Oakes & Fosher is presently investigating the possible misconduct of former securities broker Peter Klaass. According to his publicly, available FINRA BrokerCheck report, Peter Klaass has been the subject of multiple customer disputes.
Peter Klaass operated most recently as a Nevada based securities broker. He worked in the securities industry for twenty-four years. During his career, he was registered with nine different securities firms.
His Registrations
- Fidelity Brokerage Services (1993-1994)
- WMA Securities (1994-1995)
- Cuna Brokerage Services (1995-2002)
- Edward Jones (2002-2003)
- Financial Network Investment Corp. (2003-2007)
- LPL Financial (2007-2011)
- Signator Financial Services (2011-2014)
- Allegis Investment Services (2014-2017)
- Cetera Advisor Networks (2017-2018)
The Allegations
- In October 2015, a customer alleged that Peter Klaass was under instructions to allocate a specific amount of money that was meant to be reserved from any risky investments.
- In January 2016, a customer alleged that Peter Klaass did not invest him in securities suitable to their risk tolerance. This case was settled for $30,000 in damages.
- In March 2016, a customer alleged that Peter Klaass failed to follow instructions. This alleged failure resulted in a significant loss to the customer. This case was settled for $105,000 in damages.
- In May 2017, Peter Klaass was sanctioned by the Colorado Division of Securities. The findings in this matter state that he allegedly hired third party advisers to handle clients’ accounts; however, these advisers placed these clients in high risk and complex option trades that said clients did not understand. Due to his alleged actions in this matter, Peter Klaass resigned from Cetera Advisor Networks.
- In September 2017, a customer alleged that Peter Klaass was responsible for them being invested in a highly risky and unsuitable options trading strategy. They also alleged that they received material misrepresentations about said strategy. This case is currently pending. The customer is seeking $456,529 in damages.
Options Trading
Trading in derivatives like options and futures is only suitable for highly sophisticated investors that understand how they work. Options trading involves two parties betting against each other about whether or not a specific security is going to go down. A party in the short position takes on a substantial risk because they are the party that writes the option. Essentially they make an agreement with the party in the long position to either puchase or sell securites, depending on whether it is a call or put option, a predetermined price by the option’s expiration date. They are required to do this despite whatever the option may be worth which can result in very significant losses.
Options can also be highly unsuitable for the party in this long position. This individual pays the other party a premium at the beginning of the transaction. If there is no significant change in the security’s value by the option’s expiration date, then the party in the long position has just lost the premium they paid and does not see any return on their investment. Options are highly unsuitable investment vehicles for any investor with modest investment objectives and lower risk tolerance.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing Peter Klaass, please contact Oakes & Fosher for a free and private consultation. We work on a contingency basis, which means there are no fees charged unless we collect for you.
