Drew Mansfield Johnson of Coon Rapids Minnesota a stockbroker formerly registered with Girard Securities Inc. has been fined $5,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he effected securities transactions away from the firm. Letter of Acceptance Waiver and Consent No. 2015048022101 (Sept. 6, 2017).
According to the AWC, Johnson facilitated securities transactions involving four Girard customers, where those customers lent a privately held company $125,000.00 in return for promises of repayment with interest as well as warrants to buy the private entity’s stock. Johnson apparently took part in the meetings with customers concerning the investment, obtained information concerning the investments at customers’ requests, and helped customers compile the paperwork to consummate the transactions.
The AWC stated that Johnson failed to inform Girard about his involvement with those customers, and never procured the firm’s approval as a result. Moreover, two of the four customers were not provided full repayment of the principal invested with the private entity. FINRA found that Johnson’s conduct was violative of FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 3040.
FINRA Public Disclosure confirms that Johnson has been referenced in three customer initiated investment related disputes pertaining to accusations of Johnson’s wrongdoing during the time that he was employed by Girard Securities, Sammons Securities Company, LLC and Sage Point Financial Inc. For example, a customer initiated investment related civil action involving Johnson’s activities was settled for $50,000.00 in damages based upon allegations that Johnson misrepresented investments to the customer, breached his fiduciary duty and defrauded the customer. Case No. C8-05-4588 (Feb. 24, 2006).
On April 23, 2015, another customer filed an investment related complaint pertaining to Johnson’s activities where the customer alleged that the customer was placed into a money market fund in addition to insurance and variable annuity products that were not suitable for the customer. Then, on May 13, 2016, a customer initiated investment related complaint involving Johnson’s conduct was resolved for $25,000.00 in damages founded on accusations of suitability relating to a bridge loan.
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