John P. Mendes (CRD #5409060) was a previously registered FINRA broker and investment adviser associated with Independent Financial Group. On December 19, 2022, the Securities and Exchange Commission (SEC) barred Mendes from acting as a broker or investment adviser and engaging in certain activities following the commission’s investigation into insider trading allegations.
The SEC previously filed a civil lawsuit against Mendes alleging that he took part in insider trading by obtaining material nonpublic information from a close friend about an impending merger and acquisition in 2018 prior to a public announcement of the deal. According to the complaint, Mendes:
- Purchased securities of the target company in his wife’s brokerage account and for the accounts of other family and friends who were his clients and customers based on inside information
- Recommended that friends do so as well
After the announcement, the share price increased 18 percent over the previous day’s closing price, resulting in combined profits of approximately $170,000. Such conduct violates Section 10-b of the Securities and Exchange Act of 1934.
On September 20, 2022, a judgment was rendered against Mendes, ordering civil and administrative penalties, including disgorgement of $44,885, other monetary penalties, and an injunction.
On December 19, 2022, the SEC permanently barred Mendes from acting as a broker or investment adviser, associating with brokerage and investment advisory firms, and engaging in certain activities, including participating in any offering of a penny stock.
FINRA BrokerCheck does not list other complaints against Mendes. Nonetheless, in light of the ban, our firm is investigating claims of investment losses by former clients and customers of Mendes and his employer.
How To Recover Your Losses
If you have suffered losses due to securities violations by John P. Mendes, contact Reif Law Group immediately. Federal and state securities laws protect you against investment losses resulting from broker or investment adviser misconduct. But you must act quickly to take legal action and protect your rights. Trust our firm to help you recover your losses. Contact us now for a free consultation.