Georgia Advisor Fraudulently Invests $5.1 Million in Client Funds, SEC Alleges

Posted on July 21st, 2021 at 1:30 PM
Georgia Advisor Fraudulently Invests $5.1 Million in Client Funds, SEC Alleges

From the Desk of Jim Eccleston at Eccleston Law:

According to a complaint filed by the Securities and Exchange Commission (SEC), a Georgia-based advisor allegedly persuaded two dozen clients to invest nearly $5.1 million in two unregistered funds that purportedly guaranteed growth and limited risk. The complaint alleges that John Robert Jones Jr. owned two private unregistered funds that were operated as Delaware limited partnerships, which were formed in December 2016 and August 2017. Allegedly, Jones began informing potential clients that the investor funds were protected in 2017. Jones also claimed that the investor funds were insured and that his investment approach was designed with a national financial organization, according to the complaint. 

In December 2018, Jones’ scheme was thwarted after a market downturn subjected his clients to an average loss of 57%. The SEC complaint further alleges that Jones informed his clients that the two funds were closed in December due to market volatility, oil price declines as well as interest rate and dividend decreases. Jones indirectly collected $86,823 in management fees between September 2017 and December 2018, according to the complaint. Jones has worked in the investment industry for nearly fifteen years. Jones most recently was associated with the Florida-based Regalia Financial Advisors, which administratively dissolved in September 2019. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccelston law, fraud, client funds, sec

Return to Archive



The work that you and your team have performed on my behalf is exemplary.



May 17, 2024
Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

A former Fidelity Investments advisor, Michael Maeker, has initiated legal action against his former firm, alleging wrongful termination in response to his reporting of anti-investor sales tactics.

May 16, 2024
CFTC Investigates Banks for Potential Whistleblower Suppression

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into several banks, including JPMorgan Chase, Bank of America, and Citigroup, regarding potentially hindering whistleblowers from disclosing information, as reported by Bloomberg News.


May 15, 2024
NFA Issues Order Against Investments LLC

The National Futures Association's (NFA) Business Conduct Committee (BCC) has taken action against Investments LLC, a former NFA Member commodity pool operator and forex firm, for violating multiple NFA compliance rules.