Philip Goldstein Allegedly Engaged in Fraud and Negligence

Philip Goldstein (CRD #: 1031460), a broker previously registered with Kalos Capital, allegedly violated several securities regulations, according to his BrokerCheck record, accessed on January 6, 2023. Keep reading if you have questions about Philip Goldstein’s conduct as a broker.

Alleged Violations of Pennsylvania State Law

On November 15, 2022, an investor alleged that Phillip Goldstein violated The Pennsylvania Unfair Trade Practices and Consumer Protection Law. The investor furhter alleged negligence and breach of contract. 

The investor also alleged that Philip Goldstein violated the following regulations:

• Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder
• The Pennsylvania Securities Act of 1972

The investor is seeking $288,280 in this pending dispute. 

There is a similar investor dispute dated June 29, 2022. The investor filed allegations concerning surrender fees and other consequential damages, as well as common law fraud, negligence, and breach of contract. The investor is seeking $129,209.82. 

On February 16, 2018, another investor filed a dispute alleging Philip Goldstein violated the above laws as well as committing common law fraud, negligence, and breaching his contract. The client sought $100,000 in damages and received a settlement of $51,000.

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 forbids the use of manipulative and deceptive business practices. Rule 10b-5 specifically prohibits the making of untrue statements and omitting facts so as to mislead investors.

Section 20(a) states that every person controlling a person accused of violations is also liable for their violations. In other words, if a supervisor fails to detect and prevent another broker’s violations of securities regulations, they can also be considered responsible.

Blue Sky Laws

Blue sky laws, like the Pennsylvania Securities Act and Pennsylvania Unfair Trade Practices and Consumer Protection Law, are designed to provide additional protection for investors by prohibiting fraudulent conduct at the state level.

Tax and Civil Liens

From 2013 to 2019, Philip Goldstein was penalized with $638,518.72 in tax liens.

From 2012 to 2013, Philip Goldstein also faced $1,105,164.46 in civil liens.

Bankruptcy

Philip Goldstein discharged a bankruptcy on December 9, 2015.

Background Information

Philip Goldstein has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• Series 15 – Foreign Currency Options Examination
• Series 5 – Interest Rate Options Examination
• Series 7 – General Securities Representative Examination
• Series 24 – General Securities Principal Examination

He has also worked for the following firms:

• Kalos Capital (CRD#:44337)
• WFG Investments (CRD#:22704)
• Berthel, Fisher & Company Financial Services (CRD#:13609)
• Midsouth Capital (CRD#:35039)
• First Montauk Securities (CRD#:13755)
• Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
• Prudential Securities (CRD#:7471)

Kurta Law Can Help

If you worked with Philip Goldstein and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want 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.