SEC Bars Calton Associates Stockbroker For Fraud
Chris Kubiak of Brookfield Wisconsin a stockbroker formerly employed by Freedom Investors Corp and Calton Associates Inc. has been identified in a Securities and Exchange Commission (SEC) Order Instituting Administrative Proceedings in which he has been barred from being a stockbroker or investment advisor representative and barred from associating with any securities broker dealer or investment advisory founded on findings that Kubiak pleaded guilty to wire fraud. In the Matter of Chris Kubiak Administrative Proceeding File No. 3-19345 (Aug. 14, 2019).
Kubiak pleaded guilty to taking part in a fraudulent scheme violative of 18 U.S.C. Section 1343. United States v. Chris Kubiak Case No. 2:19cr8 (E.D. Wis. May 8, 2019). SEC indicated that Kubiak engaged in the fraudulent activities between 2013 and 2018 and that it was in the public interest that he be barred from the securities industry.
This is not the first time that Kubiak has been sanctioned by a securities regulator. He has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he converted customer funds. Letter of Acceptance Waiver and Consent No. 2018059861801 (Oct. 18, 2018).
According to the AWC, Kubiak took possession of $270,000.00 from four customers who held accounts at Calton Associates and Freedom Investors Corp. The AWC indicated that the customers were led to believe that investments would be made by Kubiak. But the funds had been used by Kubiak for other purposes including Kubiak’s medical bills and for gambling. FINRA determined that Kubiak’s misuse of the customers’ funds constituted the violation of FINRA Rules 2010 and 2150(a).
Kubiak was employed by Freedom Investors Corp between February 17, 1989 and July 17, 2017. He was discharged by Calton Associates on October 1, 2018 founded on accusations of being arrested and charged with committing theft by fraud.