FINRA Claims Involving Triad Broker James Walesa
The White Law Group is currently representing dozens of investors who have claims against Triad Advisors and Arkadios Capital involving James (Jim) Walesa. These claims involve Walesa allegedly improperly selling his clients’ interests in unsuitable, risky alternative investments.
If you have suffered investment losses with former Triad Advisor, James Walesa (CRD # 1061209) of Park Ridge, Illinois, the securities attorneys at The White Law Group may be able to help you to recover your investment.
James Walesa’s Clearday Loses Florida Real Estate Judgment
According to Investment News on February 21, James Walesa, former broker and now CEO of Clearday, encountered a setback with a $6.2 million judgment linked to Naples, Florida real estate. Our claims allege he sold inappropriate, illiquid investments to clients, exceeding $35 million in damages.
Unfortunately for investors, Clearday’s stock, currently trading at only 0.54 cents per share, is particularly concerning for Walesa’s former clients.
The company’s involvement in litigation over its Naples residential community, combined with a defaulted mortgage loan, contributes to uncertainty. Clearday is exploring options to address the judgment, including raising capital or negotiating a deal, according to the article.
James Walesa – Triad Advisors
James (Jim) Walesa is not currently registered as a broker, according to his broker report. According to public records, Walesa filed for personal bankruptcy through the Western Texas Bankruptcy Court on 9/11/2023.
The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA. According to this FINRA BrokerCheck report, James Walesa was affiliated with the following firms during his career, among others:
09/04/2019 – 12/17/2021, ARKADIOS CAPITAL (CRD#:282710), Park Ridge, IL,
B, 11/06/2000 – 09/05/2019, TRIAD ADVISORS LLC (CRD#:25803), PARK RIDGE, IL
Jim Walesa reportedly has nine customer complaints on his record. Allegations include the following among others:
- Financial Professional made unsuitable recommendations for investment in businesses for which he also served in positions of ownership, operation, or direction.
- Unsuitable recommendations, failure to conduct due diligence, misrepresentation, and omission of material facts regarding the sale of alternative investments.
- Breach of contract, securities statute violations, negligence, and breach of fiduciary duty alleged in relation to several alternative investments.
Jim Walesa Allegedly Recommended the Following Alternative Investments:
The alternative investments Walesa allegedly recommended include the following, among others:
Cibolo Creek Partners LLC
Farm to Market Development Partners I
Citadel Exploration Inc.
Shadow Retail Partners LP
Trident Healthcare Properties
Allied Integral United
Roundrock Development Partners LP
Gadsden Growth Properties
Allied Integral AIU Hill Country
Memory Care America
Longhorn Lodging Partners LP
Hill Country Partners, LP
Allied Integral United, Series A Pfd Stock
Clearday Operations, Inc. Series A
Clearday Operations, Inc. Series F Pfd Stk
AIU Alternative Care Preferred Stock
AIU Clearday Operations, Inc. Series A
The Suitability Rule, also known as FINRA Rule 2111, is a regulation established by the Financial Industry Regulatory Authority (FINRA) in the United States. The rule requires brokers and financial advisors to recommend only those investments that are suitable for their clients’ financial situations, investment objectives, risk tolerance, and other relevant factors. Key aspects of the Suitability Rule include:
- Know Your Customer: Brokers and advisors must gather information about their clients’ financial circumstances, investment goals, risk tolerance, and investment experience to understand their individual needs and objectives.
- Reasonable Basis Suitability: Before recommending an investment, brokers must conduct reasonable due diligence to understand the features and risks of the investment and ensure it is suitable for at least some investors.
- Customer-Specific Suitability: Brokers must ensure that recommended investments are suitable for the specific client based on their individual financial situation, investment objectives, risk tolerance, and other relevant factors.
- Quantitative and Qualitative Factors: Brokers must consider both quantitative factors, such as the client’s financial situation and investment objectives, as well as qualitative factors, such as the client’s risk tolerance and investment experience, when determining suitability.
- Ongoing Monitoring: Brokers and advisors must periodically review and monitor their clients’ investment portfolios to ensure that they remain suitable based on any changes in the client’s financial situation, investment objectives, or risk tolerance.
The Suitability Rule aims to protect investors by ensuring that brokers and advisors make recommendations that are appropriate for their individual circumstances and objectives.
If your broker fails to comply with Suitability rules, you may be able to recover your investment losses through FINRA Arbitration.
Recovery of Investment Losses
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
If you have suffered investment losses with James Walesa and Triad Advisors or Arkadios Capital, the securities attorneys at the White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
With over 30 years of securities law experience, The White Law Group has the expertise to help investors to recover their securities fraud losses. For more information, please visit our website, www.whitesecuritieslaw.com.
Tags: Allied Integral, Arkadios, broker investigation, Clearday, James Walesa, Triad Last modified: February 22, 2024