FINRA Bars Broker John Kersey After Mishandling Funds

John Kersey (John Jay Kersey CRD# 1480524) is a former broker and investment advisor last employed with Northwestern Mutual Investment Services, LLC (CRD# 2881) of Cincinnati, OH. His previous employers include Northwestern Mutual Investment Services, LLC (CRD# 2881) of Milwaukee, WI, Walnut Street Securities, Inc. (CRD# 15840) of El Segundo, CA, and WMA Securities, Inc. (CRD# 32625) of Duluth, GA. He has been in the industry since 1986.

Northwestern allowed Kersey to resign following allegations that he accepted money from a customer intended for investment. Instead, Kersey deposited the money into a non-firm account, and fabricated account statements that overstated the value of the customer’s account with Northwestern. He was under an internal review at the time.

Of his eight disclosures, five are by Kersey’s Northwestern clients filed after his discharge from the firm.

In a claim filed 8/25/2023, the clients alleged that in 2007 and 2008, they gave money to Kersey to invest in a fixed annuity. The firm settled this claim for $660,593.00.
In a claim filed 8/31/2023, the clients allege that they gave money to Kersey in December of 2017 for investment in a fixed income account. The firm settled this claim for $479,110.00.
In a claim filed 9/5/2023, the clients allege that in 2017 and 2018, they gave money to Kersey to invest in a certificate of deposit. The firm settled this claim for $915,079.00.
In a claim filed 9/19/2023, the client alleges that from 2012 through 2017, she gave money to Kersey to deposit in a trust account with the firm. The firm settled this claim for $4,061,288.21.
In a claim filed 10/10/2023, the clients alleges that they gave a sum to Kersey to invest in both an education fund and a different investment account. The firm settled this claim for $97,116.68.

In all five cases, Northwestern has no record of any of these transactions, indicating that the monies handed to Kersey was mishandled and/or misappropriated.

FINRA began an investigation and requested additional information from Kersey, who failed to respond to those requests. Following this, FINRA then sent two suspension letters in November and December of 2023, and Kersey failed to respond to either letter, including requesting termination of suspension. FINRA then permanently barred Kinsey from any association with a FINRA member firm, effective February 13, 2024.

Kersey had only one prior disclosure, dated 11/11/1999, from The National Association Of Securities Dealers (NASD, the predecessor of FINRA). In it, Kersey improperly handled a customer’s application and check, instead of handing them back to the original broker and customer. He was suspended for a month and paid a $7,500 fine, and signed a letter of Acceptance, Waiver & Consent.

Did You Invest With John Kersey?

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