J K R & Company, Inc.

Date:

August 19, 2020

Type of alert:

FINRA AWC  

J K R & Company, Inc. (JKR), a brokerage firm headquartered in Van Nuys, California, recently consented to sanctions imposed by the Financial Industry Regulatory Authority (FINRA) Department of Enforcement to resolve alleged violations of securities industry rules. JKR has two office branches and employs two registered representatives.

According to a Letter of Acceptance, Waiver and Consent (AWC), FINRA staff discovered during an examination of the firm’s sales practices that JKR failed to detect red flags of suspicious activity in four related accounts between November 2012 and December 2016. Based on conversations with the customer, JKR expected one account to be used to liquidate a penny stock and reinvest in other securities, and the other three accounts would engage in cash and margin transactions in stocks, options, mutual funds, bonds, and annuities, among other forms of securities. However, FINRA staff identified activities that were inconsistent with the expected account activity including: 1) common ownership of multiple accounts without apparent business purpose; 2) unexpected transfer activity, including extensive trading in a penny stock, between related accounts without apparent business purpose; and 3) unexplained, repetitive third-party wire transfers that were inconsistent with expected account activity. Additionally, JKR allegedly failed to detect or investigate that one of the accounts was opened several months after the account holder’s corporate president, who also controlled the account, had been barred by the Securities and Exchange Commission from participating in any offering of penny stocks.

These red flags were identified in JKR’s anti-money laundering (AML) procedures as activities that should be investigated and monitored to determine whether a suspicious activity report (SAR) should have been filed.

Based on the foregoing, JKR violated FINRA Rules 3310(a) and 2010, and without admitting or denying the allegations made against it, JKR consented to a censure and fine totaling $50,000.

Take the next steps to find out if you have a claim:

Step 1.

Talk to an Experienced Attorney Today

Call and speak to one of our attorneys* for a no-cost consultation to discuss your situation, answer your questions, and help you determine the next steps. This call usually takes about 15 minutes, but we are happy to talk to you as long as you would like!

Step 2.

Quick Review of Your Paperwork

If we think you might have a case, we will need to review a few basic documents. If we determine you have a case, then you will have the option to hire us as your attorneys to pursue it.

Step 3.

Signed Attorney/Client Agreement

If you decide to hire us to pursue your case, we will have you sign an attorney-client agreement so we can begin the process of trying to recover your losses.*

*In the vast majority of cases, our agreement is contingent – meaning you won’t owe us any money unless we recover money for you.


Request a Consultation

This site contains attorney advertising. The attorneys at ChapmanAlbin are licensed to practice law in Ohio and Michigan. Any reference to past cases or successes made herein should not be construed as a guarantee of any future outcome. Each client and each client’s case is unique, and no result or outcome is or can ever be guaranteed. The information provided in this website is offered for general information purposes only; it is not offered as and does not constitute legal advice in any way. // Disclaimer