Commonwealth Financial Network advisor James Michael Johnson has agreed to a $50,000 fine and a two-year suspension from the securities industry relating to a complaint that he made negligent misrepresentations and omissions to customers in connection with the sale of securities.
According to Johnson’s Letter of Acceptance, Waiver and Consent (“AWC”) with FINRA, Johnson made various negligent misrepresentations and omissions in connection with the sale of interests in West Virginia Farm Properties, L.L.C. (“WVFP”), a company formed to develop rural land into a residential neighborhood in West Virginia. FINRA alleged that Johnson “lacked reasonable basis for believing” that statements that he made to his customers were true and that Johnson omitted several material facts, of which he was aware, that should have been disclosed to his customers.
According to FINRA’s BrokerCheck, Johnson was “permitted to resign” from Commonwealth in March 2012. Johnson subsequently went to work for First Allied Securities, Inc, but he was discharged by First Allied in October 2013 following allegations that he “violated firm policy by placing trades in a customer account without speaking to the actual customer.”
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