Securities Arbitration Lawyer Blog
The Financial Industry Regulatory Authority (“FINRA”) has barred broker Jeremy Taylor Johnson from the securities industry. FINRA expelled Mr. Johnson from the brokerage industry for refusing to cooperate with a FINRA investigation into the suitability and potential misrepresentations and omissions related to Johnson’s offer and sale of two securities offerings while associated with Torch Securities, LLC.
Mr. Johnson entered the securities industry in 2019 when he associated with Torch Securities, LLC (“Torch Securities”) and registered with FINRA as a Private Securities Offerings. His employment ended in April 2021.
Securities and Exchange Commission Settlement
In 2021, Mr. Johnson and the Securities and Exchange Commission (“SEC”) entered into a settlement agreement to resolve allegations involving material misrepresentations and misappropriate of investor funds in violation of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) of the Exchange Act, and Rule 10b-5. According to FINRA, as part of the settlement, Mr. Johnson was barred from association with any broker, dealer, investment advisor, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization; and barred from participating in any offering of a penny stock.
State of California Cease and Desist
In February 2019, the State of California Business, Consumer Services, and Housing Agency Department of Business Oversight sought a Cease-and-Desist order against Mr. Johnson and the following entities: Green Bud Initiatives, LLC; Smart Initiatives, LLC; Valley View Enterprise, LLC; Target Equity, LLC; and GPA Enterprises, LLC. The California regulator alleged that beginning on or about September 2017, Green Bud Initiatives and Jeremy Johnson offered and sold securities in the State of California to members of the public in the form of limited liability company membership units in Smart Initiatives, Valley View Enterprises, Target Equity, and GPA Enterprises without qualification (under Corporate Securities Law of 1968, Corp Cod Section 25000 et seq) or exemption from qualification (under Regulation D, Rule 506).
According to Mr. Johnson’s public disclosure report, the final Desist and Refrain Order was issued on February 4, 2019. The matter remained under investigation by the CA Department of Business Oversight). The Desist and Refrain Order restricted future sales of certain unregistered securities.
FINRA Letter of Acceptance, Waiver, and Consent No. 2019062311701
Jeremy Johnson and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on March 26, 2021, after Mr. Johnson refused to provide on-the-record testimony in connection with FINRA’s investigation into the suitability and potential misrepresentations and omissions related to Johnson’s offer and sale of two securities offerings while associated with Torch Securities, LLC.
On February 12, 2021, in connection with FINRA’s investigation, FINRA issued a request for on-the-record testimony. On February 17, 2021, Mr. Johnson, through counsel, refused to testify at any time.
By refusing to appear for testimony as requested pursuant to FINRA Rule 8210, Mr. Johnson violated FINRA Rules 8210 and 2010. Accordingly, FINRA barred him from associating with any broker-dealer in all capacities.
Torch Securities, LLC – Supervisory Duties
Brokerage firms like Torch Securities, LLC must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as suitable investment recommendations, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise its financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
If you have lost money investing with Jeremy Johnson or Torch Securities, LLC, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.