What You Need to Know
- The former Royal Alliance broker refused to provide documents and information FINRA requested.
- A client, alleging funds were misappropriated by the ex-broker, filed a complaint requesting $110,000 in damages.
The Financial Industry Regulatory Authority has barred a former broker at the Advisor Group-owned firm Royal Alliance Associates from associating with any FINRA member firm in all capacities after he refused to provide FINRA with documents and information the industry self-regulator requested while investigating allegations he misappropriated a client’s funds, according to FINRA.
Without admitting or denying FINRA’s findings, John Henry Swon IV signed a FINRA letter of acceptance, waiver and consent on June 10 in which he consented to the imposition of the sanction against him. FINRA signed the letter Tuesday.
“As a matter of policy, we don’t comment on legal or regulatory matters, nor do we publicly discuss professionals no longer affiliated with our firm,” an Advisor Group spokesman told ThinkAdvisor on Wednesday.
Swon became associated with Royal Alliance as a general securities representative in October 2012, according to his report on FINRA’s BrokerCheck website.
On April 16, 2021, the firm terminated Swon’s employment and filed a Form U5 termination notice alleging he “violated the firm’s policies regarding disclosure and approval of outside business activities.”
On that same date, Focus Financial (not to be confused with Focus Financial Partners) terminated Swon’s employment for the same stated reason, according to BrokerCheck. He had been serving as an advisory representative for that firm since October 2012, according to his BrokerCheck report.