Erez Law Investigating Claims Regarding Disbarred Broker George E. Johnson
Posted on Thursday, March 31st, 2016 at 8:00 am
Erez Law is investigating claims related to George E. Johnson (CRD# 2245802). Johnson was associated with Newport Coast Securities, Inc., in Chicago, IL, from April 2013 until February 2016. Prior to that, Johnson was associated with Meyers Associates, L.P. (November 2011 through May 2013) and Anderson & Strudwick, Inc. (July 2010 to December 2011), both in Chicago. In February 2016, FINRA entered an Order Accepting Settlement Offer pursuant to which Johnson permanently was barred from associated with FINRA member securities firms. See FINRA Case No. 2013035533701.
Johnson’s expulsion from FINRA stems from a 2013 regulatory complaint, in which FINRA alleged that between in May 2012 Johnson manipulated he market for common stock of IceWEB, Inc. (OTCBB: IWEB) by soliciting certain customers to buy, while soliciting other customers to sell, IWEB stock at increasingly higher and artificially inflated prices, frequently effecting matched orders among his own customers. FINRA also alleged that Johnson committed securities violations between July 18, 2012 and August 31, 2012, because he solicited customers to purchase shares of Snap Interactive, Inc. stock (OTCBB: STVI) while failing to disclose that he was simultaneously selling his and his wife’s personal holdings of STVI. In addition, FINRA charged that between February and May 2012, Johnson and Christopher Wynne (CRD# 4055280), Johnson’s supervisor at Meyers Associates, violated securities rules by sending Meyers’ customers third party research and sales materials concerning IWEB that were riddled with misleading, exaggerated and unsupported claims and failed to disclose material information. FINRA further charged that Johnson, Wynne and Joseph Mahalick (CRD # 5563167), a colleague at Meyers Associates, intentionally misidentified the broker of record on five account applications and over 100 order memoranda submitted to Meyers Associates to hide Johnson’s violations of state registration requirements. FINRA further charged that Meyers Associates and Wynne failed to supervise the firm’s Chicago Branch Office in general and Johnson in particular and that Meyers Associates failed to establish and implement AML policies and procedures reasonably expected to detect and cause the reporting, if appropriate, of potentially suspicious activity relating to the manipulative trading of securities.
Johnson recently has been the subject of a customer complaint regarding unsuitable securities, which requests damages of $2.6 million, according to his CRD. In addition, Johnson’s CRD shows six older complaints dating from 1997-2007 and two prior regulatory fines from 2006 and 1994.
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, Newport Coast Securities, Inc., Meyers Associates, or Anderson & Strudwick, Inc., may be liable for investment or other losses suffered by Johnson’s customers.
If you were a client of Newport Coast Securities, Meyers Associates, Anderson & Strudwick, George E. Johnson and have experienced investment losses, financial irregularities, or misrepresentations regarding an annuity, please call us at 888-840-1571 or complete our “contact form.” Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies.