Written by The White Law Group• March 15, 2022• 6:29 pm• Blog, Current Investigations

Forrest Jones, Merrill Lynch, Barred from Securities Industry

Forrest Jones, Merrill Lynch Broker, Barred from Securities Industry, featured by top securities fraud attorneys, the White Law Group

SEC Charges Financial Advisor Forrest Jones with Defrauding Investors

According to the Financial Industry Regulatory Authority (FINRA), the regulator has barred financial advisor Forrest Jones (CRD #4880765) as of February 28, 2022 after he allegedly failed to request termination of his suspension within three months of the date of the Notice of Suspension.

According to his broker report, Jones is allegedly the subject of a complaint filed by the Securities and Exchange Commission in May 2021 alleging that Jones, Knight Nguyen Investments along with two others purportedly raised at least $3.7 million in a scheme to invest funds from advisory clients and retail investors in at least five fraudulent securities offerings.

Jones and the other defendants allegedly “lured” advisory clients most of whom were “unsophisticated,” with promises of high returns from secure investments, but then purportedly recommended and sold extremely risky investments. Some of these allegedly risky investments were purportedly related to fraudulent companies that, in most cases, were owned, controlled, or associated with the other two defendants, according to the complaint.

Forrest Jones allegedly made numerous materially false and misleading statements and omissions in connection with the alleged scheme, including misstatements and omissions about the safety and security of the recommended investments, the returns that clients and investors could expect to receive, and the assets and financial condition of the companies issuing the investments, according to the complaint.

According to the SEC’s complaint, the five allegedly high-risk issuers include a Gold Company, a Consulting Company, a Biosciences Company, a Graphic Tools Company, and a Vacation Company. Jones was reportedly associated with a registered broker-dealer not affiliated with KNI for a portion of the Relevant Period.

Forrest Jones was reportedly affiliated with the following firms during his career, among others, according to FINRA:

12/06/2018 – 11/10/2020, MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD#:7691), CONROE, TX,

05/01/2018 – 11/28/2018, FORTUNE FINANCIAL SERVICES, INC. (CRD#:42150), Montgomery, TX

03/29/2016 – 02/14/2017, MCNALLY FINANCIAL SERVICES CORPORATION (CRD#:121196), The Woodlands, TX

08/25/2014 – 02/26/2016, METLIFE SECURITIES INC. (CRD#:14251), HOUSTON, TX

04/15/2014 – 08/26/2014, NEXT FINANCIAL GROUP, INC. (CRD#:46214), The Woodlands, TX

11/02/2011 – 04/16/2014, MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD#:7691), THE WOODLANDS, TX

Merrill Lynch reportedly discharged Jones in October 2020 for “Loss of management confidence resulting from a regulatory investigation and conduct including failure to disclose an outside business activity.” Jones reportedly has 1 complaint filed against him for allegations of unsuitable investments, according to his broker profile.

Potential Lawsuits to Recover Financial Losses

The White Law Group is investigating potential securities fraud lawsuits regarding the liability that Forrest Jones’ employers may have for failure to properly supervise him.

When brokers violate securities laws, such as making unauthorized transactions or unsuitable investments, 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.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors in FINRA arbitration claims in all 50 states including Texas. Our attorneys have recovered millions of dollars from many brokerage firms in the past.