Barred Broker John Chrysadakis' Alleged Conversion at Mason's Lodge Illustrates Affinity Fraud Risk

FINRA barred Northwestern Mutual Investment Services broker John A Chrysadakis during an investigation into alleged conversion from Fidelity Masonic Temple Association, Inc., a fraternal organization.

Though AWC #2018060563201 indicates that FINRA barred Chrysadakis (CRD #5680661) for failing to cooperate with its investigation, a BrokerCheck report indicates that Northwestern Mutual permitted Chrysadakis to resign while under internal review for alleged fraudulent activity and undisclosed financial judgment/liens.

Specifically, Chrysadakis allegedly forged non-variable insurance forms and submitted unauthorized non-variable policy applications.

The Fidelity Masonic Temple Association additionally filed a complaint against Chrysadakis, alleging he converted $100,000 from the group when he served as its treasurer.

Fraternal organizations are susceptible to affinity fraud, too. It may come internally from a broker or investment advisor given responsibility over the organization’s accounts. It may also come externally from a broker/advisor referred by a member, a broker/advisor with accounts of multiple chapters. Lastly, the affinity fraud may come from the broker/advisor preying on individual members of the organization.

In December 2017, the North American Securities Administrators Association (NASAA) identified affinity fraud as one of the securities industry's top threats to investors.

Often the treasurers or committee in charge of a fraternal, cultural, or religious organization’s finances, through no fault of their own, do not have the level of sophistication to recognize broker/advisor misconduct. The situation is therefore easily exacerbated when the organization's treasurer is the one defrauding the organization through conversion or misappropriation of funds, as allegedly occurred with Chrysadakis at the Mason's Lodge.

The Law Offices of Jonathan W. Evans & Associates is investigating multiple cases involving broker misconduct with the accounts of fraternal organizations, charitable organizations, and religious institutions with many factual similarities to Chrysadakis.

If you have invested with former Northwestern Mutual broker John Chrysadakis aka John Chrysanthakopoulos or with any registered representative or financial adviser whose forgery or fraudulent misconduct at a fraternal, cultural, or religious organization has proven harmful to your investments or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

Related Posts
  • Beverly Hills Broker Antoine Souma Barred After Failing to Cooperate with FINRA Investigation Read More
  • Centaurus Financial Penalized $1 Million for Unsuitable Structured Product Sales Read More
  • SoCal Broker Jay Eng Cited for Impersonating Customer in Call with Annuity Company Read More