Published on:

Broker Complaints: Sigma Financial Corporation (CRD# 14303)

Fitapelli Kurta has recently filed multiple complaints on behalf of investors against Sigma Financial and we are currently interested in hearing from other investors who have lost money investing through  Sigma Financial or one of its brokers.

Sigma Financial Corp. is classified as a corporation and was formed in Michigan in 1983. Sigma Financial’s current main office is located in Ann Arbor, Michigan. Sigma Financial Corp. is registered with both the SEC and FINRA and has offices and registered brokers in all fifty states.

Sigma Financial Corp. has a history of customer complaints and FINRA violations. The following are notable customer complaints or FINRA violations on the part of Sigma Financial or their brokers:

Sigma Financial broker Joral Schmalle has an astounding 22 customer complaints on his BrokerCheck Report, nine of which are currently pending arbitration before FINRA. Notably, on January 28, 2013 Joral Schmalle paid $325,000 in settlement when a customer filed a complaint alleging fraud, misrepresentation, breach of contract, and negligence in connection with TIC investments purchased in 2004 to 2007. Sigma Financial broker, Joral Schmalle paid another $200,000 to a customer in settlement, once again for misrepresenting TIC investments, this time purchased in 2005 to 2008. In August 2012 Joral Schmalle paid $535,000 to a customer in settlement stemming from allegations of fraud, misrepresentation and negligence in connection with more TIC investments purchased in 2004, 2005 and 2007. On October 3, 2011 Joral Schmalle paid a customer $1.2 million dollars as part of a settlement agreement for a complaint stemming from bad TIC investments. Overall, Sigma Financial’s Joral Schmalle’s customers have received over $3 million in settlement agreements stemming from investor complaints for unsuitable TIC investments. 

Former Sigma Financial broker Cary E. Losson is facing three pending arbitrations with FINRA for customer complaints alleging, among other things, misrepresentation of material facts, and fraud all stemming from unsuitable TIC and REIT investments while he was employed at Sigma FInancial. Altogether, Cary E. Losson and Sigma Financial could be facing around $3 million dollars in arbitration awards. This is not the first time Cary E. Losson has received customer complaints, however. In fact, Cary E. Losson received nine customer complaints since 2003. Five of these complaints settled before reaching arbitration with FINRA. In 2013 one complaint was settled for almost $100,000 based on allegations that Cary E. Losson had made unsuitable investment recommendations to a customer while he was a broker at Sigma Financial. In 2012 two more complaints against Cary E. Losson were settled, once against based on allegations of unsuitable investment recommendations while Cary E. Losson was employed as a broker at Sigma Financial. One compliant was settled for over $87,000 while the second complaint was settled for approximately $120,000.  For a full list of customer complaints and settlements, see Cary E. Losson’s BrokerCheck Report.  Cary E. Losson worked for Sigma Financial from 2000 to 2010. He is not currently registered with any registered securities firm.

Mark Johanson worked with Sigma Financial from 2002 to 2010. During his eight years at Sigma Financial, Mark Johanson recommended various TIC investments to investors. Mark Johanson has since received four customer complaints with FINRA for these unsuitable TICs. Three complaints are currently pending arbitration before FINRA and one settled for $103,000.

Sigma Financial broker Tom Velken has 10 customer complaints according to his BrokerCheck Report provided to investors for free by FINRA. Four complaints are currently awaiting arbitration before FINRA and the rest have settled. Notably, on August 22, 2013 an investor received $165,000 in settlement with Tom Velken for damages stemming from unsuitable TIC investments purchased in 2004. On January 26, 2012 another TIC case settled, resulting in almost 190,000 in damages being paid to the investor. And on October 7, 2011 another customer received 252,000 in settlement for allegations of misrepresentation and omission of material facts relating to TIC investments.

Robert Soldat worked as a broker for FINRA from 2002 to 2011. Robert Soldat has racked up a noteworthy 11 customer complaints all stemming from unsuitable investments he recommended to investors while employed at Sigma Financial Corp. Six complaints are currently pending arbitration before a FINRA panel and three complaints were settled before arbitration. For example, on February 17, 2012 one customer received over $120,000 in settlement for allegations of fraud, and breach of contract stemming from unsuitable TIC investments place in 2006 and 2007. Another complaint settled for $512,000 in January 2012, again for unsuitable TIC investments purchased in 2006. Finally, a customer received $169,000 in July 2011 for failing to conduct due diligence and recommended unsuitable TIC investments to him.

Sigma Financial broker, Bob Wallin has five customer complaints on his BrokerCheck Report, four of which are currently pending arbitration. One pending complaint alleges misrepresentation and fraud related to TIC investments purchased in 2007. The customer in that case is seeking $100,000 in damages against Bob Wallin. Another investor complaint alleges similar misconduct on the part of Bob Walin and Sigma Financial, and this customer is seeking $2.5 million in damages. A third pending complaint stemming from bad TIC investments is seeking almost $2 million dollars in damages for misrepresentation and omission of material facts relating to TIC investments made in 2006 and 2007.

Sigma Financial itself has eight FINRA regulatory events and has gone to 11 arbitrations before FINRA. On October 2, 2014 Sigma entered into a letter of Acceptance, Waiver and Consent with FINRA, and was fined $185,000 for failing to establish a system of supervision reasonably designed to achieve compliance with securities laws, regulations and ru
les. 

If you or someone you know has lost money investing in TIC investments or any other type of investment through Sigma Financial or one of their brokers, you may be entitled to full recovery of your losses. Contact the securities fraud attorneys at Fitapelli Kurta today to discuss the merits of your case. Our consultations are always free and all cases are taken on a contingency fee basis. Time is of the essence in filing your claim, so do not wait. Call now for your free consultation