Our firm is investigating Kalos Capital, Inc. registered representative and investment adviser representative Thomas Michael Rauchegger (CRD# 5156496) of Alpharetta, Georgia for potential investment-related misconduct.
Financial Advisor’s Career History
FINRA BrokerCheck reflects that Rauchegger is not currently registered, and that he was previously registered with Kalos Capital, Inc. from January 2012 through October 2022 (branch listed as Maitland, Florida).
Within the last 10 years of employment history reported on Form U4, BrokerCheck lists:
- Kalos Management, Inc. — Investment Adviser Representative (reported as 02/2013–Present) in Alpharetta, GA
- Kalos Capital, Inc. — Registered Representative (reported as 12/2011–Present) in Alpharetta, GA
- Cramer & Rauchegger, Inc. — Vice President (reported as 05/2006–Present) in Maitland, FL
BrokerCheck also lists outside business activities including Cramer & Rauchegger (life insurance and fixed/fixed indexed annuity sales; investment-related) and non-investment activities (author; soccer coach).
Thomas Michael Rauchegger Fraud Allegations and Investor Complaints Explained
BrokerCheck reports four (4) customer disputes (three final and one pending).
Disclosures at-a-glance (as reported in BrokerCheck):
- FINRA Arb. 20-03598 — Unsuitable recommendations of high-commission/complex/risky alternative and illiquid products (Real Estate Security; BDCs) — Settled 05/06/2022 for $25,000 (alleged $175,000).
- FINRA Arb. 20-03408 — Unsuitable recommendations of alternative/illiquid products (DPP/LP interests; BDCs; 1031; qualified opportunity zones) — Settled 07/07/2021 for $20,000 (alleged $275,000; individual contribution listed as $2,500).
- FINRA Arb. 20-03473 — Unsuitable recommendations of high-commission/complex/risky alternative and illiquid products (Real Estate Security) — Settled 05/06/2022 for $40,000 (alleged $350,000).
- FINRA Arb. 21-02629 — Unsuitable recommendations of high-commission/complex/risky alternative and illiquid products (DPP/LP interests; BDC offerings; qualified opportunity zones) — Pending (filed/received 11/01/2021; damages described as unspecified compensatory damages plus other relief).
Customer Dispute (Settled) — FINRA Arbitration No. 20-03598 (Served 12/06/2020)
The complaint alleged unsuitable investments in “high commission, complex, risky alternative investments” and “multiple illiquid investment products,” including real estate securities and business development companies (BDCs). Alleged damages were $175,000 and the matter settled on 05/06/2022 for $25,000 (individual contribution listed as $0).
Customer Dispute (Settled) — FINRA Arbitration No. 20-03408 (Served 12/06/2020)
This dispute likewise alleged unsuitable recommendations in high-commission, complex, risky alternative and illiquid products, including direct investments (DPP/LP interests) and “business development companies, 1031 offerings, [and] qualified opportunity zones.” Alleged damages were $275,000; the dispute settled on 07/07/2021 for $20,000, with an individual contribution amount listed as $2,500.
Customer Dispute (Settled) — FINRA Arbitration No. 20-03473 (Served 12/06/2020)
This dispute alleged unsuitable investments in high-commission, complex, risky alternative and illiquid products, identified as real estate securities, with alleged damages of $350,000. The dispute settled on 05/06/2022 for $40,000 (individual contribution listed as $0).
Customer Dispute (Pending) — FINRA Arbitration No. 21-02629 (Filed 11/01/2021)
A pending FINRA matter alleges unsuitable recommendations involving “high commission, complex risky alternative investments” and “multiple illiquid investment products,” including direct investments (DPP/LP interests) and references to BDCs and qualified opportunity zones. The filing date is 11/01/2021, and damages are described as unspecified compensatory damages (plus other forms of relief).
To obtain a copy of Thomas Michael Rauchegger’s FINRA BrokerCheck report, visit this link.
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
FINRA Rule 2111 (Suitability) generally requires that a broker have a reasonable basis to believe a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile (including objectives, risk tolerance, liquidity needs, and time horizon). In the complaints described above, the allegations that investors were placed into high-commission, complex, risky alternative investments and illiquid products raise the question of whether the recommendations appropriately matched the customers’ profiles and whether the risks—particularly illiquidity and complexity—were consistent with the investors’ stated needs and goals.
FINRA Rule 2090 (Know Your Customer) requires firms and associated persons to use reasonable diligence to know (and retain) essential facts concerning each customer, including facts needed to effectively service the account and to act in accordance with special handling instructions. Where a dispute alleges unsuitable recommendations into illiquid or complex alternative products, customer-specific facts—such as liquidity needs, investment time horizon, and ability to bear loss—often become central. If those essential facts were not reasonably obtained, updated, or reflected in recommendations, it can materially impact the suitability analysis.
FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade) is a broad ethical rule requiring brokers to observe high standards of commercial honor and just and equitable principles of trade. Allegations involving sales of high-commission and complex/illiquid products frequently implicate whether the broker’s conduct—including disclosure of risks, costs, and liquidity limitations—met those standards, particularly where customers claim they were placed into products that did not align with their needs or that carried risks they did not reasonably understand.
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.
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