Barred Financial Advisor Is Sentenced in Alleged $8.6M Investment Fraud

Former Northwestern Mutual Investment Services broker John Jay Kersey was permanently barred by FINRA and sentenced to five years in prison after pleading guilty to an $8.6 million wire fraud and misappropriation scheme. In response, the law firm Shepherd Smith Edwards and Kantas is offering free case assessments to help affected investors explore legal action for financial recovery against Kersey or his former employer.

Shepherd Smith Edwards and Kantas Broker Misappropriation Attorneys (investorlawyers.com) are offering a free case assessment to former customers of convicted ex- Northwestern Mutual Investment Services registered representative John Jay Kersey. He was recently sentenced to five years in federal prison after he pleaded guilty to wire fraud involving an alleged $8.6M investor scam.

If you are wondering whether your investment losses may warrant grounds for a legal claim for financial recovery against Kersey and/or Northwestern Mutual Investment Services, contact us today to explore your legal options.

What Are the Fraud Allegations Against Ex-Stockbroker John Jay Kersey?

• Federal prosecutors accused him of persuading clients to move money from legitimate investments into other supposed opportunities.
• They contend that Kersey misused investors’ funds for his own expenses.
• He allegedly generated falsified documents, including account statements.

John Jay Kersey pleaded guilty to wire fraud and was sentenced to five years in federal prison.

According to John Jay Kersey’s BrokerCheck CRD, he worked 37 years in the industry, including 22 years with Northwestern Mutual Investment Services. He was permanently barred by the Financial Industry Regulatory Authority (FINRA) in 2023. There have been at least 13 customer disputes already filed, most of which have been settled for six or seven figures—with one still pending.

What Is Broker Misappropriation?

This is when a financial advisor takes a customer’s money without authorization. This may involve:

• Unauthorized withdrawals.
• Transferring funds from a customer’s brokerage account into the broker’s own account.
• Involving investors in unapproved or bogus investments that were not authorized by the brokerage firm and then stealing their money.
• Running a Ponzi scam or some other type of investment scheme and stealing money from brokerage customers.

Signs of possible financial advisor theft: 

• Your financial advisor asks you to take money out of your account, including writing checks directly to them.
• Your account balances don’t make sense in regard to the supposed activity in your account.
• You are getting questionable-looking account statements or no account statements at all.
• Your financial advisor asks to borrow money from you.

I’m an Investor Who Was the Victim of Stockbroker Misappropriation. How Can I Get My Money Back?

You may be able to pursue damages from your financial advisor and/or their broker-dealer. Even if the brokerage firm had no idea that their investor was stealing your money and/or running some type of investor scam, you may be able to sue them for a failure to supervise, including neglecting to prevent, detect, or stop the financial advisor theft from happening.

But first, you will have to speak with one of our seasoned broker misappropriation attorneys so that we can help you assess whether you have grounds for an investment loss recovery case.

Suing your broker for damages can be difficult. You will want to work with a trusted securities law firm that knows what they are doing and how to maximize your chances for a full recovery.

For decades, Shepherd Smith Edwards and Kantas Broker Misappropriation Attorneys have been fighting for investors who have been the victims of all kinds of broker misconduct. We have secured awards or settlements for most of our clients.

 Are You Wondering What Legal Action To Take Over Your Broker Fraud Losses?

Call (800) 259-9010 or contact us online today to schedule your free case assessment.