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Former NY Life Securities Financial Advisor, Judith Johnston, Barred From The Industry By FINRA

Judith A Johnston is a former Financial Advisor at NY Life Securities in Frisco, TX.  Judith Johnston has been in the securities industry since 2009. 

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on March 18, 2019, FINRA sanctioned Judith Johnston, barring her indefinitely from the securities industry for the following:

“Without admitting or denying the findings, Johnston consented to the sanction and to the entry of findings that she refused to appear for FINRA on-the-record testimony in connection with an investigation into multiple customer complaints regarding the sale of variable annuities when Johnston was registered with a member firm.”

For a full copy of the sanction, click http://www.finra.org/sites/default/files/fda_documents/2018056891001%20Judith%20A.%20Johnston%20CRD%205532549%20AWC%20jm.pdf

Additionally, Judith Johnston has eight customer complaint disclosures on her CRD.  The allegations include the following sales practice violations:

  • August 2018 – “Customer alleges that a VUL solicited and described by the RR’s spuse in May 2012 is not the policy he owns.  Customer also alleges that the RR never disclosed that her husband was not an agent, and never disclosed the key parts and risks of the product.”
  • September 2017 – “Customer alleged that they were misled regarding their variable annuities purchased in January and March 2016.”  The matter settled for $16,301.03.
  • June 2017 – “Customers allege that they were misled abut the fees associated with their Vas and VULs purchased beginning in August 2010 and they subsequently discovered that the RR’s husband was not employed by the Firm or licensed to sell the products.  Customers request that the Firm waive surrender charges.”  That matter is currently pending.
  • March 2017 – “Customers allege that the RR was complicit in helping her husband deceive them into believing that he was associated with the Firm and was licensed to sell VAs.  They further allege that due to her complicity, they agreed to his recommendationthat they take a $1.4 million dollar loan to establish a VA, and believd his misstatements of the performance, riders, and total fees and expense charges associated with the VAs.”  That matter settled for $445,161.57.

For a copy of Judith Johnston’s CRD, click https://brokercheck.finra.org/individual/summary/5532549

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 represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, 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.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]