Johnson was discharged from MML Investors Services on 7/8/2019 after an investigation was launched after allegations of diverting client funds for his own personal use. As diversion sounds like a fancy legal term, it can simply be interpreted as stole or took money that does not belong to him. Unfortunately, claims of stockbroker diversion or improperly taking customer funds is a major problem in the securities industry. Stockbrokers, financial advisors and others know their customers financial situation and can easily discover who can be convinced to give the financial advisor improper access to an account or otherwise convince a client to transfer money that does not belong to the broker.
FINRA Bars Timothy Johnson After Funds Conversion Allegations
FINRA requested information from Johnson, which he failed to provide. The agency then sent two letters of suspension, dated September 9, 2019 and October 4, 2019. On December 12, 2019, Johnson was suspended for three months. After failing to request a termination of his suspension, the agency barred Johnson indefinitely from any association with any FINRA member.
On December 5, 2019, Jeffrey Schriver with the state of Pennsylvania Insurance Department initiated an investigation into Johnson’s “for cause” termination from MML Investors after allegations of his diverting customer funds for his own use. No additional information is available.
Stockbrokers Should Not Take Customer Money For Improper Reasons
Investors should avoid giving their financial advisor access to their accounts or funds. Most stockbrokers do not have custody of your investments and should not ask for access to your account or checkbook. If your investments do not appear on statements, you should know who the custodian of your funds are.
Did You Invest Funds With Timothy Edward Johnson, Jr.?
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you will not owe us until we recover your money for you. Contact us today and let us know how we can help.