Kristian Finfrock (CRD# 5421676) is a former financial advisor and registered representative who worked with Kalos Capital, Inc. in Evansville, Wisconsin, and is under investigation for potential investment-related misconduct arising from multiple FINRA customer disputes.
Financial Advisor’s Career History
Kristian Finfrock entered the securities industry in approximately 2007 and was previously registered with MetLife Securities Inc. from October 2007 through March 2012. He later joined Kalos Capital, Inc., where he was registered from March 2012 until July 2022, working out of Evansville, Wisconsin.
During his tenure, Finfrock held Series 6, Series 7, Series 63, and Series 65 licenses. He is no longer registered with FINRA or any securities firm.
Kristian Finfrock Fraud Allegations and Investor Complaints Explained
FINRA records disclose three customer disputes, all of which were resolved through settlements, involving allegations of unsuitable recommendations, concentration in illiquid investments, and violations of fiduciary and securities law duties.
Disclosure Summary (FINRA)
- Customer Dispute (2021–2022)
- Allegations: Breach of fiduciary duty, breach of contract, negligence, fraudulent inducement to hold investments, and violations of FINRA and state securities laws
- Products Involved: Corporate debt securities, real estate securities, BDCs
- Alleged Damages: $100,000
- FINRA Case No.: 21-03014
- Disposition: Settled on June 14, 2022
- Settlement Amount: $37,000
- Individual Contribution: $18,500
- Customer Complaint (2021)
- Allegations: Unsuitable recommendations concentrating IRA and non-IRA accounts in illiquid, high-commission private placements
- Products Involved: Oil & gas investments, DPPs, LP interests, real estate securities
- Settlement Amount: $35,000
- Disposition Date: August 23, 2021
- Individual Contribution: $0
- Customer Dispute (2020)
- Allegations: Unsuitable alternative investment recommendations
- Alleged Damages: $500,000
- FINRA Case No.: 20-00006
- Disposition: Settled December 30, 2020
- Settlement Amount: $100,000
- Individual Contribution: $0
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
Kristian L. Finfrock’s customer complaints implicate FINRA Rule 2111 (Suitability), which requires financial advisors to have a reasonable basis to believe that an investment recommendation is suitable for a customer’s financial situation, risk tolerance, and investment objectives. Concentrating client accounts in illiquid or high-commission investments without proper justification may violate this rule.
The allegations also raise issues under FINRA Rule 2010, which mandates that brokers observe high standards of commercial honor and just and equitable principles of trade. Misrepresentations, negligent supervision, or inducing clients to hold unsuitable investments can constitute violations of this ethical standard.
Additionally, recommendations involving private placements and alternative investments may implicate FINRA Rule 2090 (Know Your Customer), which requires brokers to use reasonable diligence to understand a customer’s financial profile before making investment recommendations. Failure to adequately assess liquidity needs or investment sophistication can expose investors to significant losses.
Losing your savings to a dishonest broker or advisor can be devastating, but you do not have to face it alone. Robert Wayne Pearce and his team have spent over four decades helping investors who were misled or defrauded by Wall Street firms. The Law Offices of Robert Wayne Pearce, P.A. takes cases nationwide on a contingency fee basis. You pay nothing unless we recover your losses. Call (800) 732-2889 or email pearce@rwpearce.com today for a free and confidential consultation.
