SEC Files Complaint against Tennessee Brokerage Firm President and CEO for Allegations of Misappropriating $5.7 Million for Personal UseMonday, January 7, 2019
On December 26, 2018, the Securities and Exchange Commission (SEC) Division of Enforcement filed an Order Instituting Administrative Proceedings against John Sherman Jumper, resident of Eads, Tennessee and a former registered representative and co-owner of Alluvion Investments, LLC, for allegedly misappropriating millions from an employee pension plan for personal use.
According to the Order, Jumper served as the CEO, President, and part owner of Alluvion Securities from September 2007 to February 2017. The SEC complaint alleges that during this time, Jumper misappropriated approximately $5.7 million from an employee pension plan by forging documents to falsely show that he had authority over the plan. Jumper allegedly used the funds for personal expenses and investments, including using funds as capital for other business ventures.
On November 1, 2018, a final judgement was entered against Jumper enjoining him from future violations of relevant securities industry rules. The SEC deemed it appropriate and in the public interest to institute administrative proceedings to determine whether the allegations in the complaint are true and what, if any, remedial action is appropriate, including a suspension or bar from participating in any offering of penny stock.
Many times, brokerage firms can be held liable if they failed to supervise a broker who committed misconduct while registered at their firm. If you lost money due to John Sherman Jumper’s alleged scheme, you may be able to recover from him or his brokerage firm, Alluvion Investments, LLC. Call us (1-877-410-8172) for a free, no obligation consultation. We have over 18 years of experience fighting for victims of broker misconduct and investment fraud.