FINRA Arbitration Filed Against Dean Mustaphalli by an Investor in Mustaphalli Capital Partners Fund

June 3, 2014 - PRLog -- In June of 2014, an investor in the Mustaphalli Capital Partners Fund filed an arbitration against Dean Mustaphalli and Sterne Agee Financial Services, Inc.  The investor, who was a bus driver, invested his life savings of 30 years totaling $600,000 into the Fund in March of 2011. The Fund has since lost 97% of its value. Mustaphalli, was an employee and registered representative of Sterne Agee from 12/09 through 09/2011.


FINRA Rule 3010(a) requires each FINRA member to “establish and maintain a system to supervise the activities of each registered representative… that is reasonably designed to achieve compliance with applicable securities laws and regulations, and applicable NASD rules.” Rule 3010(a) requires all brokerage firms to supervise their employees’ securities related activities. It is alleged that the investor who brought the FINRA arbitration was not an accredited investor and should not even have been allowed to purchase this alleged “hedge fund”.
Mustaphalli, while a FINRA registered representative, has racked up no less than thirteen reported customer complaints on his U4 and a Wells notice. The significance of Mustaphalli’s  thirteen customer complaints is underscored in FINRA NOTICE to MEMBERS 03-49. In 2003, FINRA conducted a review of the CRD’s of all 663,000 registered representatives, only 2,751 (.41%) had been the subject of (3) or more customer complaints. In other words Mustaphalli’s customer complaints rank him in the top one-hundredth percent of all registered representatives for customer complaints.


The aggrieved investor is being represented by Lars Soreide, Esq., of the Soreide Law Group.  The Soreide Law Group represents aggrieved investors nationwide before FINRA and is actively investigating the Mustaphalli Capital Partners Fund. If you were an investor in the Mustaphalli Capital Partenrs Fund call (888) 760-6552 or visit www.SecuritiesLawyer.com.  There is no charge for any consultation and there is no fee or costs unless there is a successful recovery.