John Cherry, Cherry Group — Customer Fund Conversion, Fraud and Undisclosed Business Activities Charges

stockbroker fraud attorneyJohn 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 Wolf Investment Rights Attorneys Often Represent Investors

The Peiffer 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 Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.

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In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.