Kalos Capital, Inc.

Permitted to Resign

Firm was made aware by a third party that rep sent out correspondence to at least one person without submitting it for review/approval to compliance department in violation of firm policy as well as FINRA 2210

On or about May 19th 2017, a letter went out to a prospective client accidently, by a member of the staff. We were in the process of proofreading several different letters at the same time having to do with fixed insurance and one letter for broker dealer prospects. Unfortunately, a staff member sent out the wrong letter to a prospect. This letter should not have gone out, as it had not yet been sent through the compliance process (RegEd). The recipient of the letter called her broker, who in turn he called his broker dealer, who then contacted Kalos and FINRA. To the best of my knowledge this was the only letter of its kind that was sent. This was the first time it has happened. During my almost 5 year tenure at Kalos Financial, I was never fined, sanctioned, written up or disciplined in any way shape of form. Again, this was an unfortunate mistake that cost me my relationship with a broker/dealer I respect. I was given the opportunity to voluntarily resign on May 26, 2017. I will be doing everything in my power to prevent it from every happening again and will be adhering to all firm policy on outgoing correspondence. Lee Siler

MISCONDUCT

$95,000.00

$25,000.00

CASE SETTLED ON APRIL 3, 2007.

NASD

RESPONDENT FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO AN NASD REQUESTS TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

Other

Suspension

COSTS

NASD REGISTRATION SUSPENDED AUGUST 10, 2005 FOR FAILING TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT IN ARBITRATION CASE #00-05723 OR TO SATISFACTORILY RESPOND TO AN NASD REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

SUSPENSION WAS LIFTED ON MARCH 30TH 2007. AWARD AND SETTLEMENT AGREEMENT HAS BEEN SATISFIED

FRAUD AND DECEIT, NEGLIGENCE, BREACH OF FIDUCIARY DUTY, AND BREACH OF CONTRACT

$225,000.00

$50,000.00

I AM THE CONTROL PERSON FOR STOCKDR.COM , AND THEREFORE THE CLIENT NAMED ME, ALTHOUG SHE HAD MOST OF HER DEALINGS WITH OTHER REPS IN THE OFFICE.

BREACH OF CONTRACT, BREACH OF FIDUCARY DUTY,COMMON LAW FRAUD, NEGLIGENCE. NEGLIGENT FAILURE TO SUPERVISE.

$180,000.00

$25,000.00

NAMED SOLELY BECAUSE I WAS THE MANAGER. CLAIMANT AND RESPONDENT SETTLED CASE FOR $25,000 TO WHICH I WAS NOT RESPONSBILE TO PAY ANY PORTION OF.

CUSTOMER ALLEGED, INTER ALIA, VIOLATIONS OF SEC RULES 10B-3, 10B-5, 15G-9, FLORIDA STATUTES CHAPTER 517, AND SO ON.

$300,000.00

$125,000.00

ON 02/15/02 CLIENT WAS AWARDED $125,000. BROKER WAS SUSPENDED FOR FAILING TO PAY ORIGINAL AWARD. CLIENT HAS SINCE PASSED AWAY AND ON MARCH 29, 2007 A SETTLEMENT WAS REACHED BETWEEN THE PARTIES IN THE AMOUNT OF $42,000. ACKNOWLEDGEMENT OF RECEIPT OF SETTLEMENT PAYMENT WAS MADE BY THE CLIENT'S ESTATE AND CASE WAS DISMISSED WITH PREJUDICE.

FLORIDA DIVISION OF SECURITIES AND INVESTOR PROTECT*See FAQ #1*

Not Provided

Consent

Monetary/Fine

$409.50

ON MARCH 29, 1990 FLORIDA DEPARTMENT OF BANKING AND FINANCE ISSUED A CEASE AND DESIST ORDER DIRECTED AT RESPONDENTS THOMAS JAMES ASSOCIATES, INC., LEE SILER AND OTHERS. ON JUNE 7, 1990 MR. SILER ENTERED INTO A STIPULATION AND CONSENT AGREEMENT WITH THE DEPARTMENT WHERE MR. SILER AGREED TO AMONG OTHER THINGS TO FOR A TWO YEAR PERIOD TO NOT ACT IN THE CAPACITY OF AN ISSUER, UNDERWRITER, BROKER/DEALER, PARTNER, OFFICER, DIRECTOR, MANAGER, CONTROL PERSON, OR OWNER, TO NOT EXERCISE DISCRETIONARY AUTHORITY, TO BE STRICTLY SUPERVISED, TO PAY A FINE OF $409.50, AND TO REPORT ANY COMPLAINTS DIRECTED AT SELF. AS A RESULT OF THE STIPULATION, THE DEPARTMENT ENTERED A FINAL ORDER IN REGARD TO SILER ON JUNE 25,1990.

DURING MY FIRST MONTH IN THE BROKERAGE BUSINESS, THE FIRM I WAS WORKING FOR (THOMAS JAMES) BROUGHT AN IPO TO MARKET. THE STATE OF FLORIDA CLAIMED IT WAS NOT PROPERLY REGISTERED. I HAD NO KNOWLEDGE OF THIS, AS IT WAS MY FIRST MONTH IN THE BUSINESS.