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Dai Securities Broker Sold GPB Private Placements To Customers While At Previous Brokerage Firms

Joseph Michaletz Named in Multiple Customer Disputes Since December 2019

Joseph Gerard Michaletz, a Dai Securities broker, is the subject of seven customer complaints that were filed over the last eight months. The allegations against him claim that he sold GPB private placements to customers for whom they were unsuitable. This happened while he was a registered representative for Concorde Investment Services and before that with Triad Advisors.  

GPB Capital Holdings LLC  is accused of operating a $1.8B Ponzi scam. Many brokers and their firms did not perform the proper due diligence to make sure that the GPB Funds were legitimate investments that were safe and suitable for customers. 

At Shepherd Smith Edwards and Kantas,  our investment fraud lawyers have spent over a year pursuing investor claims against broker-dealers and registered representatives who sold these private placements. These funds paid them high commissions but have since cost thousands so much financial loss. Contact SSEK Law Firm today.

GPB Investor Fraud Claims Involving Michaletz Seek Six-Figures in Damages 

According to his BrokerCheck record, Joseph Michaletz has worked 35 years in the industry. He has been with Dai Securities since 2018. 

Before that, he was a Concorde Investment Services registered representative for three years. He also has been a broker for Dai Wealth, Triad Advisors, Transamerica Financial Advisors, Transamerica Securities Sales, Transamerica Financial Resources, and Mutual Benefit Financial Service Company.

There are currently seven customer disputes pending that name Michaletz, many of them related to the GPB Funds and private placements:

  • 12/2019: The claimants contend that Michaletz invested $900K of their money in unsuitable GPB private placements during his time with both Triad Advisors and Concorde Investment Services. 
  • 1/2020: The customer’s GPB investment fraud claim alleges breach of fiduciary duty, breach of contract, and negligence. The complaint is requesting $550K in damages.
  • 1/2020: The claimants, who worked with the accused financial advisor, invested $75K in GPB Holdings I and $75K in GPB Automotive. 
  • 5/2020: The customer is alleging unsuitable alternative investments sold between 2012 and 2015.
  • 5/2020: The customer dispute alleges breach of contract, negligence, and breach of fiduciary involving investments made in 2017.
  • 6/2020: This customer dispute makes similar allegations of breach of fiduciary duty and contract, as well as negligence, and seeks $100K in damages.
  • 6/2020: The claimant, who invested $100K in GPB Auto in 2017,  is alleging failure to supervise, breach of fiduciary duty, and breach of contract.

Triad Advisors, Concorde Investment Services, Dai Securities and Their Duty To Supervise

Broker-dealers are supposed to properly supervise their brokers and the transactions that they make. 

The lure of high commissions compelled dozens of brokerage firms to sell investments in several GPB Funds rather than do their job of protecting their customers from financial loss. Triad Advisors and Concorde Investment Services may be held liable for damages sustained by their customers who were sold GPB Capital Holdings Investments by Michaletz or another one of their brokers.

While the customer disputes in Michaletz’s BrokerCheck.com record don’t appear to name Dai Securities, the firm also has been accused of selling unsuitable GPB investments to customers. 

SSEK Law Firm is representing investors in their FINRA arbitration claims against a number of broker-dealers. These include Triad Advisors, Arkadios Capital, Ameriprise (AMP), Kalos Capital, Pruco Securities, International Assets Advisory, and others. 

If you suffered losses while working with Joseph Gerard Michaletz or any other broker, contact us today.

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