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Carlos Seda, Former Broker, Involved in Two Customer Disputes Totaling $375,000

Carlos Seda (CRD#: 4228841), a former registered representative with Kovack Securities Inc., is currently involved in two pending customer disputes in which former clients are seeking $375,000 million in damages, according to his BrokerCheck record accessed on March 3, 2020.

On November 26, 2018, a client filed a customer complaint against Carlos Seda, alleging that he made misrepresentations and omissions, overconcentrated the customer’s portfolio, breached his contract, engaged in negligence, engaged in fraud, and made unsuitable investment recommendations. The client is requesting $75,000 in damages; the matter is pending.

On December 20, 2019, another client filed a customer complaint against Carlos Seda, alleging that the broker made misrepresentations and omissions, breached his fiduciary duty, breached his contract, engaged in fraud, engaged in negligence, and made unsuitable investment recommendations. Brokers must only recommend investments that are “suitable” for their clients given their age, risk tolerance, and investment objectives. The client alleges that Carlos Seda did not do this, and as a result the client is requesting $300,000 in damages; the dispute is pending.

These two pending customer disputes are not the only disclosures on Carlos Seda’s BrokerCheck record. He has also been involved in four settled customer disputes. He has also been involved in a $1 million case.

On December 19, 2014, Carlos Seda became involved in a customer dispute. The allegations include fraud, breach of fiduciary duty, breach of contract, negligence, misrepresentation, and omission.  The allegations also include unsuitability, overconcentration, and failure to supervise. The investments at issue were Puerto Rico closed-end funds. The client sought $100,000 in damages; the matter was settled for $35,000.

On February 12, 2016, a second client alleged that Carlos Seda recommended unsuitable investments and overconcentrated their portfolio with these investments. The investments were Puerto Rican bonds that the client alleges were speculative and illiquid. The client originally sought $300,000 in damages; the matter ultimately settled for $85,000.

On January 25, 2017, a third client alleged that Carlos Seda recommended high-risk and unsuitable investments. The investments at issue were Puerto Rican bonds. The client originally requested $432,940 in damages; the matter was ultimately settled for $170,000.

On October 10, 2018, a fourth client filed a customer complaint against Carlos Seda, alleging that he overconcentrated their portfolio, made unsuitable investment recommendations, breached his fiduciary duty, violated securities regulations, and breached his contract. The client also alleges that Carlos Seda engaged in negligence, fraud, and breach of good faith and fair dealing regarding Puerto Rico closed-end funds. The client further alleges that Carlos Seda’s firm failed to supervise the broker. The client sought $99,000 in damages and the matter was later settled.

Over his 14 years in the securities industry, Carlos Seda has worked for the following firms:

  • Kovack Securities Inc. (CRD#: 44848)
  • Oriental Financial Services Corp. (CRD#: 29753)
  • OFS Securities, Inc. (CRD#: 39615)
  • Santander Securities (CRD#: 41791)

If Carlos Seda was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta to learn about your options for recovery. Call (877) 238-4175 or email info@fkesq.com for your free case consultation.

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