John Harman, Formerly of Berthel Fisher and Royal Alliance, Suspended by FINRA for Violating FINRA Rule 2010

Harman allegedly directed customers to sign blank or incomplete minimum distribution request forms.

The Sonn Law Group is investigating allegations that John Harman violated FINRA Rules. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

John Harmon was suspended from associating with any FINRA member firm in any and all capacities for a period of thirty business days. He was also fined $5,000. 

The FINRA document alleged that while associated with Royal Alliance, Harmon directed two customers to sign blank or incomplete distribution request forms, which he then completed and submitted for processing. By doing so, Harman violated FINRA Rule 2010, which requires “associated persons, in the conduct of their business, to observe high standards of commercial honor and just and equitable principles of trade.”

According to the document, Customers A and B were Harman’s customers at Royal Alliance, and they each had an individual retirement account (“IRA”) at the Firm. During an in-person meeting in August 2018, Harman directed Customers A and B to sign blank or incomplete minimum distribution request forms for their respective IRAs. The distribution request forms were not completed or submitted at that time. Instead, in September 2018, Customers A and B requested their distributions from Harman. Harman then completed the distribution request forms, dated the customers’ signatures using a September date, and submitted the forms for processing. The distributions were sent to Customers A and B, as intended. 

On January 25, 2019, Harman was terminated from Royal Alliance for “failure to cooperate with [an] internal review.” On February 20, 2019, the Firm stated that the internal review was complete and concerned, among other things, “alleged customer signature irregularities.” 

Harman was named in a customer dispute in November 2018 that was settled for over $30,000. The customer claimed service issues and alleged overcharging of advisory fees.

Harman was permitted to resign from Berthel Fisher in May 2016 after an allegation that he failed to report a federal tax lien in a timely manner, in accordance with the Firm policy. 

Contact Us Today

The Sonn Law Group is currently investigating allegations that John Harman violated FINRA Rules. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.