John Cherry, Cherry Group — Customer Fund Conversion, Fraud and Undisclosed Business Activities Charges
John Cherry Allegedly Engaged in Undisclosed Business Activities
John Cherry allegedly engaged in undisclosed business activities (Cherry Group Unlimited, LLC), according to a recent Complaint filed by FINRA.
Rather than invest his two customers’ money through their brokerage account, Cherry allegedly directed them to wire the money directly to his company, Cherry Group, and, when asked for documents regarding their investments, the customers received e-mail documents from an AOL account stating that they had invested in a “quarterly yielding plan” with an entity called Equitable Investment Strategies, the Complaint further alleges.
What is more, Cherry also made interest distributions for approximately one year for the customers’ investments of about $500,000, the Complaint further notes.
John Cherry Allegedly Used Customer Funds to Buy Florida Home; Ordered to Pay $300,000 in Disgorgement, $138,235.83 in Restitution, and $3,860.71 in Hearing Costs
The meat and potatoes of the FINRA’s allegations was that John Cherry misused and converted customer funds to purchase a dream Florida home titled in his wife’s name, the Complaint alleges. Cherry allegedly then failed to disclose said outside business activities to his firm, World Group Securities, Inc., an affiliate of World Financial Group, Inc., in violation of NASD and FINRA Rules.
After FINRA determined that John Cherry’s actions violated NASD and FINRA Rules, he has been ordered to pay $300,000 in disgorgement, $138,235.83 in restitution, and $3,860.71 in hearing costs, according to the FINRA Complaint.
The Peiffer Rosca Wolf Investment Rights Attorneys Often Represent Investors
The Peiffer Rosca Wolf investment rights attorneys often represent investors who lose money as a result of investment misconduct. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment misconduct may contact the investment rights attorneys at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.