According to FINRA, Mark Sam Kolta (CRD #5324620) of Miami, Florida is facing sanctions after an Office of Hearing Officers (OHO) decision found that he made unsuitable recommendations and falsified customer records. Kolta is currently appealing the decision to the National Adjudicatory Council (NAC), and the sanctions are not in effect pending review. The OHO decision imposed a bar from association with any FINRA member in all capacities and ordered Kolta to pay disgorgement of commissions in the amount of $297,823, plus prejudgment interest. The sanctions were based on 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 were unsuitable based on the customers' financial situations, investment objectives, and risk tolerances, including excessive concentrations of the REIT in relation to their net worth. The REIT prospectus described the investment as speculative and high-risk, appropriate only for persons who could afford a complete loss, which the senior customers could not afford. Most customers had modest incomes and relatively low net worth, needing liquidity at the time they invested. Despite their liquidity needs, Kolta recommended that customers invest a large percentage of their liquid net worth in the illiquid, non-traded REIT. Kolta received $297,823 in commissions from these sales. All customers subsequently filed arbitration claims against Kolta's member firm, and the firm settled all claims by paying the customers millions of dollars. The OHO decision also found that Kolta caused his firm to make and preserve false books and records by recording materially false and inaccurate information on new account forms, updates to customer account forms, and REIT investment documents. Kolta repeatedly recorded inaccurate income, net worth, and liquid net worth figures, overstated investment experience, investment objectives, and risk tolerances. The decision further found that Kolta falsified account records and investment documents on multiple occasions so customers would be permitted to buy the REIT. Without these falsifications, his firm would likely not have allowed many of the REIT investments. FINRA also found that Kolta sent customers emails containing misleading, unwarranted, and promissory statements that failed to address the risks associated with the REIT, and that he failed to obtain principal approval before sending those emails. Investors should be aware that this case remains under appeal and the sanctions are not yet final.