Out of DeWaay: Another top rep exits troubled B-D

NOV 13, 2012
DeWaay Financial Network LLC has lost another star adviser as the beleaguered firm continues to wait out lawsuits and legal complaints from investors stemming from failed private real estate deals. Thomas Karsten, who generated between $1.5 million and $2 million in fees and commissions annually, left DeWaay May 25 to join Triad Advisors Inc. His firm, Karsten Advisors, is based in Fort Worth, Texas. It was the second time last month that DeWaay lost a star Texas broker. Earlier, Erin Botsford left DeWaay to join LPL Financial LLC. Like Ms. Botsford's, Mr. Karsten's tenure at DeWaay was only two years, a relatively brief time for a star broker. “We appreciate everything Tom's firm did for us over the past two years,” said Matt Stahr, president of DeWaay. The parting was friendly, Mr. Stahr noted, adding that Mr. Karsten's practice has evolved increasingly to one based on charging fees for advice and an expanding tax practice. “Triad was a better fit” than DeWaay, which focuses on alternative investments, Mr. Stahr said.

LEGAL REPRIEVE

Mr. Karsten didn't return a call Wednesday seeking comment. In April, DeWaay Financial got a reprieve of sorts from its legal problems. Judge John Lloyd of the Iowa District Court for Decatur County kept in place a temporary restraining order while he considered combining and certifying two class actions filed against the broker-dealer. The order also prevented more than a dozen arbitration claims filed against the company from proceeding. Scores of broker-dealers have shut down over the past few years due to legal costs and awards to clients stemming from failed private investments. Mr. Stahr declined to comment about any developments in the DeWaay legal case in the Iowa court, which is still pending. [email protected]

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.