Furgison Law Group investigates claims against Kurt August LaLomia and Stifel, Nicolaus & Company

The securities fraud lawyers at Furgison Law Group are currently investigating claims against Kurt August LaLomia and his brokerage firm, Stifel, Nicolaus & Company. The arbitration specialists at Furgison Law Group are investigating claims involving allegations of breach of fiduciary duty, failure to supervise, misrepresentations, omissions of material facts, conflict of interests, violations of state and federal securities laws, along with other broker misconduct.

FINRA fines and sanctions

FINRA censured and fined Stifel, Nicolaus & Company, Incorporated (CRD #793, St. Louis, Missouri) $200,000 and fined Kurt August LaLomia (CRD #1926472, Baltimore, Maryland) $15,000 and suspended LaLomia from association with any FINRA member in any principal capacity for 31 days. Without admitting or denying the findings, the firm and LaLomia consented to the sanctions and to the entry of findings that for more than seven years, they failed to adequately supervise the written communications of an institutional salesperson registered with the firm.

The findings stated that the salesperson circulated communications to institutional investors about companies that the firm research analysts discussed during morning calls and about which they wrote in their research reports. These communications were not fair and balanced, did not provide a sound basis for evaluating the facts, and contained exaggerated, unwarranted and misleading statements. 

The findings also stated that the firm did not have a supervisory system that was reasonably designed to supervise the distribution, approval and maintenance of communications created by institutional salespeople. In addition, the firm did not establish, maintain and enforce written procedures that were reasonably designed to supervise the distribution, approval, and maintenance of communications created by institutional sales personnel and distributed to institutional customers. The firm failed to enforce certain of its WSPs governing institutional sales material and failed to enforce its written procedures that governed the content of outgoing communications. The firm also failed to enforce its procedures requiring pre-approval of institutional sales material.

Investors have the right to recover their losses

When investments are sold by brokerage firms licensed by FINRA, they are subject to the laws that FINRA enforces. The brokerage firms are responsible for ensuring that their brokers are trading fairly, ethically and in the best interest of their clients. Ideally, they would accomplish this through careful supervision. Unfortunately, too often this supervision has been inadequate to fully protect investors. If you purchased any investments through a representative of a registered brokerage firm and suffered loses through negligence or fraud, it immediately puts the brokerage firm at fault for failing to supervise their broker. FINRA law then dictates that you can hold the firm legally liable to recover your damages. 

Can I recover my losses?

If you lost a substantial portion of your retirement savings or other assets as a result of investments purchased through Kurt August LaLomia or Stifel, Nicolaus & Company, please contact us immediately. Our investment fraud lawyers have recovered millions of dollars from the largest banks, insurance companies and brokerage firms in the world on behalf of investment fraud victims. You may have certain legal rights that require your immediate attention. Time is of the essence in these claims. The sooner you act, the greater your chances of recovering your investment losses. Don't wait. Contact us TODAY for a FREE Consultation and case evaluation. We will tell you if you have a viable claim worth pursuing.