FINRA fined and suspended former Farmers Financial Solutions broker Justin Funakura of Bakersfield, California for soliciting investors to invest $120,000 in promissory notes related to crypto asset mining without firm approval. The crypto mining company later defaulted on the notes, resulting in customer losses, while Illinois' Securities Department found that the company and related individuals committed securities fraud.
Investigators found that Justin Casey Funakura (CRD #5718194) participated in prohibited private securities transactions away from his firm, and without permission from the firm. In doing so, Funakura allegedly earned $4,000 in commissions for soliciting the ill-fated investments.
When the crypto asset mining company then defaulted on the notes just months after issuing them to Funakura's solicited customers, the individuals lost their investments, according to FINRA's report. Several months later, the Illinois Secretary of State's Securities Department issued a Final Order of Prohibition, finding that the company and related individuals engaged in fraud in the offer and sales of securities, namely the promissory notes.
According to the January 2023 Final Order of Prohibition on the Illinois Secretary of State's website, Jazzberry Digital Solutions, Olem Corporation LLC (of Paramount, California), and associated respondents Venisia Rosa Garcia (South Gate, CA), Octavia Ayala, and Aldo Pulido made promises of monthly returns of 15% for a six month term, telling investors their money would be invested in Gold, Silver, Cryptocurrencies, and traded on currency trading platform Forex.
In October 2023, Farmers Financial terminated Funakura for failing to notify the firm of proposed private securities transactions prior to participating in them.
If you invested with Justin Funakura or with any other broker or investment adviser who solicited your investment in securities away from or without permission of their employing firm, and such unauthorized transactions were unsuitable for you or resulted in losses or other damages, 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.