Broker, Jeremy Johnson, Formerly of Torch Securities, LLC, Barred by FINRA – Murrieta, CA

The Financial Industry Regulatory Authority (“FINRA”) has barred broker Jeremy Taylor Johnson from the securities industry. FINRA expelled Mr. Johnson from the brokerage industry for refusing to cooperate with a FINRA investigation into the suitability and potential misrepresentations and omissions related to Johnson’s offer and sale of two securities offerings while associated with Torch Securities, LLC.

Mr. Johnson entered the securities industry in 2019 when he associated with Torch Securities, LLC (“Torch Securities”) and registered with FINRA as a Private Securities Offerings. His employment ended in April 2021.

Securities and Exchange Commission Settlement

In 2021, Mr. Johnson and the Securities and Exchange Commission (“SEC”) entered into a settlement agreement to resolve allegations involving material misrepresentations and misappropriate of investor funds in violation of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) of the Exchange Act, and Rule 10b-5. According to FINRA, as part of the settlement, Mr. Johnson was barred from association with any broker, dealer, investment advisor, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization; and barred from participating in any offering of a penny stock.

State of California Cease and Desist

In February 2019, the State of California Business, Consumer Services, and Housing Agency Department of Business Oversight sought a Cease-and-Desist order against Mr. Johnson and the following entities: Green Bud Initiatives, LLC; Smart Initiatives, LLC; Valley View Enterprise, LLC; Target Equity, LLC; and GPA Enterprises, LLC. The California regulator alleged that beginning on or about September 2017, Green Bud Initiatives and Jeremy Johnson offered and sold securities in the State of California to members of the public in the form of limited liability company membership units in Smart Initiatives, Valley View Enterprises, Target Equity, and GPA Enterprises without qualification (under Corporate Securities Law of 1968, Corp Cod Section 25000 et seq) or exemption from qualification (under Regulation D, Rule 506).

According to Mr. Johnson’s public disclosure report, the final Desist and Refrain Order was issued on February 4, 2019. The matter remained under investigation by the CA Department of Business Oversight). The Desist and Refrain Order restricted future sales of certain unregistered securities.

FINRA Letter of Acceptance, Waiver, and Consent No. 2019062311701

Jeremy Johnson and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on March 26, 2021, after Mr. Johnson refused to provide on-the-record testimony in connection with FINRA’s investigation into the suitability and potential misrepresentations and omissions related to Johnson’s offer and sale of two securities offerings while associated with Torch Securities, LLC.

On February 12, 2021, in connection with FINRA’s investigation, FINRA issued a request for on-the-record testimony. On February 17, 2021, Mr. Johnson, through counsel, refused to testify at any time.

By refusing to appear for testimony as requested pursuant to FINRA Rule 8210, Mr. Johnson violated FINRA Rules 8210 and 2010. Accordingly, FINRA barred him from associating with any broker-dealer in all capacities.

Torch Securities, LLC – Supervisory Duties

Brokerage firms like Torch Securities, LLC must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as suitable investment recommendations, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise its financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.

How to Recover Financial Losses or Obtain a Free Consultation

If you have lost money investing with Jeremy Johnson or Torch Securities, LLC, contact New York securities arbitration attorney August Iorio of Iorio Law PLLC. August Iorio can be reached at info@iorio.law or toll-free at (646) 330-4624 for a free and confidential review of your legal rights.

About Iorio Law PLLC

Iorio Law PLLC is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 15 years of experience as securities arbitration lawyers and have helped investors recover investment losses in over 800 cases. The firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

This blog was published by August Iorio when he was a Partner at his previous firm and has been updated to reflect Iorio Law PLLC’s new contact information. To evaluate any potential claims, contact securities arbitration lawyer August Iorio for a free consultation contact Iorio Law PLLC at info@iorio.law or (646) 330-4624.