Our firm is investigating former Calton & Associates, Inc. broker John Raymond Drabek (CRD# 1335813) of Mesa, Arizona for potential investment-related misconduct.
Financial Advisor’s Career History
Based on FINRA’s BrokerCheck file, Mr. Drabek is not currently registered. His prior registration and employment history includes:
- Calton & Associates, Inc. — Tampa, FL (09/2010–07/2024); previously Mesa, AZ (01/1996–11/2009)
- VALIC Financial Advisors, Inc. — Phoenix, AZ (11/2009–09/2010)
- BA Investment Services, Inc. — Oakland, CA (06/1995–12/1995)
- Piper Jaffray Inc. — Minneapolis, MN (03/1994–06/1995)
- Liberty Securities Corporation — Purchase, NY (08/1991–03/1994)
- GAF Financial and Insurance Services (05/1991–09/1991)
- PAMCO Securities and Insurance Services (05/1991–08/1991)
- Calton & Associates, Inc. — Tampa, FL (04/1991–05/1991)
- A.G. Edwards & Sons, Inc. — St. Louis, MO (12/1987–06/1990)
- Buchanan & Co., Inc. (01/1985–12/1987)
John Drabek Fraud Allegations and Investor Complaints Explained
FINRA records show two customer dispute disclosures involving Mr. Drabek:
2023–2024 Customer Arbitration (Settled):
- Allegations: Unsuitable recommendations on non-traded REITs — Griffin Realty Trust and CIM Real Estate Finance Trust.
- Alleged damages: $200,000.
- FINRA arbitration filed:** July 5, 2023 (Case No. 23-01905).
- Resolution: Settled on May 6, 2024 for $80,000, including $40,000 individual contribution.
2012–2013 Customer Arbitration (Settled):
- Allegations: Unsuitability, failure to supervise, negligence, misrepresentation, breach of contract involving real estate securities.
- Complaint received: August 6, 2012; FINRA case 12-02726 filed July 25, 2012.
- Resolution: Settled on July 18, 2013 with $24,000 monetary compensation; $12,000 individual contribution.
Disclosure Snapshot (for context):
- Customer Dispute (2012–2013) — Settled; alleged unsuitability, failure to supervise, negligence, misrepresentation, breach of contract; $24,000 to customer; $12,000 individual contribution.
- Customer Dispute (2023–2024) — Settled; alleged unsuitable non-traded REITs recommendations (Griffin Realty Trust; CIM Real Estate Finance Trust); $80,000 settlement; $40,000 individual contribution; alleged damages $200,000.
Key Dates & Exams (relevant background): Mr. Drabek passed the Series 7 (01/19/1985), Series 24 (01/30/2003), SIE (10/01/2018), Series 63 (02/11/1985), and Series 66 (12/14/2009).
To obtain a copy of John Raymond Drabek’s FINRA BrokerCheck report, visit this link.
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
FINRA Rule 2111 (Suitability):
Rule 2111 requires that a broker have a reasonable basis to believe a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile (including risk tolerance, liquidity needs, time horizon, and financial situation). Allegations of unsuitable recommendations in non-traded REITs—like those involving Griffin Realty Trust and CIM Real Estate Finance Trust—raise Rule 2111 concerns because such products often entail illiquidity, distribution sustainability issues, valuation opacity, and heightened risks that may be inconsistent with many investors’ profiles. When customers claim significant losses or illiquidity from these products, arbitrators frequently assess whether the broker satisfied reasonable-basis and customer-specific suitability obligations, and whether the risks were fairly presented.
FINRA Rule 3110 (Supervision):
Rule 3110 mandates that firms establish and maintain a supervisory system reasonably designed to achieve compliance with applicable securities laws and FINRA rules. Customer allegations of failure to supervise often accompany unsuitable-recommendation cases, particularly where a pattern of sales in higher-risk, complex or illiquid products appears in a broker’s book without adequate pre-approval, product training, concentration reviews, exception reporting, or principal-level scrutiny. If supervisory lapses contributed to the disputed recommendations or concentrations, Rule 3110 issues may be implicated at the firm level.
FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade) & Rule 2020 (Use of Manipulative, Deceptive or Other Fraudulent Devices):
Allegations such as misrepresentation, negligence, and breach of contract may also touch Rule 2010’s broad requirement to observe high standards of commercial honor and just and equitable principles of trade. Where customers assert that material risks, fees, liquidity limits, or distribution practices of non-traded REITs were omitted or misstated, arbitrators sometimes analyze whether the conduct violated Rule 2010 and, in more severe cases of deceptive conduct, Rule 2020. The precise application depends on the facts proved in each dispute record and hearing.
For over 45 years, Robert Wayne Pearce has helped investors recover losses caused by broker fraud, negligence, and unsuitable recommendations. His firm, The Law Offices of Robert Wayne Pearce, P.A., represents clients nationwide on a no-recovery, no-fee basis. Call (800) 732-2889 or email pearce@rwpearce.com for a free case review with an experienced securities attorney.
