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Investigations

Broker John Krohn Investigation Related To Spotlight Innovation And Other Investments

Securities LawyersPreviously registered stockbroker John Krohn of West Des Moines, Iowa is currently under investigation by securities lawyers, related to five customer complaints and his reported sales of investments in Spotlight Innovation. At the time of writing, Krohn and his former broker-dealer firm Principal Securities, Inc are being investigated following a a Financial Industry Regulatory Authority (FINRA) report, alleging that Krohn has been improperly soliciting unauthorized investments that resulted in a loss of investor assets. Of the five customer complaints, and the one FINRA regulatory allegation, two of the customer accusations are shown as denied and three are pending on the FINRA Brokercheck Report. In relation to the FINRA regulatory allegation, Krohn has accepted and consented to sanctions and waivers, alongside a financial penalty.

Securities lawyers Alan Rosca and his colleagues are investigating potential claims on behalf of investors who lost money invested with Krohn.

FINRA Sanctioned Krohn for his Involvement in Outside Business Activities

In its regulatory case, FINRA alleged that Krohn was actively and improperly involved in outside business activities, making a total of $7.9 million in personal purchases away from the firm without providing prior written notice. The allegation also reportedly examined the motives surrounding these activities, as the aforementioned transactions were outside the sphere of Krohn’s employment with the firm. He also allegedly failed to inform the firm of his role in the transactions, alongside failing to notify the firm about whether he was expecting to or had already received financial compensation from the sales. The sales were party made via an investing company, which Krohn partially owned with a client, according to FINRA’s allegations. As a result of these findings, Krohn received a three-month suspension from FINRA and a Civil and Administrative Penalty of $10,000.00.

Krohn and his brokerage firm Principal Securities, Inc are accused by former clients of soliciting investments into companies linked to Krohn, failure to oversee private security transactions and selling-away activities.

Krohn’s FINRA Brokercheck report also shows two denied allegations. The first involves investments into private placements while linked to Principal Securities, Inc and the second relates to variable annuity while Krohn was affiliated with Princor Financial Services Corporation. The source for the alleged private placements accusation is Principal Securities, Inc, seeking damages totaling $97,000.00. The source for the second denied activity comes from a broker who represented one of Krohn’s customers, seeking damages worth $5,696.00.

Investors who believe they may have lost money in connection with investments recommended by John Krohn are urged to contact Goldman, Scarlato & Penny securities lawyers Alan Rosca or Paul Scarlato for a free, no-obligation discussion regarding their options.

Investment Loss Recovery LawyersPending Customer Disputes on John Krohn’s FINRA report

In February 2019, a customer filed a complaint against Krohn for soliciting large investments into other companies that he in partially owned, managed, or oversaw. His FINRA Brokercheck report states that the damage amount requested is $28,000,000.00, for punitive damages and interest.

During February 2020, another of Krohn’s customers filed a complaint against him and the firm Principal Securities, Inc, for failing to supervise private security transactions. These transactions are purported to include selling- away activities and outside business activities. Krohn’s FINRA Brokercheck Report shows that the damage amount requested in relation to these actions is $1,200,000.00, and accounts for interest, attorneys’ fees, expert fee’s, forum fee’s and punitive damages.

In March 2020, a former customer filed a complaint against Principal Securities, Inc, in relation to Krohn’s misconduct, which allegedly resulted in a loss of investment for the claimant. Krohn’s FINRA Reports highlights activities associated with private security transactions and dealings with claimants, which the firm failed to supervise satisfactorily. The damages requested stand at $10,000,000.00.

Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.

Did You Have An Investment With John Krohn? Securities Lawyers Investigating 

The securities lawyers team at Goldman Scarlato & Penny PC are investigating activities surrounding Krohn’s alleged sales of investments in Spotlight and other entities. Goldman Scarlato & Penny represent investors who have lost money due to stockbroker misconduct, unsuitable investment recommendations or material misrepresentations or omissions. Goldman Scarlato & Penny PC’s security attorney, Alan Rosca, has assisted thousands of victimized investors around the country and the globe in areas from class action suits to arbitrations.

If you are a previous investor with Krohn or Principal Securities, Inc and are concerned that you may have lost assets or if you wish to inquire regarding your potential financial recovery options, you may contact Alan Rosca or his colleagues for a free, no-obligation discussion about your options. Investors who may have useful information pertaining to Krohn’s activities are also urged to contact Alan Rosca at 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on the webpage.

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent updates regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases. Also, the brokercheck report linked to some of our blogs is the up-to-date version as of the date of posting. Visitors may check the most recent version of each brokercheck report at www.finra.org.

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