John Francis Schlagheck: Five Complaints in 2024 and a FINRA Suspension

John Francis Schlagheck has been linked to multiple allegations of improper conduct, negligence, and unsuitable investment recommendations—including those involving GWG L-Bonds. In this blog, we’ll explore his advisory history, the specific allegations filed against him, and what affected investors should know.

If you or someone you know has been impacted by John Schlagheck or another broker, don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in broker misconduct cases and will help to guide you through the process with a free consultation.

John Schlagheck’s Broker History and Disclosures

With a career spanning more than four decades, John Francis Schlagheck (CRD#: 1040673) has held roles at several financial firms. Despite this long history in the industry, his record reflects multiple disputes and serious concerns raised by former clients. As of January 2025, he has also been indefinitely suspended by FINRA.

Professional Background and Past Affiliations

Schlagheck began working in the securities industry in 1982. He has been registered with or employed by firms such as:

• IDS Financial Services Inc.
• American Express Financial Advisors Inc.
• North American Financial Group

While his experience is extensive, it is overshadowed by a growing number of customer complaints alleging misconduct and violations of industry standards.

Regulatory Disclosures and Allegations

FINRA and other regulatory bodies have reported multiple allegations involving Schlagheck. These include:

• Improper conduct and breach of fiduciary duty
• Negligence
• Unsuitable investment recommendations

Investors reviewing a financial advisor’s background should consider the number and nature of these disclosures when evaluating the risks of continuing a relationship.

Details of Customer Complaints and Settlement History

A growing number of investor disputes have been filed against Schlagheck, including multiple active arbitration claims. These allegations point to a concerning pattern of advisory behavior.

Notable Allegations and Claims

• January 2025 (Regulatory):
  • FINRA indefinitely suspended Schlagheck for a failure to comply with an arbitration award. This will last until he complies with FINRA.
• October 2024 (Pending):
  • Claim of improper conduct and breach of fiduciary duties. Damages requested: $258,205.
• October 2024 (Pending):
  • Alleged breach of contract and negligent supervision. Damages requested: $1,107,868.
• April 2024:
  • Claim of breach of fiduciary duty and negligence, breach of contract, and more. Damages requested: $193,000. This case settled.
• March 2024:
  • Claim of breach of fiduciary duty and negligence, breach of contract, and more. Damages requested: $1,213,050. This case settled.
• June 2022:
  • Claim of breach of fiduciary duty, violation of Michigan securities law, and more related to the sale of GWG L-Bonds. Damages requested: $100,000. This case settled.

These complaints reflect serious concerns, including fiduciary breaches and improper investment guidance—issues that often result in financial harm to unsuspecting investors.

GWG Holdings L-Bonds and Schlagheck’s Involvement

One key concern in Schlagheck’s record is his alleged involvement in recommending GWG Holdings L-Bonds, a product that later collapsed—leaving many investors with losses.

What Went Wrong with GWG L-Bonds

GWG Holdings defaulted on its L-Bonds in February 2022, prompting widespread investor concern. The bonds were marketed as high-yield investments but carried substantial risk, particularly for conservative investors.

Risks Investors Faced

• Illiquidity: These bonds were difficult to sell and often locked investors into long-term commitments.
• Credit Risk: GWG’s financial instability ultimately led to default.
• Suitability Questions: The bonds were often sold to clients who may not have understood or been suitable for such speculative products.

For more information on the situation with GWG L-Bonds, watch our video below:

https://www.youtube.com/watch?v=sWj4l79kVWY

Meyer Wilson Werning Helps Victims of Broker Misconduct

John Schlagheck’s regulatory history and client complaints show the risks investors face when advisors fail to uphold their fiduciary responsibilities.

If you or someone you know has suffered losses due to the actions of advisors like John Francis Schlagheck, the experienced attorneys at Meyer Wilson Werning are here to help. With more than 20 years in the industry and over $350 million recovered for our clients, our focus on investment fraud and securities litigation has helped many investors recover their losses. Contact us today for a free consultation to discuss your case and learn how we can assist you in protecting your financial interests.

Frequently Asked Questions

What are the main allegations against John Schlagheck?

John Schlagheck faces multiple allegations, including improper conduct, breach of fiduciary duties, and negligence, with damages requested in various customer disputes.

What are GWG Holdings L-Bonds and their associated risks?

GWG Holdings L-Bonds are high-interest, speculative investments that have been deemed unsuitable for many investors, especially following the company’s default on its obligations in February 2022. These bonds were marketed as high-risk investments, which may not be suitable for those with low-risk tolerance.

What should investors know about breach of fiduciary duty?

Breach of fiduciary duty occurs when a financial advisor fails to act in the best interests of their clients, which can lead to financial losses for investors. In Schlagheck’s case, allegations of such breaches raise concerns about the safety of investments made under his advisement.