Can I recover losses from investments with former Royal Alliance Associates, Inc. broker John Swon IV (CRD# 5591686)? Swon was registered with Royal Alliance Associates, Inc. (Focus Financial) in Bloomington, Minnesota from 2012 to 2021, when he was terminated regarding “the representative violated the firm’s policies regarding disclosure and approval of outside business activities.”
In July 2021, FINRA barred Swon “consented to the sanction and to the entry of findings that he refused to produce information and documents requested by FINRA in connection with its investigation concerning allegations in a customer complaint that he misappropriated funds. The findings stated that this matter originated from a Uniform Termination Notice for Securities Industry Registration (Form U5) that Swon’s member firm filed noting that he violated its policies regarding disclosure and approval of outside business activities (OBAs).”
Swon has been the subject of one customer complaint, according to his CRD report:
April 2021. “Client alleges that the representative “misappropriated or otherwise mismanaged funds entrusted to him” as an investment advisory representative of Focus Financial Network Inc.” The customer is seeking $110,000 in damages and the case is currently pending.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Royal Alliance Associates, Inc. may be liable for investment or other losses suffered by Swon’s customers.
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