FINRA Claim Filed Against KMS Financial Services Over MLP Investment Losses

PHOENIX - June 3, 2016 - PRLog -- The claim, filed by The White Law Group, was submitted to FINRA Dispute Resolution on behalf of two Arizona investors alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim further alleges that KMS Financial Services unsuitably invested the client in the following high risk oil and gas MLP investments (among potentially others):

Breitburn Energy Partners (which recently declared bankruptcy)

LinnCo (formerly Linn Energy)

Vanguard Natural Resources

Energy Transfer Partners

The claim seeks damages between $50,000 and $100,000.

Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.  It is alleged that KMS Financial failed to perform the necessary due diligence on these investments prior to recommending them to these particular investors.

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional.  It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.

For more information on the claim filed by The White Law Group, please contact the firm's Chicago office a 1-888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.