• July 18, 2022
• Kalos Capital

Andrew Topka (CRD#: 5070107) was a dually registered Broker and Investment Advisor.

Broker’s Background

He entered the securities industry in 2006 and previously worked for Kalos Capital, Inc.; Berthel, Fisher & Company Financial Services, Inc.; and Merrill Lynch, Pierce, Fenner & Smith, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in February 2022, a customer dispute was filed against Andrew Topka. The allegation states, “Sale of unsuitable securities, omission of material fact, breach of fiduciary duty, failure to supervise.” Damages of $297,500 are requested.

In addition, Andrew Topka has been the subject of five other customer complaints, including the following:

• December 2020 — “Breach of fiduciary duty, suitability, overconcentration in alternative investments, failure to supervise.” The customer dispute was settled for $152,923.
• May 2020 — “Failed to conduct reasonable due diligence and recommended unsuitable securities, specifically, GPB Capital Holdings.” The customer dispute was settled for $45,128.
• April 2020 — “Advised my client that GPB was a solid and secure investment that would provide him with steady income. Mr. Topka raved about the future of GPB and its growth potential. We believe strongly that the lack of transparency and SEC investigations are indicative that this investment is all but worthless to current investors.” The customer dispute was settled for $14,500.
• September 2014 — “THE CLIENT ALLEGES THAT 3 OF HER 15 INVESTMENTS HAVE UNDERPERFORMED AND THAT THEY WERE RISKY AND NOT SUITABLE. THE CLIENT IS INQUIRING AS TO THEIR CURRENT STATUS.” The customer dispute was closed with no action.
• October 2013 — “CLIENT WAS DISSATISFIED BECAUSE INVESTMENTS DID NOT PERFORM AS EXPECTED.” The customer dispute was settled for $52,000.

For a copy of Andrew Topka’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

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 age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

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 mwolper@wolperlawfirm.com.