Ex-Kalos Capital Broker Accused Of Misrepresenting UDF IV

Latest FINRA Arbitration Claim Allege REIT Losses

A number of investors recently filed a customer complaint against former Kalos Capital broker, Curtis Leroy Whipple, who was with the firm out of Plymouth, Michigan until this year. He faces allegations of unsuitability, misrepresentations, and lack of due diligence related to the claimants’ United Development Funding IV (UDF IV) losses.

UDF IV is a real estate investment trust (REIT) that mostly invests in secured loans for acquiring and developing land into single-family home lots, as well as to construct homes and model homes. UDF IV and the other UDF non-traded REITs have been accused in recent years of being part of a $1B Ponzi scam. United Development Funding is based out of Dallas, Texas.

Our stockbroker fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are speaking to investors who suffered losses while working with former Kalos Capital broker, Curtis Whipple. We also have been investigating complaints from investors all over the United States related to their UDF stock investment losses.

Other Customers Have Accused Whipple of Unsuitability Before

According to his BrokerCheck record, Whipple worked 32 years in the industry. He was a Kalos Capital broker from 2012 to 2020. Before that, he had been a broker at 6 other firms including Investacorp, Sigma Financial, Linsco/Private Ledger, Mariner Financial, Guardian Investor Services, and Amev Investors.

A previous customer dispute naming Curtis Whipple from 2017 was settled for $37,500. Once again, multiple clients alleged unsuitability. An earlier FINRA arbitration claim from 2005 seeking $735K in damages was denied.

In 2000, the National Association of Securities Dealers (NASD) ordered Whipple to pay a $10K fine and suspended him for 10 days over alleged outside business activities. In 1998, Linsco/Private Ledger fired him for not informing the firm of such activities.

SSEK Law Firm Is Pursuing a Number of Broker Fraud Claims Against Kalos Capital

Our securities attorneys have already filed numerous FINRA arbitration claims against Kalos Capital, with many of the cases related to GPB Capital Holdings and its private placements. GPB is accused of operating a $1.5B Ponzi scam and a number of Kalos brokers sold these investments to the firm’s customers.

UDF IV Stock Losses

Unfortunately, a number of broker-dealers also sold UDF REITs to investors. The firms most widely associated with the sale of these investments include IMS Securities, Centaurus Financial, VSR Financial Services, and Berthel Fischer, although there are others.

Both GPB Capital Holdings and UDF were raided by the Federal Bureau of Investigation in 2016 and 2019, respectively, over the separate and unrelated fraud allegations.

Investment Fraud Lawyers

For 30 years, SSEK Law Firm has been fighting for investors to obtain the financial recovery they are owed. We have represented thousands of clients and recovered many millions of dollars on their behalf, including against the largest firms on Wall Street.

Unfortunately, investors lose money all of the time due to unsuitable recommendations or because a broker failed to do the proper due diligence to make sure an investment was not fraudulent. Our securities fraud law firm represents retail investors, institutional investors, and high net worth individual investors.

If you worked with Curtis Whipple or any other Kalos broker and suffered losses due to UDF IV or another UDF REIT, contact SSEK Law Firm today. Your first consultation with us is free.