Joseph Michaletz: Did His Recommendations Lead to $2 Million Loss?

Joseph Michaletz (CRD #: 1327534), a broker registered with DAI Securities, is facing a pending unsuitability dispute, according to his BrokerCheck record, accessed on January 15, 2022. He is also an investment advisor registered with DAI Wealth. 

According to the allegations filed on August 10, 2021, Joseph Michaletz recommended an unsuitable investment. The investor is seeking $70,000一the case is pending.

FINRA Rule 2111

FINRA Rule 2111 requires financial advisors to have a “reasonable basis” to believe that a recommended transaction or investment strategy is suitable for their client. Investments may be unsuitable because they do not align with the investor’s financial goals, investing experience, age, or risk tolerance.

• Investments can be unsuitable because they are high risk and likely to lose money.
• Securities may also be unsuitable because they are illiquid, meaning that they are meant to be held for an extended period of time and may be costly to cash out.
• Securities must also be quantitatively suitable, meaning that brokers executed an excessive number of trades.
• These requirements apply to the overall investment strategy as well as the investments themselves.

A violation of FINRA Rule 2111 is also a violation of FINRA Rule 2010, which requires member firms and their associated persons to “observe high standards of commercial honor and just and equitable principles of trade”.

Prior Disputes

This is not Joseph Michaletz’s first investor dispute.

Pending Disputes

On March 24, 2021, Joseph Michaletz was involved in an investor dispute alleging unsuitable recommendations and overconcentration of private placements. The investors are seeking $2,550,000; the dispute is pending. 

On February 2, 2021, Joseph Michaletz was involved in an investor dispute alleging unsuitable recommendations and fraudulent or negligent misrepresentations or omissions. The damage amount requested is $457,000; the dispute is pending.

Settled Disputes

On July 2, 2020, Joseph Michaletz was involved in an investor dispute for allegedly purchasing unsuitable alternative investments between 2012 and 2015. The case was settled for $55,000.00.

On July 2, 2020, Joseph Michaletz was involved in an investor dispute for alleged breach of fiduciary duty, negligence, and breach of contract related to $750,000 investments made between August 2017 and May 2018. The case was settled for $152,000.

On January 17, 2020, Joseph Michaletz was involved in an investor dispute for alleged negligence in connection with various GPB Investments made in 2016-2018. The case was settled for $144,314.05.

On December 4, 2019, Joseph Michaletz was involved in an investor dispute after allegedly recommending unsuitable GPB products. The case was settled for $183,964.53.

Background Information

Joseph Michaletz has passed the following exams:

• Series 65 – Uniform Investment Adviser 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

Joseph Michaletz is a registered broker in 28 states. He is also a registered investment advisor in Minnesota and Texas.

He has also worked with the following firms:

• Concorde Investment Services (CRD#:151604)
• Triad Advisors  (CRD#:25803)     
• TransAmerica Financial Advisors  (CRD#:3600)
• TransAmerica Securities Sales Corporation (CRD#:17970)   
• Mutual Benefit Financial Service Company (CRD#:4882)       

Kurta Law Can Help

If you have worked with Joseph Michaletz and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors 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.