December 3, 2015
On November 25, 2015, former Commonwealth Financial Network and First Allied Securities, Inc. stockbroker James Michael “Mike” Johnson (CRD# 827560) of Richmond, Virginia entered into a Letter of Acceptance, Waiver and Consent to resolve allegations FINRA made against him regarding violations of securities industry rules.
Mike Johnson consented, without admitting or denying the allegations made against him by FINRA, to a $50,000 fine and two year suspension from associating with any FINRA member firm in all capacities in resolution of FINRA Disciplinary Proceeding No. 2012032080901. FINRA alleged that “[i]n May, June, and November 2010, Johnson made negligent misrepresentations and omissions in connection with securities investments made away from Commonwealth by Firm customers JU and GU, thereby violating FINRA Rule 2010. Johnson also participated in these transactions away from the Firm in violation of NASD Rule 3040 and FINRA Rule 2010. In addition, from November 2006 through March 2012, Johnson exceeded the scope of Commonwealth’s approval of his involvement in one outside business activity (“OBA”) and failed to disclose two other OBA’s in violation of NASD Rules 3030 and 2110 and FINRA Rules 3270 and 2010.” According to FINRA’s allegations, one of the investments at issue with clients JU and GU was an entity called West Virginia Farm Properties, LLC.
According to Johnson’s FINRA BrokerCheck Report, he was permitted to resign from Commonwealth Financial Network on March 30, 2012 amid allegations of “undisclosed OBAs [outside business activities].” He was later discharged from First Allied Securities on October 30, 2013, when the firm claimed that he “violated firm policy by placing trades in a customer account without speaking with the actual customer.”
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