Former Northwestern Mutual Advisor Faces Serious Allegations and $12 Million in Settlements
The White Law Group is currently investigating potential FINRA arbitration lawsuits involving John Jay Kersey (CRD#: 1480524), a former financial advisor with Northwestern Mutual Investment Services, LLC in Cincinnati, Ohio.
Serious Allegations and Regulatory Action
According to his FINRA BrokerCheck record, John Jay Kersey was permitted to resign while under internal investigation for allegedly taking money from a client and creating false account documents that overstated investment values. Kersey reportedly admitted to depositing customer funds into an account away from the firm.
On November 10, 2023, FINRA barred Kersey from the securities industry after he failed to respond to regulatory requests for information.
12 Customer Complaints and Over $12 Million in Settlements
Kersey’s broker record shows 12 customer complaints, with alleged damages totaling more than $12 million. Common allegations include:
- Misrepresentation
- Misappropriation of funds
- Unsuitable investment recommendations
In several complaints, clients claim they wrote personal checks to Kersey believing the funds were being invested on their behalf—only to later learn the firm had no record of the transactions.
What Investors Can Do
If you invested with John Jay Kersey or Northwestern Mutual and suffered financial losses, you may have legal options. FINRA provides a dispute resolution forum that allows investors to pursue claims against financial advisors and brokerage firms for misconduct.
Brokerage Firms’ Duty to Supervise
Brokerage firms have a legal obligation to adequately supervise their advisors. Failure to detect or prevent advisor misconduct—such as fraud or unsuitable recommendations—can make the firm liable for losses through FINRA arbitration.
FINRA Arbitration vs. Class Action
Many investors wonder if a class action lawsuit is better than pursuing an individual FINRA arbitration claim. Generally:
- If your losses exceed $100,000, individual arbitration may be more appropriate.
- Class actions are typically better suited for smaller, uniform claims.
Contact The White Law Group
If you lost money investing with John Jay Kersey or believe you may have been a victim of misconduct, contact The White Law Group at (888) 637-5510 for a free consultation. Our firm handles securities fraud cases in all 50 states, including Ohio.
FAQ
1. What is FINRA arbitration and how does it work?
FINRA arbitration is a legal process that allows investors to resolve disputes with financial advisors or brokerage firms without going to court. A panel of neutral arbitrators hears evidence and issues a binding decision.
2. Can I still file a claim if John Kersey has been barred by FINRA?
Yes. Even though Kersey has been barred, you may still be able to pursue a claim against Northwestern Mutual, his former employer, for failure to supervise or negligence.
3. How much does it cost to file a FINRA claim?
Most securities attorneys, including The White Law Group, work on a contingency fee basis, meaning there are no upfront legal fees. You only pay if you recover compensation.
