Haselkorn & Thibaut is investigating potential sales practice and supervision issues related to a financial advisor, Gene Esplin, who was previously with Kalos Capital, Inc. (2015-2019), and with Triad Advisors, Inc. (2008-2015) in Pocatello, ID.
The lawyers of Haselkorn & Thibaut, P.A. at investmentfraudlawyers.com have been investigating potential sales practice and supervision issues relating to both Kalos Capital and Triad Advisors concerning the other current and former financial advisors. The experienced team at Haselkorn & Thibaut represents investors and organizations nationwide in pursuing private Financial Industry Regulatory Authority (FINRA) customer disputes/claims and helping clients recover their investment losses.
According to FINRA Brokercheck, Gene Esplin is not currently registered with a FINRA broker-dealer firm (CRD #3133447). It appears that he has a pending customer dispute alleging $1 million in damages relating to unsuitable alternative investments.
Kalos Capital (and Kalos Advisors) is managing approximately $260 million in assets tout the “endowment model” for investors. Whether discretionary or non-discretionary, this model appears to have been used by financial advisors at that firm to recommend some risky, complex, illiquid alternative investment products to investors that can be unsuitable for investors. According to SEC filings, this segment of the Kalos business is approximately 35%.
According to FINRA Brokercheck, Kalos Capital has two regulatory event disclosures.
Triad Advisors discloses on FINRA Brokercheck six regulatory events and four arbitrations.
Regulatory issues appear to involve Unit Investment Trust (UIT) products, supervisory issues, and other issues.
The arbitration disclosures included allegations related to negligence, breach of fiduciary duty, failure to supervise, unsuitability, and other claims. In February 2020, Triad was one of several broker-dealers acquired by Advisor Group (which also owns: FSC Securities, Royal Alliance, Sagepoint Financial and Woodbury Financial). Amidst the first quarter 2020 market volatility, Advisor Group announced that it was one of several firms deciding to halt sales of non-traded real estate investment trust (REIT) securities.
Financial advisors and the firms they work for that supervise the approval and sale of such products (such as Kalos Capital and Triad Advisors) have a responsibility to treat investors fairly, which includes making only suitable investment recommendations after conducting due diligence.
What to do if you know these issues?
Haselkorn & Thibaut, P.A. is investigating these issues, and if you are a former client of Gene Epsis, Kalos Capital, or Triad Advisors with knowledge regarding any of the matters related to any sales practice or supervision issues involved in the handling of investment accounts, please contact our offices.
The sole purpose of this notice is to investigate how Gene Esplin handled investment recommendations and transactions with investors as well as the supervision of the same. If you have any knowledge or experience with these matters, please call 1-888-628-5590. With offices in Florida, New York, Arizona, Texas, and North Carolina, Haselkorn & Thibaut, P.A. is available to assist investors nationwide.
