John Sherman Jumper of Memphis Tennessee a stockbroker formerly registered with Alluvion Securities LLC is the subject of a Securities and Exchange Commission (SEC) Order Instituting Administrative Proceedings Pursuant to Securities Exchange Act of 1934 Section 15(b) and Investment Advisers Act Section 203(f) in which SEC is considering barring Jumper from being a securities broker or investment advisor or otherwise associating with securities firms and investment advisories supported in part by SEC’s accusations of Jumper’s misappropriation of funds. In the Matter of John Sherman Jumper Administrative Proceeding File No. 3-18960 (Dec. 26, 2018).
The Order noted that SEC obtained a final judgment against Jumper on November 1, 2018. The judgment enjoined Jumper from committing potential violations of Securities Exchange Act of 1934 Section 10(b) and Securities Act of 1933 Section 17(a). Civil Action No. 2:18-CV-02259-TLP-tmp (W.D. Tenn). SEC alleged that from March of 2015 to February of 2016, a total of $5,700,000.00 in funds belonging to a pension plan had been misappropriated by Jumper. Supposedly, documents including a Board of Directors resolution had been forged by Jumper which enabled him to unlawfully control the funds of the pension.
SEC alleged that once the funds were in Jumper’s control, he reportedly invested the proceeds for his benefit, funded entities that he had an ownership stake in, or paid off his personal bills. The Complaint also stated that Jumper directed funds to a business which, in turn, heavily compensated a securities broker dealer co-owned by Jumper. In addition to Jumper being permanently enjoined, he was disgorged of $5,700,000.00 which reflected the profits generated by Jumper from his alleged scheme.
Jumper has additionally been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to cooperate in a FINRA investigation into allegations of Jumper’s misappropriation of funds from the pension. Letter of Acceptance Waiver and Consent No. 2017052704401 (Feb. 3, 2017). According to the AWC, Jumper was instructed to appear before FINRA personnel on January 27, 2017 to provide recorded testimony. Jumper reportedly attended; however, he was uncooperative with the regulator. FINRA found that Jumper failed to fully testify for FINRA. Indeed, Jumper refused to cooperate any further in the investigation. FINRA found Jumper’s conduct to be violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure further confirms that Jumper is facing criminal charges for his activities. Particularly, Jumper is charged with three counts of theft and embezzlement; five counts of making false statements or concealing information with respect to the records of the pension plan; and four counts of wire fraud. Case No. 18-cr-128 (M.D. Pa.).
Jumper’s registration with Alluvion Securities LLC was terminated on February 3, 2017.
