A former broker who left the securities industry at the end of 2021 to run his publicly listed medical company and who is now the target of client complaints had a setback this month when he and his company lost a $6.2 million judgment involving real estate in Naples, Florida.
James Walesa was a financial advisor for 39 years at eight firms, according to his BrokerCheck report, and was registered with Triad Advisors from 2000 to 2019. Walesa is currently CEO and chairman of Clearday, a senior care technology company based in San Antonio, Texas.
Walesa's practice was based in the Chicago suburb of Park Ridge, Illinois. According to settled and potential investors claims, Walesa allegedly sold clients unsuitable, illiquid alternative investments, including real estate deals, that he also managed, owned or directed.
Dax White, an attorney representing clients seeking more than $35 million in damages in claims involving Walesa and Triad, said his clients who invested in various deals pitched and sold by Walesa years ago have wound up owning shares of Clearday, which was trading at 0.54 cents per share Wednesday.
Clearday's setback on its Florida real estate raises further potential questions for Walesa's former clients.
"This is more bad news," White said. "The only reason the stock's price didn’t crater is because there's no one to sell it to."
Last year, Clearday announced a merger, potentially offering a path for Walesa's clients to cash out their shares when that deal occurs. On Wednesday, a spokesperson for Clearday did not comment about the $6.2 real estate default and judgement.
Clearday, a thinly traded microcap stock with a market value of $14.4 million on Wednesday afternoon, its subsidiaries and Walesa have been involved in litigation regarding the company’s residential community in Naples, according to a February 9 filing with the Securities and Exchange Commission. Clearday had earlier disclosed it had defaulted on a mortgage loan on the Florida properties.
The judgment states the plaintiff is due $6.2 million, plus interest, with a foreclosure sale scheduled for April.
Clearday "is assessing its alternatives regarding this judgement, including raising capital sufficient to redeem the property through a negotiated transaction," according to the filing. "There can be no assurance that any transaction that would result in the company raising sufficient capital or being able to redeem the property will be consummated on acceptable terms or at all."
Six days after it reported the $6.2 million judgment, Clearday said it had amended a loan agreement with an institutional lender and obtained additional proceeds of $100,000, also entering transactions.
Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.
Whichever path you go down, act now while you're still in control.
Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.
“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.
Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.
Streamline your outreach with Aidentified's AI-driven solutions
This season’s market volatility: Positioning for rate relief, income growth and the AI rebound
