John Drabek Subject of an Investor Dispute Involving REITs

John Drabek (CRD #: 1335813), a broker registered with Calton & Associates, Inc., is facing a new investor dispute. This is according to his BrokerCheck record, accessed on August 10, 2023. Keep reading if you have questions about his alleged conduct as a broker. 

On July 7, 2023, an investor alleged that John Drabek made unsuitable investment recommendations to invest in two REITs: Griffin Realty Trust and CIM Real Estate Finance Trust. The investors are seeking $200,000. 

What is a REIT? 

A real estate investment trust (REIT) allows investors to generate returns from a real estate portfolio without taking on the cost and responsibility of managing the properties. REITs tend to be illiquid, making them unsuitable for many investors.

What is an Unsuitable Investment?

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must examine the investor’s profile, which contains the following investor characteristics:

• Age
• Financial goals
• Risk tolerance
• Time horizon (i.e., how long the investor plans to hold the investment)
• Investing experience
• Tax status

Investors who rely on brokers for recommendations may be able to recover their losses through FINRA arbitration.

Background Information 

John Drabek has passed the following exams: 

• Series 66 Uniform Combined State Law Examination 
• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 
• Series 24 General Securities Principal Examination 

He is also a registered broker in 17 states and is a registered investment adviser in Connecticut. 

John Drabek has registered with the following firms: 

• Calton & Associates (CRD #: 20999) 
• Valic Financial Advisors (CRD #: 42803) 
• BA Investment Services (CRD #: 12965) 
• Piper Jaffray (CRD #: 665) 
• Liberty Securities Corporation (CRD #: 14416) 
• GAF Financial and Insurance Services (CRD #: 14123) 
• Pamco Securities and Insurance Services (CRD #: 11028) 
• A.G. Edwards & Sons (CRD #: 4) 
• Buchanan & Co. (CRD #: 7113) 

Kurta Law Can Help

If you worked with John Drabek and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.