Securities broker John Jay Kersey [CRD: 1480524] in Cincinnati, Ohio, is under investigation linked to several allegations and a FINRA sanction. Kersey, who served at Northwestern Mutual Investment Services LLC from June 8, 2001, to June 23, 2023, has a variety of investor disputes filed against him. Here’s the inside scoop on the predicaments surrounding John Kersey.
FINRA Initiates Kersey’s Regulatory Action for Non-Compliance
Fall from grace came upon Kersey when he was slammed with a regulatory action by the Financial Industry Regulatory Authority (FINRA) on November 10, 2023 (Case No. 2023079099601). Why? Kersey, turned a deaf ear towards FINRA’s information requests. Consequently, he bagged a suspension starting December 4, 2023. Kersey failed to challenge the suspension within the allowable three-month window, compelling FINRA to issue an absolute bar against him on February 13, 2024.
Alleged Misrepresentation Gets Kersey in Hot Water With Clients
A sticking point remains around Kersey’s time at Northwestern Mutual Investment Services LLC. A complaint lodged on October 5, 2023, claimed that Kersey deceived a client in August 2018. The client was led to believe that their cash was invested in an education fund and another account – only for the firm to deny any knowledge of such accounts. Following a swift settlement on November 27, 2023, the client received $97,116.68.
Kersey Faces Accusation of Wrongfully Taking Investor Funds
Furthermore, Kersey’s unending woes extended to another client’s complaint, accusing him of financial irregularities. They claimed that between 2012 and 2017, Kersey coaxed them into issuing personal checks, alleging the cash was deposited in a trust account with the firm. Unearthing the ruse, the client found no record of such an account at the firm. The accusation? Kersey pocketed her money for private securities. This story also wound down to a hefty settlement of $4,061,288.21 on January 22, 2024.
Accusations of misrepresentation continue to fly around, with multiple clients claiming Kersey duped them into thinking their money was being invested in various schemes. Some were told their investments were in fixed annuities, others in certificates of deposit – all of which the firm had no trace of. The settlements resulting from these allegations ranged from $660,593 to as high as $915,079.
Moreover, a disclosure by Kersey surfaced suggesting that money from another client was used for investment in a fixed income account in December 2017. This resulted in the firm settling with the client for $479,110 in damages on September 8, 2023.
If you, too, have experienced losses due to the actions of securities broker and financial advisor, John Kersey, you are not alone. Many investors have found themselves in similar binds due to sales practice violations, and there are resources and mechanisms available which can provide relief. Misrepresentation and lack of communication can lead to unprecedented losses, but there are avenues for aid and restitution.