UPDATE–Investigation of ERIC WILLIAM JOHNSON and REDRIDGE SECURITIES
Eric William Johnson and RedRidge Securities
Have you lost money in Eric William Johnson from Hinsdale, Illinois? Eric William Johnson was recently barred by FINRA, the Financial Industry Regulatory Authority, for stealing money from his customers’ accounts and depositing the money into his own personal accounts. The Securities and Exchange Commission also brought an emergency action against Eric Johnson on November 5, 2014, alleging that he stole at least $1 million from his clients.
In a recent follow-up, FINRA also brought a regulatory complaint against RedRidge Securities, and RedRidge’s Chief Executive Officer and Chief Compliance Officer, Brent D. Hurt. FINRA alleged that RedRidge Securities and Brent Hurt failed to establish a supervisory system to reasonable supervise Johnson’s wire transfers to third parties. FINRA alleges that this supervisory deficiency enabled Johnson to perpetrate his scheme of stealing money from clients. To settle these claims, RedRidge Securities agreed to pay a $60,000, and Brent Hurt agreed to pay $17,500 and also agreed to be suspended for 6 months in any principal capacity.
Eric William Johnson was a registered representative of RedRidge Securities from 1999 to September 2014 and worked at RedRidge Securities’ Chicago branch office. He was also affiliated with HDB Advisors and HD Brent & Co. Johnson was fired from RedRidge Securities in September 2014 in connection with the theft allegations.
Broker-dealers like RedRidge Securities have a responsibility to adequately supervise all representatives who are registered through their firm, including investments sold by their registered representatives. Broker-dealers also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When broker-dealers fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Our attorneys have represented hundreds of investors who have defrauded by their financial advisor or stockbroker. We have also represented dozens of clients from the Chicago area, and our attorneys are licensed to practice law in both state and federal courts in Illinois. If you have lost money with Eric Johnson, RedRidge Securities, HDB Advisors, or HD Brent & Co. and want to hear about ALL legal options, please visit https://www.israelsneuman.com and go to our CONTACT page or call us at 720-599-3505.
Click to view FINRA AWC: RedRidge FINRA AWC