Recover JDN Capital Josh Nicholas Investment Losses
Summary
In July 2020, the customers asked Nicholas to provide a copy of an account statement showing that JDN Capital had invested the proceeds of the promissory note. Prior to joining Merrill Lynch and continuing after his association, Nicholas traded futures contracts through his corporate entity, JDN Capital. Mishandling customer funds is a serious violation of FINRA rules and could result in prosecution by state or federal criminal agencies, such as the case is with Joshua Nicholas. As noted in its 2018 Examination Findings, FINRA states that discretionary trading authorization can expose investors to material risks. The monitoring and review at the branch office is accomplished through the use of exception reports developed by the brokerage firm to flag certain activities in customer accounts.