As a financial analyst and writer, I’m delving into the concerning situation of securities broker John Jay Kersey [CRD: 1480524]. Based in Cincinnati, Ohio, Kersey has been at the center of multiple investor disputes and a FINRA sanction. His tenure at Northwestern Mutual Investment Services LLC, from June 8, 2001, until June 23, 2023, has been marked by controversy. Let’s take a closer look at the issues surrounding John Kersey’s professional conduct.
FINRA’s Regulatory Action Against Kersey for Non-Compliance
John Kersey fell from the regulatory ladder when FINRA took action against him on November 10, 2023, with Case No. 2023079099601. The reason? Kersey ignored requests for information from FINRA, leading to a suspension that began on December 4, 2023. He didn’t contest the suspension in the given three months, so FINRA decided to bar him permanently on February 13, 2024.
Kersey’s Alleged Misrepresentation Troubles with Clients
Questions about Kersey’s actions during his time at Northwestern Mutual Investment Services LLC have emerged. A client complaint on October 5, 2023, alleged that Kersey misled them in August 2018, convincing them that their money was put into an education fund and another account—claims the firm later denied. To resolve the matter, a settlement was reached on November 27, 2023, compensating the client with $97,116.68.
Accusations of Misusing Investor Funds Against Kersey
The challenges for Kersey didn’t stop there. Another accusation pointed to financial wrongdoing, with a client stating that from 2012 to 2017, Kersey persuaded them to write personal checks, claiming they would be deposited in a firm-held trust account. However, they discovered no such account existed, sparking allegations that Kersey used the money for personal investments. This issue was settled with a substantial payment of $4,061,288.21 on January 22, 2024.
Other clients have also claimed that Kersey tricked them into believing their investments were in fixed annuities or certificates of deposit, none of which were on the firm’s records. These misrepresentation claims led to settlements ranging from $660,593 to $915,079.
Moreover, it was disclosed that Kersey may have used another client’s money for an investment in a fixed income account in December 2017, resulting in a settlement payment of $479,110 on September 8, 2023.
If you’ve suffered losses due to the actions of securities broker John Kersey, remember that “The investor’s chief problem—and even his worst enemy—is likely to be himself,” as famously said by Benjamin Graham. You’re not alone; many have been trapped by questionable sales practices. Thankfully, you have options for pursuing recovery of your losses. Despite the complexities of financial misrepresentation and communication breakdowns, there are processes in place to help.
As Warren Buffett once quipped, “A public-opinion poll is no substitute for thought.” It’s crucial to educate oneself on the potential risks associated with financial advisors. Shockingly, a study found that over one in ten financial advisors has been disciplined for misconduct. The true cost of a bad financial advisor can be significant, so always investigate their history and check their FINRA CRD number for peace of mind.
