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Darren Kubiak Racks Up 11th Investor Dispute

Sep 20, 2021 Investor Disputes

Darren Kubiak (CRD #: 1239086), a former broker and investment adviser, is involved in his 11th investor dispute, according to his BrokerCheck record, accessed on September 8, 2021. Investors may have worked with Darren Kubiak through Kubiak Financial Services. He was most recently registered as an investment adviser through Adair Financial Private Client Group and as a broker with Kalos Capital.

On July 28, 2021, an investor alleged that Darren Kubiak breached his contract and violated state securities statutes. The investor is seeking $500,000; the dispute is pending.

Settled Investor Disputes

Darren Kubiak settled seven investor disputes in 2020 alone.

  1. On December 1, 2020, an investor alleged that Darren Kubiak had mishandled their account. The dispute settled for $60,422.
  2. On October 27, 2020, an investor alleged that Darren Kubiak was negligent and made misrepresentations. The investor sought $650,000; the dispute settled for $160,093.
  3. On June 23, 2020, an investor alleged that Darren Kubiak recommended unsuitable investments, failed to perform his reasonable due diligence, and made material misrepresentations. The investor sought $250,000; the dispute settled for $47,047.
  4. On April 29, 2020, an investor claimed that Darren Kubiak recommended unsuitable investments and overconcentrated certain investments. The investor also claimed that Darren Kubiak did not conduct adequate due diligence before recommending shares of GPB. (GPB is the subject of Ponzi scheme allegations from the SEC and the former CEO David Gentile is facing 20 years in prison.)

Older Settled Disputes

There are three other disputes from 2020 alleging unsuitable investment recommendations that settled for $228,957.

In 2019, Darren Kubiak settled three investor disputes alleging he recommended unsuitable investments for $527,500.

Regulatory Disclosure

There is also a regulatory disclosure on Darren Kubiak’s record.

On September 6, 2019, Darren Kubiak entered an Acceptance, Waiver, and Consent agreement (AWC) with FINRA in which he consented to the findings that he recommended unsuitable Leveraged Inverse Exchange Traded Funds (LIETFs) to his investors. These investments are meant to be managed on a daily basis and are not designed for investors who plan to hold the investment for a long time. On average, his investors held their LIETFs for nearly two years. This resulted in investor losses of $98,000. FINRA alleged that Darren Kubiak failed to perform his due diligence when he recommended these investment products. Darren Kubiak consented to a fine of $5,000 and a three-month suspension. You can read a copy of the AWC here.

Darren Kubiak Background Information

Darren Kubiak has passed the following exams:

  • Series 65 Uniform Investment Adviser Law Examination
  • Series 63 Uniform Securities Agent State Law Examination
  • Securities Industry Essentials Examination
  • Series 7 General Securities Representative Examination
  • Series 6 Investment Company Products/ Variable Contracts Representative Examination
  • Series 26 Investment Company Products / Variable Contracts Principal Examination

Darren Kubiak has worked for the following firms:

  • Kalos Capital (CRD #: 44337)
  • Questar Capital Corporation (CRD #: 43100)
  • USAllianz Securities (CRD #: 40875)
  • Signator Investors (CRD #: 40875)
  • Washington Square Securities (CRD #: 2882)
  • Hornor Townsend & Kent (CRD #: 4031)
  • First Investors Corporation (CRD #: 305)

Kurta Law Can Help

If you worked with Darren Kubiak and you have concerns about your investments, contact Kurta Law today. Call 877-600-0098 or email info@kurtalawfirm.com.