Investigating Investment Losses with Farmer’s Financial Solutions Advisor Justin Funakura
The White Law Group is investigating potential securities claims involving financial advisor Justin Funakura of Bakersfield, California.
FINRA, the securities regulator, reportedly suspended financial advisor Justin Funakura from working in the securities industry as of March 3rd, 2025.
Without admitting or denying FINRA’s findings, Funakura reportedly consented to the sanctions for allegedly participating in private securities transactions without notifying or obtaining approval from his member firm.
Crypto Investment
He allegedly solicited $120,000 from investors—including a firm customer—for promissory notes tied to a company claiming to engage in crypto asset mining and investments. Funakura reportedly introduced the opportunity, shared investment details, and facilitated transactions, earning a $4,000 commission.
The company reportedly later defaulted, and Illinois regulators issued a prohibition order for securities fraud. Funakura also reportedly falsely denied such outside activity on compliance questionnaires. As part of a settlement, he agreed to a $10,000 fine, $4,000 disgorgement, and a six-month suspension from all registration capacities starting March 3, 2025.
Selling Away
This case involving Justin Funakura is a classic example of “selling away,” a violation that occurs when a registered representative engages in private securities transactions without their firm’s knowledge or approval. Funakura allegedly solicited $120,000 from investors—including a firm customer—for promissory notes tied to a crypto-related company, bypassing his firm’s oversight. He reportedly facilitated these investments, provided details about the offering, and earned a $4,000 commission, all without disclosure. The firm was left exposed when the issuer defaulted and was later found to have committed fraud.
FINRA BrokerCheck: Justin Funakura
According to his FINRA BrokerCheck profile, Justin Funakura (# CRD 5718194) was reportedly registered with FARMERS FINANCIAL SOLUTIONS, LLC (CRD#:103863) from 10/21/2009 – 10/23/2023 in Bakersfield, CA. He was reportedly discharged on 10/23/23 after he “Failed to notify FFS in writing of proposed private securities transactions (PSTs) prior to participating in activity.”
Failure to Supervise
When financial professionals recommend investments, they are supposed to act in their clients’ best interests. But sometimes, that doesn’t happen.
All broker-dealers have a responsibility to adequately supervise their advisors. They must ensure they have procedures and systems in place to detect broker misconduct. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
Class Action Lawsuit vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class action lawsuits as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
Justin Funakura: FINRA Lawsuits
If you have suffered investment losses with Justin Funakura, the securities attorneys at the White Law Group may be able to help you by filing a FINRA lawsuit. Please call our offices at (888) 637-5510 for a free consultation. We take cases in all 50 states including California.
National Securities Attorneys
The White Law Group, LLC is a national law firm in securities fraud, securities arbitration, investor protection, and securities regulation and compliance. With offices in Chicago, Illinois and Seattle, Washington, the firm is dedicated to assisting investors across all 50 states with claims against their brokerage firms. Since its founding in 2010, The White Law Group has handled over 800 FINRA arbitration cases.
Last modified: May 7, 2025
