Cetera Stockbroker Terminated For Unsuitable Trading
Peter Gerhard Klaass of Las Vegas Nevada a stockbroker formerly employed by Cetera Advisor Networks has been terminated from employment on April 18, 2018 based upon allegations of Klaass being statutorily disqualified from being an investment adviser representative in the State of Colorado.
Klaass’ investment advisor representative registration in the State of Colorado was revoked according to a Colorado Division of Securities Consent Cease and Desist Order based upon Klaass’ consent to findings that during the period in which he was a controlling member of Allegis Investment Advisors, LLC, Klaass executed speculative, unsuitable options transactions in the accounts of customers who possessed no understanding of the transactions. Case No. 2017CV31584 (Feb. 27, 2018).
According to the Order, interests in the Russell Net Credit Spread Strategy had been offered and sold by Klaass in a deceptive manner; conduct violative of C.R.S. Section 11-51-501(5)(c). The Order also stated that Klaass was responsible as a controlling person of Allegis for the fraudulent or deceptive sales of Russel Net Credit Spread Strategy. Klaass was additionally ordered to cease and desist from committing fraudulent or deceptive acts.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Klaass is referenced in five additional customer initiated investment related disputes containing accusations of his violative conduct when he was associated with Allegis. In particular, a customer initiated investment related complaint in regard to Klaass’ activities was settled for $8,000.00 in damages supported by allegations of the stockbroker taking customer funds that were supposed to be shielded from market risk and placing them into a speculative options strategy which resulted in unwarranted losses. On February 1, 2016, another customer initiated investment related complaint involving Klaass’ conduct was resolved for $30,000.00 in damages founded on accusations that an unsuitable options trade had been effected in the customer’s account.
On June 27, 2016, another customer filed an investment related complaint concerning Klaass’ activities where the customer sought $400,000.00 in damages based upon allegations of Klaass failing to supervise the options trades placed in the customer’s account. Klaass is also the subject of a customer initiated investment related complaint which was settled for $105,000.00 in damages on February 3, 2017 supported by accusations that the customer’s investment instructions of removing assets from market risk had been disregarded; and a trade executed in the customer’s account led the account to experience losses.
In addition, a customer filed an investment related arbitration claim regarding Klaass’ conduct in which the customer requested $456,259.00 in damages founded on allegations of false or misleading statements being made to the customer concerning an investment strategy; and the customer being placed into bad investments. FINRA Arbitration No. 17-02268 (Sept. 29, 2017).