Peter Kyle Janssen (CRD# 5691028). Our firm is investigating Janssen Partners, Inc. broker and financial advisor Peter Kyle Janssen (CRD# 5691028) of Fairfield, Iowa for potential investment-related misconduct involving private placements and other alternative investments.
Financial Advisor’s Career History
According to FINRA BrokerCheck, Peter Kyle Janssen has been registered in the securities industry since 2011. He is currently registered as a General Securities Representative with Janssen Partners, Inc. (CRD# 43940) in Fairfield, Iowa, where he has been associated since December 21, 2022.
Janssen has been registered with the following broker-dealers over the course of his career:
- Janssen Partners, Inc. (Fairfield, IA): 07/2011 – 02/2013; 07/2020 – 02/2022; and again from 12/21/2022 to the present.
- Aegis Capital Corp. (New York, NY): 02/2013 – 10/2014.
- Katalyst Securities LLC (New York, NY): 02/2015 – 10/2015 and 10/2015 – 05/2020.
He is currently licensed in multiple states, including California, Florida, Nevada, New York, and Texas.
Other Business Activities and Crypto Fund
In addition to his brokerage work, FINRA records show that Janssen is the manager of FirstBlock Capital Fund I, LP, an investment fund focused on crypto assets, located in Delray Beach, Florida. He reports that he manages the fund and operations using a buy-and-hold strategy and spends several hours per week on this activity during trading hours.
Peter Kyle Janssen Fraud Allegations and Investor Complaints Explained
FINRA BrokerCheck for Peter Kyle Janssen discloses four customer disputes, including one arbitration award to a customer and three settled customer complaints. All of the matters are investment-related and involve allegations of misrepresentation, negligence, breach of fiduciary duty, and unsuitable private placement investments—particularly in high-risk offerings such as Mega Blockchain and NewEdge Signal Solution Inc.
FINRA Arbitration Award – Mega Blockchain Private Placement (Case No. 23-00044)
In a FINRA arbitration case filed in January 2023 (FINRA Case No. 23-00044), a customer alleged that while associated with Katalyst Securities LLC, Peter Kyle Janssen engaged in:
- Negligence
- Breach of fiduciary duty
- Negligent supervision
- Fraud
The allegations arose from a December 2017 investment in a Mega Blockchain offering, which the firm and Janssen described as a private placement involving exposure to the cryptocurrency market. The customer alleged that Janssen misrepresented the terms of the offering and recommended an investment that was unsuitable for her risk profile. The customer invested approximately $94,930.40 in the Mega Blockchain private placement.
Key details include:
- Product type: Private placement in Mega Blockchain (categorized variously as “Other: Private Placement” and “Equity Listed” in different portions of the disclosure).
- Alleged damages: $94,930.40.
- Arbitration forum: FINRA Dispute Resolution.
- Award date: March 29, 2024.
- Outcome: The FINRA arbitration panel found against Janssen and others, and held that Respondent Peter Kyle Janssen is jointly and severally liable for and must pay the customer $46,440.34 in compensatory damages.
This award suggests the arbitrators determined there were significant issues with how the Mega Blockchain private placement was recommended and sold to the customer.
Settled Customer Complaint – NewEdge Signal Solution Inc Private Placement (Alleged Damages $200,000)
Another customer dispute reported on Janssen’s BrokerCheck involves a private placement investment in NewEdge Signal Solution Inc while he was a registered representative of Katalyst Securities LLC. The firm disclosure states that:
- The customer alleged Janssen misrepresented information, made misleading statements, and recommended an unsuitable private placement investment in NewEdge Signal Solution Inc.
- The customer invested $100,000 on or about January 18, 2017 and an additional $100,000 on or about June 20, 2018, for total alleged damages of $200,000.
- The matter proceeded as a FINRA arbitration (Case No. 21-01421), filed June 2, 2021.
- The complaint was received on August 12, 2021.
- The dispute was settled on June 1, 2022 for $35,000, with no contribution reported from Janssen personally.
The broker’s version of the disclosure characterizes the customer as a sophisticated investor who had purchased multiple private placements totaling approximately $1.5 million, but who later alleged that one $200,000 private placement was unsuitable.
Settled Customer Complaint – Mega Blockchain Private Placement (Alleged Damages $50,000)
A separate customer complaint relates to another Mega Blockchain private placement sold through Katalyst Securities LLC. FINRA records reflect that:
- From early December 2017 through December 29, 2017, Janssen communicated with the claimant about investing in Mega Blockchain, a venture opportunity in the cryptocurrency market.
- The claimant executed documents representing that he was an accredited investor under federal securities laws, with a net worth of approximately $1.5 million, liquid assets of $1 million, and a speculative investment objective.
- The claimant initially considered investing $100,000 but ultimately invested $50,001 on December 29, 2017.
- The product is described as “Other: Private Placement in a private entity,” with alleged damages of $50,000.
- The complaint was received on November 14, 2019, and the arbitration (FINRA Case No. 19-03372) was filed on November 12, 2019.
- The case was later settled on June 29, 2020 for $27,500, with no individual contribution reported from Janssen.
The firm statement emphasizes that the settlement was reached to avoid the cost of protracted litigation and that Katalyst denied any wrongdoing.
