David Michael Karandos, a previously registered broker and investment advisor, was reportedly barred for refusing to appear for testimony requested in connection with a customer complaint alleging unsuitable recommendations and improper fund withdrawal, according to a Letter of Acceptance, Waiver, and Consent (AWC) disclosed on his Brokercheck Report. The circumstances surrounding Karandos’ sanction are under review by investment loss attorney Alan Rosca and his team.
Individuals who are concerned about investments with ex-broker David Karandos may contact Alan Rosca for a free case evaluation or to provide any helpful information toll free at 888-998-0530, via email at arosca@rscounsel.law, or may use the contact form provided found on our webpage.
David Karandos Was the Subject of Three Regulatory Disputes
Most recently, according to an AWC signed by David Karandos in July of 2022, Karandos consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA. While the AWC does not mention expressly why FINRA commenced its investigation, the AWC’s Background section stated, among others, that in December 2020 Karandos’ former employer, Dinosaur Financial Group, filed an amended Uniform Termination Notice for Securities Industry Registration (Form U5) according to which Karandos was terminated following a customer complaint alleging that the registered representative “made unsuitable recommendations and improperly withdrew funds from customer accounts.”
Without admitting or denying FINRA’s findings, David Karandos agreed to being permanently barred from associating with any FINRA member in all capacities.
Another regulatory dispute disclosure was reportedly filed in October of 2013. According to his Brokercheck, the Michigan Securities regulators alleged Karandos omitted information on his U-4 form related to a compromise with a creditor and his criminal history. The Michigan Securities regulator further alleged Karandos engaged in dishonest or unethical practices in the securities and investment business and was subject of an order issued by a state securities regulator.
Karandos was reportedly the subject of a regulatory dispute filed in October of 2010 by the Indiana Securities regulators. He was reportedly suspended for a duration of 75 days following allegations of unsuitable recommendations and unethical and dishonest practices.
Karandos Was Subject of Multiple Customer Dispute Disclosures
A customer reportedly filed a case with FINRA in August of 2021 against Dinosaur Financial Group, LLC alleging various causes of action, including breach of fiduciary duty, common law fraud, breach of contract, negligence/negligent misrepresentation, negligent hiring, restitution, and negligent supervision. In October 2022, a panel of FINRA arbitrators unanimously ordered Dinosaur Financial Group, LLC to pay $314,564.84 in compensatory damages, $103,807.00 in punitive damages, and costs among others.
Karandos was reportedly the subject of a customer dispute disclosure filed in November of 2020. The customer alleged that Karandos placed the client in unsuitable investments from 2014 to 2018 and improperly withdrew funds from other family accounts from 2016 to 2018. The customer requested $436,000.00 in alleged damages.
Another customer dispute disclosure was reportedly filed in November of 2020. According to the Brokercheck, in a complaint filed in the Marion County Superior Court, Indiana, the customer alleged unsuitable recommendations involving alternative investments between 2014 and 2017.
A customer dispute disclosure reportedly filed in May of 2020 alleged unsuitable investments that included private placements and life settlement viaticals. The dispute was reported as denied.
Karandos was reportedly the subject of a customer dispute filed in December of 2011. The customer alleged breach of fiduciary duty through unsuitable recommendations of volatile, high-risk and illiquid investments. The dispute was reportedly settled for $313,564.64.
A customer dispute disclosure filed in May of 2011 reportedly alleged Karandos breached fiduciary duties owed to the Indiana State Teachers Association by recommending and/or permitting the purchase of an excessive amount of alternative investments in the organization’s investment portfolio. The dispute was reportedly settled for $493,000.
Another customer dispute disclosure was reportedly filed in August of 2003. The customer alleged unsuitable and unauthorized transactions. $32,554 was requested in damages and the dispute was reportedly settled for $27,500.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any Brokercheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog. While the customer complaints mentioned in the Brokercheck report allege misconduct by David Michael Karandos, the Brokercheck report does not appear to indicate whether he was a named party to those customer complaints, or the customers took action solely against the broker-dealer firm(s) that employed him at the time of the alleged conduct. Readers interested to learn more are encouraged to read the Brokercheck report or contact the Rosca Scarlato investor lawyers.
David Michael Karandos Has Been a Registered Broker Since 1989
According to his Brokercheck, most recently David Karandos was reportedly employed as a broker with Dinosaur Financial Group, LLC, located in Indianapolis, Indiana, from 2013 to 2019.
From 2009 to 2012, Karandos served as a broker with Morgan Stanley Smith Barney, located in Indianapolis, Indiana. Karandos was reportedly employed by Morgan Stanley & Co. Incorporated, located in Indianapolis, Indiana, from 2008 to 2009.
From 2003 to 2008, Karandos was reportedly registered as a broker with UBS Financial Services Inc, located in Indianapolis, Indiana. Karandos was reportedly employed by Merrill Lynch, Pierce, Fenner & Smith Incorporated, located in New York, New York, from 1989 to 2003.
Investment Loss Lawyers May Be Able to Assist with Compensation
The Rosca Scarlato LLC law firm represents individuals who lose money as a result of investment-related fraud or misconduct and is currently investigating circumstances surrounding former broker David Karandos’ alleged unsuitable recommendations and improper fund withdrawals.
Rosca Scarlato LLC law firm represents most of its clients on a contingency fee basis, advances the case costs and expenses, and only gets reimbursed out of compensation recovered. Attorney Alan Rosca, an investment loss lawyer and sometimes adjunct professor of securities regulation, has over 14 years of experience representing clients in cases alleging broker misconduct.
Investors who are concerned about investments with former broker and investment advisor David Karandos may contact attorney Alan Rosca for a free no-obligation consultation by calling toll-free 888-998-0530, emailing arosca@rscounsel.law, or by using the contact form provided on our webpage.
