FINRA Files Complaint Against Broker James Thaddeus Walesa Over Refusal to Cooperate

Former broker James Thaddeus Walesa (CRD #1061209) is facing a Financial Industry Regulatory Authority (FINRA) complaint after allegedly refusing to provide documents or appear for testimony during an ongoing investigation.

According to FINRA, Walesa declined multiple requests for information and failed to comply with sworn testimony requirements. The investigation centers on his business practices, his 2021 departure from Arkadios Capital, and issues raised in a related investor arbitration (Case #2023080442901).

Why FINRA Filed the Complaint

According to the complaint, FINRA’s examination began in November 2023 and focused on whether Walesa engaged in sales-practice violations or undisclosed private securities transactions while registered with Arkadios Capital. The inquiry also reviewed allegations from [Customer B & Customer Family Trust] v. Arkadios Capital & James Thaddeus Walesa, FINRA 23-03184 (Nov. 1, 2023), which claimed that Walesa recommended $300,000 in speculative private placement investments in AIU Alternative Care, Inc. (now Clearday, Inc.), including a $200,000 investment shortly before an elderly customer’s passing and an additional $100,000 thereafter.

As part of this inquiry, FINRA issued two sets of on-the-record testimony and document/information requests pursuant to FINRA Rule 8210:

• October 8, 2024: Requests for testimony and for documents/information (including offering materials provided to customers, lists of Arkadios customers who invested in Clearday, AIU and personal bank statements, and other records).
• November 4, 2024: Follow-up requests for testimony and for the same categories of documents, with an explanation of FINRA’s jurisdiction.

The complaint states these requests were served on Walesa’s counsel by certified mail and electronically. Counsel responded that Walesa would not comply, asserting he was no longer subject to FINRA’s jurisdiction. FINRA alleges Walesa did not produce any documents or information in response to either request and did not appear on the scheduled testimony dates.

FINRA further alleges that this refusal significantly impeded the investigation and also violated FINRA Rule 2010, which requires brokers to observe high standards of commercial honor and just and equitable principles of trade.

At this stage, these are allegations only. No findings of fact or disciplinary sanctions have been issued. If the respondent does not answer the complaint, FINRA may pursue sanctions under Rule 8310, which can include fines, suspensions, or a permanent bar.

How This FINRA Action Could Impact Affiliated Investors

FINRA complaints are serious and can affect investors who worked with the brokers or firms involved. If you have concerns about your investments with James Thaddeus Walesa or Arkadios Capital, our attorneys can help you review your situation and explore possible recovery options.

At Sonn Law Group, we have extensive experience representing investors in FINRA investigations, broker misconduct claims and private placement disputes. We operate on a contingency fee basis, meaning you pay nothing unless we recover compensation on your behalf.

For a free, confidential consultation, call 833-912-3000 or complete our online contact form.