Former Kalos Capital, Inc. broker Steve Netzel (CRD# 2863170) is accused of unsuitable investment recommendations. He was registered with Madison Avenue Securities, LLC in Sun Lakes, Arizona from June to August 2019. Previously, he was registered with Kalos Capital, Inc. in Chandler, Arizona from 2013 to 2019.
In March 2012, the Arizona Corporation Commission Securities Division sanctioned him to a $10,000 civil and administrative penalty and fine after it was found that he offered or sold securities that were neither registered nor exempt from registration. He violated a.R.S. 44-1842 by offering or selling securities while neither registered as a dealer or salesman nor exempt from registration.
Steve Netzel Customer Complaints
He has been the subject of eight customer complaints between 2019 and 2022, according to his CRD report:
February 2022. “Unsuitable recommendations, material misrepresentations and omissions of material facts, failure to supervise.” The customer is seeking $155,000 in damages. The complaint took place while he was registered with Kalos Capital, Inc. and was regarding real estate securities and direct investments.
September 2021. “Unsuitable high risk, illiquid, high commissions alternative investments due to the claimants situation, needs, investment objectives and risk tolerance.” The customer is seeking $730,000 in damages. The complaint took place while he was registered with Kalos Capital, Inc. and was regarding alternative investments.
April 2021. “Unsuitable recommendations, overconcentration in illiquid securities, breach of contract, breach of fiduciary duty.” The customer is seeking $425,000 in damages. The complaint took place while he was registered with Kalos Capital, Inc. and was regarding direct investments, real estate securities, and BDCs.
October 2020. “Claiming breach of contract, breach of fiduciary duty, and failure to supervise.” The case was settled for $75,000. The complaint took place while he was registered with Kalos Capital, Inc. and was regarding real estate securities and business development companies (BDCs).
September 2020. “Unsuitable investment recommendations, overconcentration, misrepresentation, and breach of fiduciary duty.” The customer sought $250,000 into damages and the case was settled for $65,329. The complaint was regarding oil and gas securities, real estate securities, and direct investments and took place while he was registered with Kalos Capital, Inc.
August 2020. “Unsuitable investments, failure to supervise, and misrepresentation.” The case was settled for $111,391. The complaint was regarding oil and gas securities, direct investments, and private equity and alternative investments and took place while he was registered with Kalos Capital, Inc.
April 2020. “Misrepresentation of Material Fact, Suitability, Failure to Supervise.” The customer sought $500,000 in damages and the case was settled for $49,851. The complaint was regarding direct investments, oil and gas securities, and real estate securities and took place while he was registered with Kalos Capital, Inc.
October 2019. “Unsuitable recommendations.” The customer sought $300,000 in damages and the case was settled for $177,500. The complaint was regarding oil and gas securities, real estate securities, and private equity and alternative investments and 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 Steve Netzel’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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