SEC Charges Alluvion Securities
SEC Charges Businessman with Stealing Millions from a Pension Plan
Litigation Release No. 24116 / April 18, 2018
Securities and Exchange Commission v. John Jumper (Defendant) and Alluvion Securities, LLC, American Investments Fund II, LLC, Speedee Brakes, LLC, Thousand Hills Capital, LLC and Evertone Records, LLC (Relief Defendants), No. 2:18-cv-02259 (W.D. Tenn. filed Apr. 17, 2018)
Washington D.C., April 18, 2018 – The Securities and Exchange Commission charged a Memphis, Tennessee-area businessman AND Alluvion Securities with stealing approximately $5.7 million from a Pennsylvania company’s pension plan.
According to the SEC’s complaint filed in federal court in Memphis, Tennessee, on three separate occasions between March 2015 and February 2016, John S. Jumper stole millions of dollars from Snow Shoe Refractories, LLC’s pension plan. Jumper allegedly forged documents, including fake Board of Directors resolutions, to steal the funds. Jumper allegedly used the stolen funds to capitalize other businesses he owned, to repay personal debts and, in one instance, to invest in another business that paid a significant fee to a broker-dealer that Jumper co-owned.
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced parallel criminal charges against Jumper.
The SEC’s complaint charges Jumper with violating Sections 17(a)(1) and (2) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks disgorgement of ill-gotten gains plus interest, penalties and injunctive relief. The complaint also names Alluvion Securities, LLC, American Investments Fund II, LLC, Speedee Brakes, LLC, Thousand Hills Capital, LLC and Evertone Records, LLC as relief defendants for the purpose of recovering stolen pension funds allegedly in their possession.
The SEC’s investigation was conducted by Peter Diskin and Grant Mogan in the Atlanta Regional Office. The litigation is being led by Shawn Murnahan and Graham Loomis. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Middle District of Pennsylvania, the Federal Bureau of Investigation, and the Financial Industry Regulatory Authority.