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Written by 6:08 pm Blog, Securities Fraud Articles

Chicago Stockbroker Barred

According to Onwallstreet.com, the Financial Industry Regulatory Authority (FINRA) recently barred a Chicago stockbroker who allegedly misappropriated $1 million from his clients’ accounts. Since 2006, Eric William Johnson allegedly forged the brokerage firms principals signature in order to make as many as 60 transfers from clients accounts to his personal accounts. To complete the transactions, Johnson allegedly had to fake the signatures of the brokerage firm’s principal and notary.

Johnson was fired in September when the firm uncovered the misconduct. In a statement, according to Onwallstreet.com, the brokerage firm said that this was an isolated incident.

Brokerage firms have a responsibility to adequately monitor the conduct and transactions of their brokers. When brokers, like Johnson, allegedly steal from clients and violate securities laws or FINRA’s regulations, the firm may be liable for negligent supervision and responsible for investment losses.

According to Johnson’s BrokerCheck report he was working with Redridge Securities from 03/1999 – 09/2014. He previously worked in Florida with Program Trading Corp from 04/1996 – 06/1999 and Stein Shore Securities from 11/1993 – 05/1996.

If you are concerned about investments you made with Eric William Johnson and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (312) 238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.

Tags: , , , , , , , , , Last modified: July 17, 2015