The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker John Krohn. According to his publicly available FINRA BrokerCheck report, John Krohn is the subject of a pending customer dispute.
John Krohn was an Iowa based securities broker. He worked in the securities industry for twenty years. He spent his entire career registered with Principal Securities. He is no longer working as a registered securities broker in any fashion.
In February 2019, customers alleged that John Krohn solicited them to invest large amounts of money into privately traded securities outside the scope of his member firm. These securities were owned and managed in part by Krohn himself. The customers are seeking $28,000,000 in damages.
According to FINRA, John Krohn failed to notify his member firm that he was participating in these private securities transactions. Because of these alleged actions, he was fined $10,000 and suspended from acting as a securities broker in any fashion for a period of three months.
What Does This Mean?
Securities brokers like John Krohn are not allowed to engage in private business ventures outside the scope of their member firm without first disclosing their involvement to said member firm. This is because these outside business ventures can create significant conflicts of interest for securities brokers. Brokers might find themselves recommending private investments to member firm customers because they have a private stake in said security, because they are receiving cash incentives from a third party, or simply because of the incredibly high commission they receive at the time the transaction is executed. These motivations can easily be linked to brokers recommending private investments to member firm customers that are highly unsuited for them.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with John Krohn, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.