Michael Petyak Allegedly Recommended Unsuitable Investment

Michael Petyak (CRD #: 2976602), a broker registered with Calton & Associates, is involved in a pending dispute, according to his BrokerCheck record, accessed on June 25, 2022. Read on if you have questions about Michael Petyak’s conduct as a broker.

Alleged Unsuitable Investment Recommendation

In a dispute filed on April 18, 2022, investors alleged that Michael Petyak made an investment recommendation for the purpose of generating high commissions and fees for himself, and that the clients were subsequently unable to generate the returns they would have received from a diversified portfolio. This dispute is currently pending.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. These profiles include information about clients’ age, risk tolerance, and financial goals.

Suitability also applies to trades and recommendations of investment strategies:

• Quantitatively unsuitable trading, or churning, involves the excessive trading of securities to generate commissions.
• Investment strategies may violate this rule by causing an investor’s portfolio to become over-concentrated in one stock or sector.
• Investments that come with high commissions for the broker are less likely to generate a return for the investor, making them often unsuitable. 

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

Background Information

Michael Petyak 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

Michael Petyak is a registered broker in Florida, Louisiana, Mississippi, and Texas. He is also a registered investment adviser in Louisiana, Mississippi, and Texas.

He has also worked for the following firms:

• Cambridge Investment Research Advisors (CRD#:134139)
• Cambridge Investment Research (CRD#:39543)
• LPL Financial (CRD#:6413)
• AIG Retirement Advisors (CRD#:42803)
• Hancock Investment Services (CRD#:40637)
• Amsouth Investment Services (CRD#:15692)
• Wachovia Securities (CRD#:19616)
• MML Investors Services (CRD#:10409)
• First Union Securities (CRD#:19616)
• First Union Brokerage Services (CRD#:8112)
• Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)

Kurta Law Can Help

If you worked with Michael Petyak 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.