• October 23, 2020
• Fortune Financial

Johnathan Freeze (CRD # 2642023) was last registered at Fortune Financial Services, Inc. in Canonsburg, PA. Johnathan Freeze was in the securities industry from 1995 to 2017. Johnathan Freeze’s employment history includes Summit Brokerage, LPL Financial LLC, and Lincoln Financial Advisors Corporation.

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on August 14, 2017, Johnathan Freeze was barred by FINRA. According to the FINRA sanction:

“Without admitting or denying the findings, Freeze consented to the sanction and to the entry of findings that he refused to provide the documents and information in connection with an ongoing investigation relating to his recommendation of variable annuities.”

For a copy of the FINRA sanction, click here

This FINRA Sanction followed a October 2015 sanction suspending  Johnathan Freeze for 10 business days and fining him $5,000 following allegations that
“without admitting or denying the findings, Freeze consented to the sanctions and to the entry of findings that he borrowed $20,000 from his member firm’s customer with whom he had a personal relationship, nevertheless he failed to provide the firm with prior notice of the loan and failed to obtain prior written pre-approval for the loan from the firm. Later, Freeze fully repaid the customer, including interest.”

For a copy of the FINRA sanction, click here

In addition to the above, Johnathan Freeze has been the subject of ten (10) customer complaint disclosure alleging the same or similar sales practice misconduct. The complaint alleged the following:
• June 2019—”Between July and October 2016 Freeze facilitated the authorized liquidation of $175k from clients account to purchase promissory notes.” The alleged damages are $175,000 and the matter remans pending.
• March 2019—”Selling away. Mr. Freeze requested and received funds to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer.” The alleged damages are $84,000 and the matter remains pending.
• March 2019—” Selling away. Mr. Freeze requested and received funds to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer.” The alleged damages are $330,000 and the matter remains pending.
• February 2019—”Selling away. Mr. Freeze requested and received $60104 to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer.” Alleged damages are $118,500 and the matter remains pending.
• February 2019—”Mr. Freeze received $50,000 to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer.” Alleged damages are $75,00 and the matter remains pending.
• February 2019—”Selling away. Mr. Freeze requested and received $300,000 to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer.” Alleged damages are $370,000 and the matter remains pending.
• February 2019—”Selling away. Mr. Freeze received $54,000 to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer.” Alleged damages are $90,000 and the matter remains pending.
• December 2017—”Unsuitable investment, may be promissory notes sold away.” Alleged damages were $165,000. The matter was closed without action.
• October 2017—”Selling away. Mr. Freeze requested and received $30,000 to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer.” Alleged damages are $30,000 and the matter remains pending.

On July 8, 2013, Johnathan Freeze was discharged from his employer (LPL Financial LLC) following allegations that “ACCEPTED LOAN FROM CUSTOMER IN VIOLATION OF FIRM POLICY.”

For a copy of Johnathan Freeze’s CRD, click here

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at mwolper@wolperlawfirm.com.