Settled Customer Complaint – Mega Blockchain Private Placement (Alleged Damages $30,000)
A third settled matter also involves an investment in the Mega Blockchain private placement while Janssen was associated with Katalyst Securities LLC. The disclosure indicates that:
- In late December 2017, a different claimant invested $30,000 in the same Mega Blockchain private placement.
- The claimant represented that he was an accredited investor with a net worth of over $5 million and a speculative investment objective.
- The customer alleged losses of $30,000 arising from the investment.
- The complaint was received on November 13, 2019, and the corresponding FINRA arbitration (Case No. 19-03367) was filed on November 12, 2019.
- The firm version of the disclosure reports that the complaint was settled on June 3, 2020 for $17,500, with no personal contribution by Janssen.
- The broker’s version reports a settlement of $30,000, again with Janssen denying wrongdoing.
Taken together, these disclosures show a pattern of customer disputes stemming from concentrated activity in speculative private placements, including Mega Blockchain and NewEdge Signal Solution Inc, along with allegations of misrepresentation and unsuitability.
Summary of Disclosed Customer Disputes
- Total customer disputes disclosed: 4 (all final).
- Types of issues alleged:
- Misrepresentation and misleading statements regarding private placements.
- Unsuitable recommendations of speculative private placements in emerging or risky sectors such as cryptocurrency.
- Negligence, breach of fiduciary duty, negligent supervision, and fraud.
- Customer outcomes:
- One FINRA arbitration award totaling $46,440.34 in compensatory damages against Janssen (joint and several).
- Three settled customer disputes with reported settlement payments of $35,000, $27,500, and $17,500, respectively (firm-reported amounts).
To obtain a copy of Peter Kyle Janssen’s FINRA BrokerCheck report, visit this link.
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
FINRA Rule 2111 (Suitability)
FINRA Rule 2111, the Suitability Rule, requires that a broker or firm have a reasonable basis to believe that any recommended transaction or investment strategy is suitable for the customer based on that customer’s investment profile, including age, financial situation, tax status, investment objectives, risk tolerance, time horizon, and liquidity needs.
In the disputes involving Mega Blockchain and NewEdge Signal Solution Inc, customers alleged that Janssen recommended speculative private placements that were unsuitable for their circumstances and risk tolerance. When a broker recommends highly illiquid, high-risk private placements—especially in sectors like cryptocurrency—Rule 2111 requires:
- A reasonable-basis determination that the product itself is appropriate for at least some investors, based on due diligence into the issuer, offering terms, and risks;
- A customer-specific determination that the investment is appropriate for the particular customer, given the client’s investment profile; and
- Where there is a pattern of similar trades or concentrated positions, potential quantitative suitability concerns if the overall strategy becomes excessively risky or concentrated.
If Janssen recommended Mega Blockchain or NewEdge private placements without fully considering whether the customers could withstand the potential total loss of principal, illiquidity, or volatility associated with such offerings, or if he relied too heavily on bare accredited-investor representations without deeper inquiry into goals and risk tolerance, that conduct may be inconsistent with FINRA Rule 2111.
FINRA Rule 2010 (Standards of Commercial Honor and Just and Equitable Principles of Trade)
FINRA Rule 2010 requires brokers to “observe high standards of commercial honor and just and equitable principles of trade” in all of their business dealings. The rule is intentionally broad and is often cited in cases involving misrepresentation, fraud, breach of fiduciary duty, or other unethical conduct. You can learn more about this rule and how it is applied to broker misconduct on the firm’s FINRA Rule 2010 resource page.
In the FINRA arbitration award and the settled claims against Janssen, customers alleged negligence, fraud, breach of fiduciary duty, and misleading statements in connection with private placement offerings. Even where a customer qualifies as an “accredited investor,” a broker cannot:
- Exaggerate potential returns or minimize the significant risks of speculative private placements;
- Omit material facts about the issuer’s business model, financial condition, or conflicts of interest; or
- Fail to respond fairly when customers raise concerns about performance and liquidity.
When an arbitrator awards damages to a customer—particularly in a case involving allegations of fraud and misrepresentation—it often reflects a conclusion that the broker’s conduct fell below the “high standards of commercial honor” required by Rule 2010, even if the broker denies intentional wrongdoing. A pattern of similar complaints involving the same product (such as multiple Mega Blockchain disputes) can be especially problematic under this rule.
FINRA Rule 2210 (Communications with the Public)
FINRA Rule 2210 governs broker communications with the public, including written presentations, offering materials, pitch decks, and marketing emails used to sell private placements and other investments. The rule requires that all such communications be fair and balanced, not misleading, and that they provide a sound basis for evaluating the facts regarding any security or investment strategy.
In the context of the allegations against Janssen, any written or oral descriptions of Mega Blockchain or NewEdge Signal Solution Inc that overstated potential returns, downplayed liquidity constraints, or omitted key risk disclosures could raise issues under Rule 2210. For example, communications used to sell a private placement should:
- Clearly explain that private placements are illiquid, speculative, and may result in a total loss;
- Avoid promising or implying guaranteed returns; and
- Present the benefits and risks in a balanced manner, rather than emphasizing upside while ignoring downside risk.
If the communications used in these offerings failed to meet FINRA’s standards—particularly if investors were led to believe the offerings were safer, more liquid, or more diversified than they truly were—those deficiencies could support claims not only under Rule 2210, but also under Rules 2111 and 2010 and applicable state and federal securities laws.
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.
