Robert William Kasten, a registered broker and investment adviser based in League City, Texas, is the subject of pending customer disputes instituted against him on the allegations of selling away and recommending unsuitable investments to the client, according to Robert Kasten investigation by attorney Alan Rosca.
Broker misconduct attorney Alan Rosca of the Goldman Scarlato & Penny PC law firm, is investigating conduct related to the pending customer disputes against the League City and Houston based broker, Robert Kasten, on the allegations of selling away and unsuitable investment recommendation.
Robert Kasten investigation shows he is currently registered with Securities America, a Financial Industry Regulatory Authority (FINRA) member firm. Previously, Kasten was registered with Fist Allied Securities in League City, Texas. Robert William Kasten was in the employment of First Allied when he allegedly carried out the conducts related to the customer disputes.
According to the Robert Kasten investigation by the Goldman Scarlato & Penny investor rights attorneys, Robert William Kasten is the subject of three pending customer disputes that were initiated currently on allegations of unsuitability of his investment recommendations to the aggrieved investors, his FINRA Brokercheck page reports.
On the same day in March 2020, two different customer disputes were instituted against Robert Kasten by investors. The first client seeks $950,000 in damages on the allegation that the financial adviser improperly solicited an investment in an unapproved outside securities transaction. The client further alleged that broker recommended unsuitable investments, breached their contract and fiduciary duty and also alleged fraud against the broker.
The second client also seeks to recover $400,000 in damages on similar allegations. The client alleged that broker Robert Kasten, breached his fiduciary duty to them by being negligent and recommending unsuitable investments to them. The client further allege that the broker breached their contract and also recommended investments in unapproved outside securities.
In addition, in August 2020, another customer filed a dispute, alleging that while he was with First Allied Securities, Kasten improperly solicited an investment in an unapproved outside securities transaction. The damages are unspecified, and as of the date of this article the dispute is pending.
Generally speaking, the alleged act of the broker recommending or selling unapproved outside securities is called selling away.
Selling away is an unapproved form of transaction on clients and investors accounts. This involves brokers soliciting and selling securities outside the approved list of securities certified by the brokerage firm. The broker could be carrying out such transactions to make extra commissions than required. This action puts the investors in danger and risk of loss as the required due diligence on the security has not been conducted and the suitability of such investments for investors have not been determined by the firm.
Engaging in selling away may also amount to a breach of the fiduciary duty owed by the broker to the investors and clients. The broker typically owes a duty to the client to invest and manage their accounts to meet their investment objectives while avoiding losses on the accounts. In doing this, the broker is typically expected to carefully select the appropriate investment options to recommend to the investors.
This will require the conduct of proper due diligence on the securities to determine their suitability and after the suitability of the investment, examine the investment options in line with the specific particulars and investment needs of the clients.
Investing in any investment without carrying out the duties mentioned above amount may result in the recommendation of unsuitable investments. This, and selling away may amount to a breach of the fiduciary duty owed by the broker to the clients. Where it is established that the broker carried out the alleged act of selling away and recommending unsuitable investments to the clients, the broker may be held liable for the losses incurred by the clients and further liable for further damages as may be determined in the dispute.
All these are general considerations, not necessarily applicable to any one case, and do not constitute legal advice. Investors looking for legal advice for their particular situation should contact a qualified lawyer and discuss about the facts applicable to their specific case.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.
The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to broker Robert Kasten’s pending customer disputes on the allegations of selling away and unsuitable investment recommendation.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to Robert Kasten’s pending customer disputes on the allegations of selling away and unsuitable investment recommendation, may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at email@example.com, or through the contact form on this webpage.