John Francis Schlagheck, of Ottawa Lake, Michigan, a stockbroker previously registered with Intervest International Equities Corporation, has been suspended by Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member in any capacity for failing to comply with an arbitration award or settlement agreement or to properly respond to a FINRA request to provide information about his compliance. FINRA Case No. 22-01398 (January 6, 2025).
According to FINRA By-Laws and Rule 9554, FINRA suspended Schlagheck on January 6, 2025, for an indefinite period due to his failure to comply with an arbitration award or settlement agreement. In the matter, customers alleged negligence, breach of fiduciary duty, common law fraud, breach of contract, and violations of federal and state securities laws in connection with the sale of investments in GWG Holdings Inc. L Bonds, preferred stock, and GK Investments Holdings II LLC. The arbitration panel ruled that Schlagheck was liable for compensatory damages of $91,800.00.
FINRA Public Disclosure shows that Schlagheck was referenced in nine other customer initiated investment related disputes concerning Schlagheck’s conduct while associated with securities broker dealers. On October 10, 2023, a customer initiated investment related complaint involving Schlagheck’s conduct was settled for $15,000.00 in damages based upon allegations that Schlagheck violated Michigan securities law, breached a contract, breached his fiduciary duty, and was negligent in connection with the sale of GWG L-Bonds when Schlagheck was associated with Intervest International Equities Corporation.
On February 29, 2024, a customer initiated investment related FINRA securities arbitration claim involving Schlagheck’s conduct was settled for $22,548.20 in damages based upon allegations that Schlagheck breached a contract, committed fraud, was negligent, breached his fiduciary duties, and violated state and federal securities laws in connection with the sale of GWG L-bonds when Schlagheck was associated with Intervest International Equities Corporation. FINRA Arbitration No. 22-01338.
Schlagheck was also referenced in a customer initiated investment related FINRA securities arbitration claim in which the customer requested $565,000.00 in damages based upon allegations that Schlagheck breached a contract, committed fraud, was negligent, violated state and federal securities laws, and breached his fiduciary duties. FINRA Arbitration No. 22-01338 (August 24, 2022).
On July 26, 2024, a different FINRA securities arbitration claim involving Schlagheck’s conduct was settled for $107,500.00 in damages based upon allegations that Schlagheck iolated securities rules and regulations, made unsuitable recommendations, made omissions, failed to supervise, was negligent, breached a contract, and breached fiduciary duties. FINRA Arbitration No. 24-00403.
On October 5, 2024, a customer filed an investment related FINRA securities arbitration claim involving Schlagheck’s conduct in which the customer requested $1,107,868.00 in damages based upon allegations that Schlagheck violated securities laws and industry rules, negligently supervised certain representatives, breached a contract, and breached his fiduciary duties in connection with the sale of GWG L-Bonds. FINRA Arbitration No. 24-01925.
Schlagheck was also referenced in a FINRA securities arbitration claim in which the customer requested $258,205.00 in damages based upon allegations that Schlagheck was negligent, breached his fiduciary duties, breached a contract, negligently supervised certain representatives, and violated securities laws. FINRA Arbitration No. 24-02176 (October 16, 2024).
On October 16, 2024, a different customer filed an investment related FINRA securities arbitration claim involving Schlagheck’s conduct in which the customer requested $209,267.00 in damages based upon alleged breach of fiduciary duty and negligence. FINRA Arbitration No. 24-02177.
Schlagheck was associated with Cape Securities Inc. in McDonough, Georgia, from October 18, 2022, to March 6, 2023. He was associated with Intervest International Equities Corporation in Ottawa Lake, Michigan, from August 17, 2017, to October 5, 2022.
