April 19, 2018 Comments (0) Blog, Current Investigations, Securities Fraud

Financial Advisor John Jumper indicted for allegedly embezzling $5.7 million

John Jumper
(Last Updated On: April 19, 2018)

Securities Fraud Investigation – John Jumper – Alluvion Securities

According to the U.S. Attorney’s office, financial advisor John Sherman Jumper (CRD#: 2809649, Memphis, TN) has been indicted by a federal grand jury for allegedly stealing money from a pension fund.

The U.S. Attorney alleges that Jumper, 52, embezzled $5.7 million from the pension benefit plan for employees of Snowshoe Refractories, a fire brick manufacturer in Centre County, Tennessee.

The pension fund included 129 active and retired employees, and Jumper is facing up to 65 years in prison if convicted.

Jumper reportedly, “forged signatures on fraudulent documents that purportedly authorized him to transfer funds from the pension plan on three separate occasions between March 2015 through April 2016,” according to the indictment.

He also allegedly used the money to make loans and investments for the purchases of four businesses and to pay off $1.2 million in personal loan and legal fees.

According to the indictment, Jumper allegedly received a personal interest in the businesses purchased, which also said his securities company received more than $1 million in the sale of one of the companies.

John Jumper was registered with Alluvion Securities in Memphis, Tennessee from September 2007 until February 2017. FINRA barred Jumper from the securities industry on February 3, for allegedly refusing to give complete testimony into “allegations that Jumper misappropriated funds from a pension plan for his personal use and to infuse capital into his member firm.”  The Tennessee Securities Division has also reportedly revoked his registration.

John Jumper was indicted on four counts of wire fraud, three counts of embezzlement from an employee pension benefit plan and five counts of false statements and concealment of facts in pension benefit plan records.

Failure to Supervise

The White Law Group is investigating potential claims regarding the liability that Alluvion Securities may have for failure to properly supervise  John Jumper.

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.

Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

If you suffered losses investing with John Jumper, the securities attorneys of The White Law Group may be able to help. For a free consultation with a securities attorney, please call 888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.

 

 

 

 

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