John Swon Consents to Fine by State of Minnesota

John Swon (CRD #: 5591686), a broker formerly registered with Royal Alliance Associates, was fined by the State of Minnesota, according to his BrokerCheck record, accessed on February 28, 2023. Read on if you want to know more about his alleged conduct as a broker.

Minnesota State Regulatory Action

On January 30, 2023, the State of Minnesota alleged that John Swon used fraudulent and dishonest practices and “demonstrated untrustworthiness” by fabricating 12 investment account statements and engaging in the misappropriation of more than $100,000 from a nonprofit organization.

John Swon entered a consent agreement with the state. He consented to a fine of $10,000 and the revocation of his registration in Minnesota.

FINRA Rule 2150

FINRA Rule 2150 prohibits brokers from misusing investors’ funds.

FINRA Rule 2020

FINRA Rule 2020 bans the use of fraudulent tactics, like deception or manipulation, as they relate to the purchase and sale of securities.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Bar by FINRA

On July 6, 2021, John Swon consented to the entry of findings that he allegedly refused to provide information and documents requested as part of a FINRA investigation into allegations of misappropriation.

According to a Letter of Acceptance, Waiver & Consent (AWC), FINRA launched an investigation following an investor complaint filed in April 2021 that alleged misappropriation. On May 14, 2021, FINRA allegedly requested John Swon provide information and documents in connection with the investigation. He allegedly stated his refusal to comply on May 27, 2021.

The AWC concluded that this alleged refusal violated FINRA Rules 8210 and 2010.

FINRA Rule 8210

FINRA Rule 8210 requires members to supply records, information, and testimony upon request by FINRA.

Sanctions

John Swon was permanently barred by FINRA starting July 6, 2021.

You can read a copy of the AWC here.

Termination from Royal Alliance Associates

On April 16, 2021, John Swon was fired from Royal Alliance Associates for allegedly violating firm policy with regard to the disclosure and approval of outside business activities.

FINRA Rule 3270

FINRA Rule 3270 requires brokers to inform their firm and receive approval for any business activities they engage in beyond their firm.

Termination from Focus Financial

On April 16, 2021, John Swon was fired from investor advisory firm Focus Financial for allegedly violating the firm’s policies concerning the disclosure and approval of outside business activities.

Investor Dispute

On April 1, 2021, an investor alleged that John Swon engaged in the misappropriation and/or mismanagement of funds in his capacity as a registered investment advisor. The client sought $110,000 in damages and received a settlement of $90,000.

Background Information

John Swon has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

He previously worked for the following firms:

• Royal Alliance Associates (CRD#:23131)
• NYLIFE Securities (CRD#:5167)
• Edward Jones (CRD#:250)
• RBC Capital Markets (CRD#:31194)

Kurta Law Can Help

If you worked with John Swon and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.