Mark Sam Kolta (CRD #5324620, Miami, Florida)

Mark Sam Kolta (CRD #5324620, Miami, Florida)

September 5, 2024 – Kolta appealed an OHO decision to the NAC. Kolta was barred from association with any FINRA member in all capacities and ordered to pay disgorgement of commissions received in the amount of $297,823, plus prejudgment interest. In light of the bar, a fine and suspension were assessed but not imposed. The sanctions were based on the findings that Kolta made unsuitable recommendations to 16 customers, six of whom were seniors, to invest over $4.8 million in a non-traded real estate investment trust (REIT). The findings stated that Kolta’s recommendations to the customers were unsuitable based on the customers’ financial situations, investment objectives, and risk tolerances, including the excessive concentrations of the REIT in relation to their net worth. The prospectus described the REIT as a speculative, high-risk investment appropriate only for persons who could afford a complete loss of their investment, which the senior customers could not afford. Further, most of the customers had modest incomes and relatively low net worth and therefore needed liquidity when they invested in the REIT. Despite their liquidity needs, Kolta recommended that customers invest a large percentage of their liquid net worth in the REIT, which was not traded and was illiquid. From his sales, Kolta received commissions of $297,823. Subsequently, all customers filed statements of claim against Kolta’s member firm with FINRA, and the firm settled all arbitration claims by paying the customers millions of dollars. The findings also stated that Kolta caused his firm to make and preserve false books and records. Kolta caused materially false and inaccurate information to be recorded on new account forms, updates to customer account forms, and REIT investment documents for each of his customers, which were then retained by his firm. Kolta repeatedly recorded inaccurate income, net worth, and liquid net worth figures for the customers, and also inaccurately recorded decades of investment experience across all types of investment products for the customers and overstated their investment objectives and risk tolerances. The findings also included that Kolta falsified account records and investment documents for the customers on multiple occasions so they would be permitted to buy the REIT. Kolta falsified information about the customers’ net worth, investable or liquid assets, income, assets held away from his firm, investment objectives, and risk tolerance. Without Kolta’s falsifications, his firm would likely have not allowed the customers to make many of the REIT investments. FINRA found that Kolta sent customers emails that made misleading, unwarranted, and promissory statements. Kolta’s emails were not fair and balanced because they failed to address the risks associated with an investment in a REIT. In addition, Kolta failed to obtain approval from a qualified firm principal before sending each of the emails. Kolta’s firm later disciplined him with a letter of caution for his failure to get a principal’s approval before sending the emails. The sanctions are not in effect pending review. (FINRA Case #2018057297102) If you have suffered losses as a result of Mark Sam Kolta's act and/or actions, we would like to hear from you. We are currently investigating claims on behalf of clients who have suffered significant losses in their portfolios that are managed by Mark Sam Kolta. The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at 866-618-0545 or email Matthew Schwartz directly at mschwartz@tslfirm.com.