FINRA Suspends Waco, Texas Broker For 18 Months
Two investors have filed Financial Industry Regulatory Authority (FINRA) arbitration complaints against Michael Allen Kamperman, who was most recently a former HD Vest Investment Services registered representative. Both customers are accusing him of making unsuitable and excessive trades on their behalf. Kamperman, who is based out of Texas, was suspended by FINRA last year.
Our Texas stockbroker fraud lawyers are currently investigating customer claims involving Michael Kamperman. Contact Shepherd Smith Edwards and Kantas (SSEK Law Firm) today.
Previous Customer Disputes Alleged Overconcentration In Oil and Gas Investment
According to his BrokerCheck Record, Kamperman has worked 27 years in the industry. Before HD Vest Investment Services, he was a registered representative with Prospera Financial Group. Other firms where he was a broker include UBS Financial Services (UBS), Shearson Lehman Hutton, and Rotan Mosle.
The two pending customer disputes were filed last month. Both claimants are each seeking $300K. One of the unsuitability and excessive trading cases is from Kamperman’s time as an HD Vest Investment Services broker. The other is from when he was a Prospera Financial registered representative.
In July 2019, FINRA suspended Kamperman for 18 months over unsuitability allegations related to customers’ retirement accounts. According to the self-regulatory organization (SRO):
- Kamperman overconcentrated customers’ funds in risky energy investments.
- He allegedly recommended that a customer hold a leveraged inverse exchange-traded note (ETN) in his 401(k) for longer than was beneficial.
- FINRA found that because of Kamperman’s allegedly unsuitable recommendations, customers lost more than $400K.
A FINRA arbitration case from 2016, in which the customer contended that their accounts lost value due to overconcentration, unsuitability, and a failure to apprise the investor of the risks involved, was settled for $320K. The claimant also alleged breach of contract and breach of fiduciary duty.
An earlier customer dispute from 2007, also alleging unsuitability, sought $50K in damages but was denied.
Any investment that does not serve an investor’s best interests, fails to align with their goals or is too risky for their portfolio is an unsuitable investment. A transaction in an investor’s brokerage account may also be deemed unsuitable because there were too many markups involved or a broker may have overconcentrated a portfolio in too much of one investment.
Excessive trading usually involves making too many trades or unauthorized trades that, once again, don’t align with a customer’s investment goals.
Texas Unsuitable Investment Fraud Attorneys
With offices in Dallas and Houston, our Texas broker fraud law firm has spent the last 30 years fighting for investors throughout the state. We have recovered many millions of dollars on our clients’ behalf. Your first consultation with us is a free, no-obligation case assessment.
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