Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/investment adviser, Gilbert Anthony Kuta (CRD # 1084075) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into allegations of him using unauthorized discretion in customer accounts.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Kuta.
Registration Background for Gilbert Kuta
Mr. Kuta first became registered in the securities industry in 1982. He is currently registered with Timonium, MD based Aegis Capital Corp. (CRD # 15007). His prior registrations include Capital Securities Management, Inc. (CRD # 14169) from August 2009 to March 2020, and RBC Capital Markets Corporation (CRD # 31194) from March 2009 to September 2009.
FINRA’s Allegations Against Gilbert Kuta
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated July 27, 2021, Mr. Kuta consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “From December 2017 through June 2018, [Mr.] Kuta exercised discretion without written authorization in customer accounts”;
- “Although the customers knew that [Mr.] Kuta was exercising discretion in their accounts, [Mr.] Kuta did not have prior written authorization to do so from any of the customers”;
- “Capitol Securities Management had not approved any of these accounts for discretionary trading”; and
- By virtue of his actions, Mr. Kuta violated NASD Rule 2510(b), regarding discretionary accounts and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Sanctions Gilbert Kuta
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s July 27, 2021 AWC also indicates that Mr. Kuta consented to the following sanction(s):
- A 10-business day suspension from association with any FINRA member in all capacities; and
- A fine in the amount of $10,000.00.
Gilbert Kuta Has A History of Securities Industry Customer Complaints
In addition to the July 27, 2021 AWC showing Gilbert Kuta being suspended from the securities industry by FINRA for using unauthorized discretion in customer accounts, FINRA BrokerCheck for Mr. Kuta reveals he has a history of customer complaints and/or customer initiated arbitrations including but not necessarily limited to the following:
- On January 31, 2014, a customer-initiated arbitration was commenced regarding alleged actions that occurred while Mr. Kuta was associated with RBC Capital Markets, LLC (f/k/a Ferris Baker Watts). The customer alleged unsuitability involving mutual funds and unit investment trusts (UITs). The customer further alleged damages of $91,567.00. On June 12, 2014 the arbitration was settled in the amount of $22,500.00.
- On May 2, 2011, a customer-initiated arbitration was commenced regarding alleged actions that occurred while Mr. Kuta was associated with Ferris Baker Watts, LLC and RBC Capital Markets, LLC. The customer alleged unsuitability with respect to equity securities. The customer further alleged damages of $600,00.00. On June 29, 2012 the complaint was settled in the amount of $270,000.
If you or someone you know has or had a brokerage account with Gilbert Anthony Kuta and have concerns regarding losses in your investments or possible sales practice violations including fraud, churning or unsuitability, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.