John Michael Krohn (also known as John Micheal Krohn) of West Des Moines Iowa a stockbroker formerly registered with Principal Securities Inc. is the subject of a customer initiated investment related arbitration claim where the customer sought $10,000,000.00 in damages based upon accusations of Krohn having recommended or sold investments to the customer outside of Principal Securities’ auspices and without the supervision from the securities broker dealer. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-00936 (Mar. 21, 2020).
Krohn has been identified in four more customer initiated investment related disputes containing allegations of his misconduct while employed with Principal Securities. FINRA Public Disclosure reveals that a customer filed an investment related complaint involving Krohn’s conduct in which the customer requested more than $5,000.00 in damages based upon allegations that the customer was unsuitably placed into a variable annuity using individual retirement account funds.
Another customer filed an investment related complaint concerning Krohn’s activities where the customer sought $97,000.00 in damages founded on accusations that Krohn facilitated the customer’s purchase of a private placement while Krohn was employed by Principal Securities. Krohn has also been identified in a customer initiated investment related arbitration claim where the customer sought $28,000,000.00 in damages founded on accusations that the customer had been solicited by Krohn to invest in venture capital companies which were managed or owned by the stockbroker. FINRA Arbitration No. 19-00520 (Feb. 18, 2019).
On February 25, 2020, another customer filed an investment related arbitration claim pertaining to Krohn’s conduct in which the customer requested $1,200,000.00 in damages supported by allegations of Krohn selling away and engaging in outside business activities during the period in which the stockbroker was employed by Principal Securities. FINRA Arbitration No. 20-00561. According to the claim, Krohn took part in private securities transactions involving promissory notes that were not supervised by Principal Securities.
FINRA Public Disclosure also reveals that Krohn has been fined $10,000.00 and suspended for three months from associating with any FINRA member in any capacity based upon consenting to findings of him engaging in unapproved private securities transactions and outside business activities. Letter of Acceptance Waiver and Consent No. 2017052852801 (May 29, 2018).
According to the AWC, Krohn took part in four outside business activities between 2014 and 2017. At least one of those activities involved a customer of the firm. Krohn’s activities had not been disclosed in full to Principal which precluded it from accurately assessing whether his activities posed a problem. Krohn violated FINRA Rules 2010 and 3270 in this regard. FINRA also stated that $7,900,000.00 in securities purchases had been effected by Krohn from 2012 to 2016. The AWC confirmed that the securities transactions were not disclosed to Principal Securities which constituted a violation of FINRA Rules 2010 and 3280.
Krohn’s registration with Principal Securities has been terminated as of January 12, 2017.
