In a recent article from Investment News, it was reported that John Michael Krohn (John Krohn CRD#: 2722975, West Des Moines, Iowa) former broker with Principal Securities Inc. of West Des Moines, Iowa, is facing $39.2 million in legal damages from at least three investors’ complaints that allege John Krohn, engaged in selling away, or offering clients investments that are not approved by the firm. Currently Krohn is not registered with any broker/dealer.
According to FINRA’s BrokerCheck, John Krohn, was registered with Principal Securities from 1996 to 2017. In 2018, Krohn was suspended for three months and paid a fine of $10,000. FINRA alleged that Krohn engaged in outside business activities and made personal purchases of $7.9 million of personal securities without notifying his firm. Krohn has six Disclosures on his FINRA report, five are “Customer Disputes.”
According to BrokerCheck, available to the public on FINRA’s website, there are three “pending” Customer Disputes. A pending dispute filed in 2019, is requesting $28,000,000.00 in damages following the allegations of, “The claimants assert that John Krohn solicited large investments from them into venture capital companies owned, managed, or controlled at least in part by Krohn.” In 2020, there were two disputes filed that are pending requesting damages of $1,200,000 and $10,000,000. Some of the allegations were, failure to supervise John Krohn‘s private securities transactions, his selling away activities and his outside business activities that resulted in damages to the clients.
According to the InvesetmentNews article, John Krohn is currently the president and CEO of a company named Spotlight Innovation Inc.
If you or a loved one have suffered financial losses due to the actions or recommendations of John Krohn, formerly with Principal Securities Inc. of West Des Moines, Iowa, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee basis and represents our clients nationwide before FINRA.