John L. Shockey—Private Securities Transactions without Providing Prior Written Notice

investors rights attorneysJohn L. Shokey Allegedly Engaged in Private Securities Transactions without Prior Written Notice from Merrill Lynch, Pierce, Fenner& Smith, Inc.

John L. Shokey allegedly participated in private securities transactions without providing prior written notice to his firm, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC).

Shokey, the AWC further alleges, participated in private securities transactions with 24 individuals, six of whom were customers of his broker dealer, Merrill Lynch, Pierce, Fenner& Smith, Inc. (MLCO), the AWC notes.

Said customers allegedly purchased 101,650 shares of MIH (Miami international Holdings, Inc. – the parent holding company of the MIAX Options Exchange) for approximately $633,750, the AWC reports.

Shokey Suspended and Fined $15,000 and Ordered Disgorgement in the Amount of $70,070 for Allegedly Participating in Private Securities Transactions without Providing Prior Written Notice to MLCO

John L. Shockey, who resigned from MLCO in February 2014 while under review for facilitating private securities transactions and engaging in an outside business activity, has been fined $15,000 by FINRA for allegedly participating in private securities transactions without providing prior written notice to his firm, according to the AWC.

Shokey has also been ordered disgorgement in the amount of $70,070 for allegedly participating in private securities transactions, the AWC notes. Furthermore, regarding MIH, at the time of the transactions, the shares of MIH were not registered and no exemption from its registration was applied, the AWC reports.

It is also important to note that no allegation is being made against MIH, and that, according to the AWC, John L. Shockey neither admitted nor denied the FINRA findings.

The Peiffer Rosca Wolf Securities Lawyers Often Assist Investors

The Peiffer Rosca Wolf securities lawyers assist investors who lose money as a result of brokers engaging in private securities transactions.  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 brokers conducting undisclosed outside business activities are encouraged to contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1163 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


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.