Justin Casey Funakura, of Bakersfield, California, a stockbroker previously registered with Farmers Financial Solutions LLC, has been suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in all capacities for six months and fined $10,000.00 by FINRA because Funakura participated in private securities transactions or “selling away,” without prior notice or approval from Farmers Financial Solutions LLC. Letter of Acceptance, Waiver, and Consent No. 2023080049001 (February 20, 2025).
According to the AWC, between August 2021 and April 2022, while registered with Farmers Financial Solutions LLC, Funakura participated in private securities transactions by soliciting nine investors to invest a total of $120,000.00 in promissory notes issued by a company claiming to operate crypto asset mining and investment programs. One of the investors was a customer of the securities broker dealer.
Funakura’s involvement included introducing investors to the investment opportunity, providing information regarding funds that the company offered, and facilitating their transactions. In return, he received $4,000.00 as a commission. The company later defaulted on the notes, and in October 2022, the State of Illinois Secretary of State, Securities Department filed a complaint against the company. In January 2023, the department issued a Final Order of Prohibition, determining that the company and related individuals committed fraud in the offer and sale of securities.
Additionally, on annual compliance questionnaires for 2021 and 2022, Funakura indicated that he had not engaged in private securities transactions or received compensation for transactions outside of the securities broker dealer. By participating in these private securities transactions without written notice or approval, Funakura violated FINRA Rules 3280 and 2010.
Funakura was associated with Farmers Financial Solutions LLC in Bakersfield, California, from October 21, 2009, to October 23, 2023. Funakura was discharged by the securities broker dealer on October 17, 2023, based upon allegations that he failed to give written notice of proposed private securities transactions prior to participating in the activity.
