Allegations of Churning, Unsuitability and Unauthorized Trading Pending Against former Worden Capital Management Broker Christ Baltas
Christ Elias Baltas (CRD#: 2570499) is a previously registered Broker. He entered the securities industry in 1995 and previously worked for Worden Capital Management, LLC; Wilmington Capital Securities, LLC; Kovack Securities, Inc.; Quest Capital Strategies, Inc.; Ladenburg, Thalmann & Co., Inc.; and Ladenburg Capital Management, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in July 2021, a customer dispute was filed against Christ Baltas. The allegation states, “Churning and quantitative unsuitability; unauthorized trading; standards of commercial honor and principles of trade; and, breach of fiduciary contract. Alleged activity dates are December 2016 through late 2020, although only activity from October 2017 forward was margin sellouts.” The customer dispute is pending.
In addition, Christ Baltas has been the subject of one additional pending customer complaint, including the following:
● Aprili 2021–”Between August 2015 and January 2020, client alleges fraudulent misrepresentation and omission of material fact; unsuitable recommendations and trading strategy; failure to act with high standards of commercial honor; and, lack of reasonable supervision.” Damages of $284,108.07, and the customer dispute is pending.
● September 2020–”Without admitting or denying the findings, Baltas consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA in connection with its investigation involving his supervision of a registered representative’s potentially unsuitable trading recommendations.” FINRA barred Christ Baltas from all capacities indefinitely, beginning on September 22, 2020. For a copy of the FINRA sanction, click here.
● July 2017–A tax judgment/lien in the amount of $98,950 was filed against Christ Baltas.
● May 2013–A civil judgment/lien in the amount of $2,301.20 was filed against Christ Baltas.
For a copy of Christ Baltas’s FINRA BrokerCheck, click here.
Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation. Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at firstname.lastname@example.org.