Prospera Broker John N. Crook Under Investigation After $4.8 Million Complaint Filed

Silver Law Group is investigating Macon, Georgia-based Prospera Financial Services, Inc. (CRD# 10740) broker John N. Crook (CRD# 2715424) after a customer filed a $4.8 million complaint.

According to Crook’s FINRA BrokerCheck report, a customer filed a FINRA arbitration against Crook in August 2016 alleging churning and excessive trading, unauthorized trading, breach of fiduciary duty, fraud and intentional misrepresentation and omission, and negligence.  The complaint alleges $4.8 million in damages.

The $4.8 million claim follows Crook’s termination by Raymond James & Associates, Inc. (CRD# 705).  Raymond James alleged that it had lost confidence in Crook after an internal review into a client complaint during which the Raymond James found that Crook did not respond candidly to a supervisory review of trading activity.

Further, Raymond James found, according to Crook’s BrokerCheck report, did not provide plausible explanations for the trading activity in a client account.

Crook has been employed the entirety of his career in Georgia, with a majority of that time in the city of Macon.

When a customer opens an account with a broker and brokerage firm, the customer can choose whether or not he or she wants to give the broker to trade discretionarily in order to capitalize as quickly as possible on an ever-changing market.  Often times, customers choose to reserve that right and have the final “OK” before a broker facilitates a transaction.

Unauthorized trading is when a broker facilitates a transaction without the permission of the customer in a non-discretionary account.  According to FINRA, it is one of the common investor issues along with misrepresentation, cold-calling, and unsuitability.

Unauthorized discretion is a serious form of broker misconduct.  A broker’s employing firm is responsible for overseeing the broker to prevent such misconduct.  Failure to supervise is a claim made against a brokerage firm in these situations.

FINRA arbitration is a fast, efficient way to recover your lost investment funds due to unauthorized trading.  We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.

If you have invested with John N. Crook and Raymond James & Associates or Prospera Financial Services and have lost money doing so, you may be able to recover some or all of your losses.  Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.

Silver Law Group represents the interests of investors who have been the victims of investment fraud.  If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.