Mutual Securities Sued By Investors For Negligence
Jacob Ray Kagele of Tucson Arizona a stockbroker formerly employed by Mutual Securities Inc. is the subject of a customer initiated investment related arbitration claim where the customer was awarded $35,631.76 in compensatory damages supported by Kagele being found liable on the customer’s causes of action including that a contract between the customer and the securities broker dealer had been breached and that Kagele was negligent with respect to withdrawals and distributions effected from the customer’s account at Mutual Securities Inc. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-03137 (Aug. 21, 2019).
FINRA Public Disclosure reveals that Kagele has been identified in two additional customer initiated investment related disputes concerning accusations of his wrongdoing during the period that he was employed by Mutual Securities Inc. Kagele is referenced in a customer initiated investment related arbitration claim which was resolved for $1,250,000.00 in damages based upon allegations that misleading and negligent representations were made by the stockbroker in regard to exchange traded funds sold to the customer. FINRA Arbitration No. 16-02136 (June 15, 2017).
According to the claim, the customer’s investment account had been mismanaged and subject to an investment strategy that was not suitable given the customer’s objectives and risk tolerance. The claim also alleges that a fiduciary duty owed to the customer had been breached by Kagele when he was managing partner at Nova Financial LLC and the customer’s investment advisor representative at Mutual Securities.
On December 26, 2017, a customer initiated investment related arbitration claim involving Kagele’s conduct was settled for $57,825.00 in damages founded on accusations of misrepresentation and the violation of a fiduciary duty by Kagele resulting in the Mutual Securities customer’s exchange traded fund losses. The claim alleges that an investment strategy had been implemented in the customer’s account which failed to align with the customer’s investment objectives and risk tolerance. According to the claim, the customer’s account had been mismanaged by Kagele.
Kagele’s registration with Mutual Securities has been terminated as of November 7, 2017.