April 2021- Des Moines, IL
According to publicly available records John Krohn (CRD#2722975), a former stockbroker who last worked for Principal Securities, Inc. discloses a regulatory event , 3 pending and 2 prior customer disputes.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In May of 2018, FINRA alleged that Krohn engaged in outside business activities and made personal purchases totaling $7.9 million of private Securities away from his member firm without notifying it about those activities or purchases. The findings stated that his failure to give his firm prior written notice of the outside business activities prevented the firm from considering issues such as whether his outside activities would interfere with his responsibilities to the firm or its customers and whether customers or the public would incorrectly view the activities as part of the firm’s business. The findings also stated that Krohn’s private securities transactions were outside the scope of his employment with the firm and he did not notify his firm about his role in them nor whether he had received or expected to receive selling compensation. Krohn made some of those purchases through the investment company that he owned jointly with a customer. Sanctions ordered were a three month suspension from FINRA and a $10,000 fine against Krohn individually.
In March of 2020, a Principal Securities, Inc. customer filed FINRA case #20-00936 alleging that the firm failed to supervise Krohn’s private securities transactions and dealings with claimants and was liable for Krohn’s misconduct and losses. The alleged damages are $10 million .
In February of 2020, another Principal Securities, Inc. customer filed FINRA case #20-00561 seeking damages of $1.2 million and alleging that Krohn had sold investments not authorized by his member firm.
Earlier , in 2/2019, another Principal Securities customer filed FINRA case 19-520, seeking damages of $28 million alleging that Krohn sought venture capital investments not authorized by his firm.
Krohn was employed by Principal Securities from 3/1996-1/2017.
If you had an account with John Krohn that suffered losses, you may be entitled to collect damages from his prior employer. Call to discuss your options.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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