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

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]