On December 29, 2022, FINRA filed a complaint against Mark Sam Kolta, alleging that, from June 2014 through August 2015, Kolta, while associated with former FINRA member, National Securities Corporation, made unsuitable recommendations to 16 customers to more than $4.8 million in shares of a non-traded real estate investment trust (REIT).
According to the complaint, Kolta’s recommendations caused his customers to lose more than $4.1 million, while he generated more than $290,000 in commissions. Kolta’s recommendations were unsuitable in view of the customers’ investment profiles and the fact that his recommendations over-concentrated their investable assets and liquid net worth in illiquid and high-risk securities. The complaint also alleges that:
- Kolta caused National’s books to be falsified and inaccurate
- Kolta caused customers’ reported net worth, investable/liquid assets, and annual income on the firm’s customer account records and other documents to be falsified and inflated, compared to their actual net worth, investable/liquid assets, and annual income
- Kolta caused customers’ reported investment objectives, risk tolerance, and reported assets held away from the firm, to be inaccurate and falsified
- Kolta sent misleading emails to retail investors about the REIT without the approval of a qualified principal of the firm
Kolta joined Worden Capital Management in 2018 and was employed by the firm until 2021. FINRA expelled Worden Capital in 2022.
FINRA BrokerCheck lists multiple claims against Kolta alleging unsuitable recommendations, over-concentration, misrepresentation, negligence, and breach of fiduciary duty. 25 claims settled between 2019 and 2021 in an aggregate amount of $16.9 million. Currently, two claims are pending:
- In June 2022, a customer alleges Kolta made unsuitable investments in American Realty Capital New York City (ARC NYC), resulting in $1,500,000 in damages
- In February 2022, Kolta allegedly invested customer accounts in unsuitable, illiquid REITs, resulting in $239,000.
According to FINRA, Chase Investment Services Corp discharged Kolta in November 2011 for advising customers of another brokerage firm on options trading without the knowledge or permission of supervisors.
Reif Law Group is investigating claims of investment losses by former customers of Mark Sam Kolta and his former investment advisory firms.
How To Recover Your Losses
If you suffered losses due to unsuitable investments in REITS made by Mark Sam Kolta, contact Reif Law Group immediately. We have an impressive track record of success in arbitration and court proceeding, and we will leverage our skills and experience to help you recover your investment losses. You have powerful legal recourse until federal and state laws, but you must act quickly. Contact us today for a free consultation.