John Krohn (John Michael Krohn CRD#:2722975) is a former registered broker and investment advisor whose last known employer was Principal Securities, Inc. (CRD#:1137) of West Des Moines, IA. He has been in the industry since 1996, when he began at the firm.
Krohn is the subject of three client disputes with similar allegations. They first dispute was filed on 2/25/2019, with allegations that he “solicited large investments from them into venture capital companies owned, managed, or controlled at least in part by Krohn.” The client requests damages of $28,000,000.00.
The second claim, filed on 2/25/2020, alleges that the firm failed to supervise John Krohn, which included selling away and his outside business activities that caused them to suffer losses. This client requests damages of $1,200,000.00.
The third claim was filed on 4/6/2020. This client alleges that the firm failed to supervise Krohn’s dealings with the claimants as well as his outside business activities. As a result, Krohn and the firm are responsible for their financial losses. They request damages totaling $10,000,000.00.
Previously, FINRA investigated Krohn and found that he had been conducting multiple business transactions separate from Principal Securities. This resulted in a three-month suspension from any FINRA member firm, a fine of $10,000, and his signature on an Acceptance, Waiver & Consent (AWC) letter.
The FINRA investigation found that there were two main factors:
- From April 2014 through January 2017, Krohn failed to notify Principal Securities of his involvement with four companies, either as an officer or director. One of these companies was one he co-founded with a wealthy and sophisticated client, which specialized in distressed and startup companies. Even he notified his firm of his other outside business activities, he never mentioned these.
- Krohn made more than 24 securities purchases from ten different companies totaling $7.9 million. Some of these purchases were made through the aforementioned co-owned company. These purchases were outside of the scope of his employment with Principal Securities. Krohn failed to notify the firm of these transactions, what his role was in them, and if he received or would receive any compensation as a result.
Krohn’s suspension lasted from 6/4/2018 through 9/3/2018.
Did You Invest With John Krohn?
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