Justin Funakara Fired over Allegedly Improper Transaction
Justin Funakara (CRD# 5718194), formerly a broker registered with Farmers Financial Solutions, improperly participated in a private securities transaction, according to allegations detailed by the firm. MDF Law is investigating the former Bakersfield, California financial professional for similar conduct. We encourage investors with concerns to call us as soon as possible.
To learn more about the circumstances underlying Mr. Funakara’s termination, continue reading this post. The information herein is based on a November 29, 2023 examination of his Financial Industry Regulatory Authority (FINRA) BrokerCheck profile.
Why Did Farmers Financial Solutions Fire Justin Funakara?
On October 17, 2023, Farmers Financial Solutions fired Mr. Funakara, according to a disclosure on his BrokerCheck record. The firm terminated his registration over allegations that he failed to provide prior written notice of a proposed private securities transaction before participating in it. The disclosure provides no additional context surrounding the alleged underlying private securities transaction.
Understanding Private Securities Transactions
FINRA Rule 3280 describes private securities transactions as “any securities transaction outside the regular course or scope of an associated person’s employment with a member.” Crucially, the rule prohibits registered representatives like Mr. Funakara from participating “in any manner in a private securities transaction” unless they meet the rule’s requirements. One such requirement is that representatives “provide written notice to the member with which he is associated.” This prior written notification to the firm must describe “in detail” the proposed transaction, their involvement, and whether they have received or may receive selling compensation for their involvement. If indeed they may receive compensation, they are required to receive the firm’s written approval for the transaction. They are also required to document the transaction in the firm’s books and records. Broker-dealer firms may also have their own rules regarding private securities transactions to which brokers are also subject.
FINRA: Funakara Last Based in Bakersfield, California
Justin Funakara launched his career as a broker in 2009, when he joined Farmers Financial Solutions’ office in Bakersfield, California. He remained at the firm until his termination in October 2023. According to his FINRA BrokerCheck profile, he has remained unregistered with any broker-dealer firm since his firing. With 14 years of experience as a broker, he has completed one state securities law exam, two general industry/products exams, and one principal/supervisory exam.
Investment Complaints? Call MDF Law Today
Have you suffered losses on investments recommended by Justin Funakara? You may have grounds to pursue the recovery of lost funds through the FINRA arbitration process. Contact MDF Law for a free consultation, especially if any of the following conditions apply:
- Your accounts included complex and/or risky investments whose characteristics were not adequately disclosed;
- Your investments involved excessive and/or undisclosed fees or other charges;
- Your investments comprised a significant portion of your net worth.
MDF Law’s dedicated investor advocates have proven experience navigating the complexities of investment fraud cases, recovering more than $100 million for our clients. We take cases on contingency, meaning our clients only pay a fee if they win, and we offer free consultations across the US. Call 800-767-8040 to discuss your case today.