Northwestern Mutual Investigation 

Northwestern Mutual Investment Services Lawsuit | Broker Misconduct & Regulatory Actions

The White Law Group is investigating potential FINRA arbitration claims involving Northwestern Mutual Investment Services due to allegations of broker misconduct and failure to supervise.

Northwestern Mutual Investment Services, LLC (CRD#: 2881 / SEC#: 801-8095, 8-1408), based in Milwaukee, Wisconsin, is a dual-registered broker-dealer and investment adviser. According to FINRA BrokerCheck, the firm has 10 regulatory actions on its record.

Northwestern Mutual – Regulatory News & Sanctions

February 9, 2024 – SEC Sanction for Recordkeeping Failures: The SEC fined Northwestern Mutual $985,000 for failing to preserve electronic communications made through unauthorized messaging platforms. The firm agreed to hire a compliance consultant and enhance internal controls.

August 21, 2023 – New Hampshire Sanction: Northwestern Mutual was fined $175,000 and issued a cease-and-desist order after agents in its Manchester branch sent unsupervised marketing emails in violation of policy and state rules.

Broker Misconduct & FINRA Bars

• Michael Gravelyn (CRD#: 6569005) – Barred May 2024 for refusing to cooperate in a FINRA investigation involving forged signatures and unauthorized bank drafts. Gravelyn has 16 disclosures.
• John Kersey (CRD#: 1480524) – Barred February 2024. Allegations include misappropriation, false documentation, and accepting personal checks under false pretenses. Has 17 disclosures and multiple large settlements.
• Joseph Cannon (CRD#: 6341199) – Barred March 2025 for refusing to testify about questionable transfers between his personal and client accounts. Faces a $2.36 million pending complaint.
• Cody Keller (CRD#: 6669454) – Barred March 2025 for failing to provide documents involving undisclosed outside business activities and attempting to settle a client complaint privately.

Failure to Supervise – Historical Sanctions

• June 2020: FINRA fined Northwestern Mutual $350,000 for failing to supervise broker Sampson Pearson, who stole $570,000 from client annuities. Pearson was later convicted of mail fraud and identity theft.
• September 2009: The firm was fined $200,000 and ordered to repurchase $103 million in auction rate securities (ARS) after the 2008 market collapse.

Customer Complaints & Investment Fraud Allegations

• November 2021: Advisor Roderick Whited was barred for converting $44,170 in charitable donations for personal use.
• September 2021: A former advisor faced felony charges for theft and sales fraud and was barred by the SEC.
• May 2019: A Connecticut advisor allegedly converted $100,000 from a nonprofit while serving as treasurer.

Recovering Losses through FINRA Arbitration

If you’ve experienced losses due to misconduct by a Northwestern Mutual advisor, you may be eligible to file a FINRA arbitration claim. Common causes include:

• Unauthorized transactions
• Fraudulent annuity sales
• Unsuitable investment recommendations
• Misrepresentation or omission of risks
• Selling away or undisclosed outside business activities

The White Law Group has handled over 800 FINRA arbitration claims nationwide. We help investors pursue claims against broker-dealers for failure to supervise and other violations.

Free Consultation with a Securities Attorney

If you invested with Northwestern Mutual Investment Services and suspect fraud or mismanagement, call The White Law Group at 888-637-5510 for a free consultation.

Our firm, with offices in Chicago, IL and Seattle, WA, represents investors nationwide in FINRA arbitration claims. For more information, visit whitesecuritieslaw.com.

FAQs : Northwestern Mutual

1. Can I sue Northwestern Mutual for investment losses?

You may be able to file a FINRA arbitration claim if losses resulted from misconduct or lack of supervision by the firm.

2. What types of misconduct has Northwestern Mutual been accused of?

Allegations include forgery, misappropriation of funds, unauthorized trading, false documents, and improper insurance and securities sales.

3. How do I file a FINRA arbitration claim?

Contact a securities attorney to evaluate your case, collect documentation, and file a claim with FINRA. The White Law Group offers free consultations to discuss your options.