If you were an investor with John Henry Swon IV and suspect irregularities in your portfolio please call 303-300-5022. Consultations are free and confidential.
Swon was previously a broker with Royal Alliance and Focus Financial. In July 2021 the Financial Industry Regulatory Authority (FINRA) the regulator, under the oversight of the SEC, banned Swon from the securities industry. Swon consented to the underlying allegation that he misappropriated funds from the account of an investor.
The settlement was entered into after Swon refused to produce documents in defense of his actions. The ban prevents Swon from ever working in the securities industry in the future.
In June 2021, the employers of Swon, Royal Alliance and Focus, each terminated Swon for inappropriate outside business activity. Brokers are required to disclose all outside business activity to their brokerage firms. This allows the brokerage firms to supervise those outside business activities. The violation of this requirement is often referred to as “selling away.”
The “selling away” rule is very important. The trappings of being affiliated with a brokerage firm gives legitimacy to the investments that the broker sells. Often brokers will use this to their advantage and sell investments that are not approved by their brokerage. The brokers will sell fake investments or unstable investments where they are paid high commissions but no brokerage firm has investigated the financials. Many Ponzi-type scams start with a licensed securities broker “selling away” the investment to those believing the investment had been approved by a brokerage.