- September 11, 2020
- Crown Capital Securities
Kenneth Barroga (CRD # 2288752) is a Financial Advisor at Crown Capital Securities in Watsonville, CA. Kenneth Barroga has been in the securities industry since 1992 and previously worked at LPL Financial LLC, Chase Investment Services Corp., Wamu Investments, Inc., and Wells Fargo Securities, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Kenneth Barroga has been the subject of five (5) customer complaints during his career, alleging sales practice misconduct:
• June 2020—”The customer alleges lack of suitability, breach of fiduciary duty, misrepresentation and omissions of material facts and lack of due diligence in connection with transactions in alternative investment products.” Alleged damages are $180,000 and the matter remains pending.
• November 2018—”BETWEEN 2012 AND 2015, IT IS ALLEGED THAT MR. BARROGA WAS NEGLIGENT AND MISREPRESENTED THE ILLIQUIDITY OF THE REITS HE RECOMMENDED TO THE CLIENTS AND THAT THE INVESTMENT WAS UNSUITABLE CONSIDERING THE AGE OF THE CLIENTS.” The matter settled for $160,097.59.
• June 2004—”CLIENT ALLEGES THE BONDS PURCHASED IN APRIL 2004 DID NOT YIELD THE RETURN REPRESENTED TO HIM NOR THE DURATION.” The matter settled for $16,000.
• December 2002—”MISREPRESENTATION 1999.” The matter settled for $115,000.
• May 2002—”FAILIRE TO FOLLOW INSTRUCTIONS 2/18/2000.” The claim was denied.
For a copy of Kenneth Barroga’s CRD, click here
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.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
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.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s:
• Other investments
• Financial situation and needs
• Tax status
• Investment objectives
• Time horizon
• Liquidity needs
• Risk tolerance
• Any other information disclosed by the customer
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.