the representative sold promissory notes.” The customer is seeking $70,000 in damages and the case is currently pending. The complaint was regarding promissory notes.
March 2020. “The complaint alleges the representative sold promissory notes, fraudulent mutual funds and a variable annuity.” The customer is seeking $130,566.62 in damages and the case is currently pending. The complaint was regarding promissory notes, mutual funds, and variable annuities.
December 2019. “Failure to supervise, failure to monitor the representative.” The customer is seeking $254,807 in damages and the case is currently pending.
November 2018. “Claimant alleges he was recommended to invest in promissory notes 06/14/2012, 08/23/2012, 05/23/2013.” The customer sought $100,001 in damages and the case was settled for $75,000. The complaint was regarding promissory notes.
June 2017. “Representative allegedly sold fraudulent promissory notes to investors in order to support his failing mutual fund business.” The customer sought $750,000 in damages and the case was settled for $375,000. The complaint was regarding promissory notes.
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, Trustmont Financial Group, Inc. may be liable for investment or other losses suffered by Kohli’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.