Did Peter Bakalis Recommend Unsuitable Investments?
Peter Bakalis (CRD #: 4587325), a broker registered with D.H. Hill Securities, is involved in an investor dispute, according to his BrokerCheck record, accessed on January 6, 2022. He is also a registered investment advisor with D.H. Hill Advisors. Details regarding the allegations have been provided below.
Investor Allegations
On October 26, 2021, an investor filed a dispute against Peter Bakalis, alleging that he sold illiquid, unsuitable investments, given the investor’s investment objectives and financial goals.
Financial advisors must consider the factors listed below when providing advice to investors.
- The investor’s current financial state
- The investor’s goals for investing and what the investor hopes to achieve;
- How long it will take for them or their money if they require a return on investment
- The investor’s tolerance risk.
According to FINRA Rule 2111, Financial advisors may be liable for investor unsuitability claims if they fail to take the four factors listed above into account and recommend investments that are not suitable.
The firm denied the dispute, but investors should know that firms can deny disputes without any external review. It is also important for investors to know that they can still pursue FINRA arbitration and recover their losses following a denial.
Client Impersonation Allegations
According to the claims raised by the State of Michigan Department of Insurance and Financial Services on March 6, 2020, Peter Bakalis allegedly identified himself as his customer rather than as an authorized agent on a telephone call to an American Equity representative. Peter Bakalis also allegedly provided his customer’s date of birth and the last four digits of the customer’s social security number to the American Equity representative.
The allegations further state Peter Bakalis specifically requested information necessary to process a surrender for a contract held by his customer. During the telephone call, Peter Bakalis reportedly acknowledged to the American Equity representative that his customer was working with a financial advisor but at no point let the representative know that he was the financial advisor being referenced in the call.
As a result, Peter Bakalis violated Section 1239(1)(h) of the Code, MCL 500.1239(1)(h). He also agreed to the following sanctions:
- Cease and desist order
- A $2,500 fine
Impersonating customers violates FINRA Rule 2010, which “requires associated persons to observe high standards of commercial honor and just and equitable principles of trade.
Employment Termination
On October 3, 2018, Sigma Financial Corporation fired Peter Bakalis following allegations that he forged client signatures on account opening and account transfer paperwork.
Background Information
Peter Bakalis has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
Peter Bakalis is a registered broker in three states. He is also a registered investment advisor in Michigan.
Peter Bakalis has also worked with the following firms:
- SPC (CRD#:110692)
- Sigma Financial Corporation (CRD#:14303)
- Brokers International Financial Services (CRD#:139627)
- Royal Alliance Associates (CRD#:23131)
- Raymond James Financial Services (CRD#:6694)
Kurta Law Can Help
If you have worked with Peter Bakalis and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.