Securities Arbitration Lawyers BlogBroker Joseph Michaletz Subject Of Eight Client Disputes Totaling $4.6M
Joseph Michaletz (CRD#: 1327534, aka “Joseph Gerard Michaeletz”, “Joseph Gerald Michaeletz” and “Joe Michaletz”) is a currently registered broker and investment advisor currently employed with Dai Securities of Mankato, MN. His previous employers include Concorde Investment Services, LLC (CRD#:151604), Triad Advisors, Inc. (CRD#:25803) and Transamerica Financial Advisors, Inc. (CRD#:3600), all also of Mankato, MN. He has been in the industry since 1984.
Silver Law Group represents clients of Joseph Michaletz for claims to recover investment losses suffered in GPB Capital Holdings.
Joseph Michaletz Disclosures
From 5/29/2020 through 3/24/2021, eight client disputes were filed against Joseph Michaletz and remain listed as pending. The collective allegations include:
- Unsuitable recommendations
- Over-concentrations of private placements
- Negligent due diligence in private placements
- Breaches of fiduciary duty
- Fraudulent/negligent misrepresentations and omissions
- Breach of contract
- Failure to supervise
The time periods of these different disputes range from 2013 to 2018. Requested damages from these eight disputes total $4,605,000.
Four additional client disputes have been settled. They involved investments made while Joseph Michaletz was with Triad Advisors, and carried over to Concorde Investment Services. One of the disputes, filed on 7/2/2020, went into FINRA arbitration. The claimant alleged that he purchased “unsuitable alternative investments” from 2012 through 2015. The settlement amount through arbitration for this case was $55,000.
The remaining three disputes with similar allegations were filed on 12/4/2019, 1/17/2020, and 1/28/2020, and were settled without arbitration.
Private Placements
Has your broker suggested investing in a private placement? If you’ve been approached about a private placement, there are a few things you should understand before considering investing in one.
A private placement is similar to an initial public offering (IPO) but with one major difference: the offering is made to financial institutions such as banks, mutual funds, pension funds insurance companies, and wealthy individual investors. These offerings are not made to the public as they would be with an IPO. All investors are required to be “accredited.”
Private placements aren’t regulated the way public sales are. These investments don’t have to register with the SEC like public offerings, and information like a prospectus isn’t required. Therefore, it may be more difficult to learn about these types of offerings prior to investment.
Startup companies, particularly tech companies frequently use private placements to raise capital while staying private. Should they decide to offer an IPO, then they would be subjected to the same SEC rules as any other publicly traded company.
A private placement isn’t necessarily a bad investment. They have considerably more flexibility than publicly traded investments and may offer a higher return. Private placement debt securities are similar to bank loans or bonds, may be either secured or unsecured, and are typically for the long term.
Did You Invest With Joseph Michaletz?
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today and let us know how we can help.