Registered Representative, John Cherry III, New York, NY CRD # 1891720, has been barred by FINRA and ordered to pay $174,000, plus prejudgment interest, in restitution to customers, plus $300,000 in disgorgement.
Allegedly, Cherry converted funds from his member firm customers for his own personal use without the customers’ authorization.
FINRA’s findings stated that allegedly Cherry deposited the funds in his family owned business and used the money to purchase a home. These were customers’ funds intended for investing in securities. Cherry hid from his customers what he had done with their money and made it appear that they were earning returns on securities investments. Cherry occasionally made payments in different amounts from his own personal bank account and business accounts to the customers. Cherry eventually stopped making payments, and he gave the customers excuses for ending the payments. Cherry made it appear that the money was locked into a third-party investment out of his control.
FINRA’s decision was appealed to the NAC and the sanctions are not in effect pending the review.
FINRA Case #2011026935101
John Cherry III, according to FINRA’s BrokerCheck was previously registered with the following FINRA firm:
WORLD GROUP SECURITIES, INC. (CRD# 114473) – NEW YORK, NY
04/2005 – 04/2011
This ends FINRA’s information.
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