Erez Law Investigates Northwestern Mutual Investment Services, LLC Financial Advisor Meaghan Johnson
Posted on Saturday, August 25th, 2018 at 9:09 am
Did you lose money investing with former Northwestern Mutual Investment Services, LLC financial advisor Meaghan Johnson (CRD #5754123) who is alleged to engage in unauthorized account changes and client signature forgery? Johnson has been registered with Northwestern Mutual Investment Services, LLC in McLean, Virginia from 2010 until February 2017.
In May 2018, FINRA barred Johnson after she “consented to the sanction and to the entry of findings that she failed to provide FINRA with documents and information, and appear for on-the-record testimony relating to the internal review by her former member firm because a client complaint against Johnson’s joint work partner, alleging forgeries of client signatures, raised questions concerning Johnson’s possible involvement.”
Johnson has been the subject of eight customer complaints in 2017, according to her CRD report:
November 2017. “The customer alleged the representative made unauthorized changes to his non-variable life insurance policies and forged the customer’s signature on forms.” The customer sought $46,808.90 in damages and the case was settled for $290,635.40.
November 2017. “The customers allege that they did not authorize changes or loans to their non-variable life insurance policies. The customers also allege that the representative signed the customers’ names on several forms related to the unauthorized transactions.” The customer is seeking $117,148.60 in damages and the case is currently pending.
June 2017. “The client alleged forgery on a variable annuity distribution form and life insurance documents that resulted in transactions without her knowledge or consent.” The customer sought $5,000 in damages and the case was settled for $470,679.93.
April 2017. “The client alleges that she received unsuitable recommendations from the representative and her joint work partner to take early distributions from her IRA accounts to pay for whole life insurance policies. The client has expressed concerns that she is now without insurance because her NM policies lapsed out of force after the representatives moved to a new Firm. The client brought her concerns to the attention of the Firm when she learned that her external account advisor from Crescent Ridge Capital Partners, who introduced her to the representatives, was convicted of violations of federal laws in connection with his investment business.” The customer sought $5,000 in damages and the case was settled for $102,511.19.
April 2017. “The client alleged Ms. Johnson and her joint work partner facilitated investments in a fund with Crescent Ridge Capital Partners. The individual operating this fund was charged in March 2017 for violations of federal laws in connection with his investment business.” The customer sought $5,000 in damages and the case was settled for $225,000.
March 2017. “Clients alleged the investment strategy for an IRA was not suitable and they were misled about Class C share costs, and were concerned about life insurance premiums being paid from an IRA liquidation. The clients later clarified in a statement to the Registered Representative’s supervisor, that their desired outcome was to get a full refund of all paid life insurance premiums and rescission of their insurance policies.” The customer sought $217,887.73 in damages and the case was settled for $9,603.90.
March 2017. “The client alleged that the Registered Representative caused him harm by providing him with fraudulent information regarding all of his accounts.” The customer sought $5,000 in damages and the case was settled for $43,184.65.
February 2017. “A customer alleged that registered representatives Meaghan Johnson and [customer] defrauded him of $49,696.60 in premium payments on two non-variable life insurance policies because the policies were never delivered.” The customer sought $49,696.60 and the case was settled for $49,687.60.
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, Northwestern Mutual Investment Services, LLC may be liable for investment or other losses suffered by Johnson’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.