Advisor Alert: Our Attorneys Are Investigating Jonathan Douglas Freeze For Investment Fraud
Did You Lose Money Because of Jon Freeze?
Filed: November 6, 2023
Jon Freeze currently has one (1) pending regulatory event, and one (1) pending civil event. Overall, he has been the subject of three (3) regulatory events, two (2) termination events, one (1) civil event, and nine (9) customer complaints. As an investor, you may be entitled to compensation for losses accrued due to mismanagement of your investments.
Let’s begin our Patil Law Advisor Alert with a summary report on Jonathan Douglas Freeze.
Who Is Jonathan Douglas Freeze?
- Advisor Name: Jonathan Douglas Freeze
- Aliases: Jon Freeze, Jonathan D Freeze
- CRD: 2642023
- Location: Canonsburg, Pennsylvania
- Current Employer: Currently Not Registered
- Previous Firms: Fortune Financial Services, Inc., Summit Brokerage Services, Inc., and LPL Financial LLC
- Number of Known Customer Complaints: 9
- Number of Known Regulatory Events: 3
- Number of Known Termination Events: 2
- Number of Known Civil Events: 1
- Can Jonathan Freeze Be Sued: Yes, in Private Arbitration
- Can Jonathan Freeze’s Employers Be Sued For Failing to Supervise Actions: Yes, in Private Arbitration
- Highest Damages Allegation: $370,000
- Highest Settlement: $102,305
If you have suffered investment losses by Jonathan Freeze, we strongly encourage you to exercise your rights to experienced legal representation. Recover what is owed to you by retaining an investment fraud lawyer. Reach out to the legal team at Patil Law, P.C. via the secure online form or call the firm directly toll-free at 1-800-950-6553.
Customer Complaints Filed Against Jon Freeze For Broker Misconduct
As of this publication date, Jonathan Freeze has been the subject of 3 regulatory events, 2 termination events, 1 civil event, and 9 customer disputes. Let’s review them below.
In June 2021, the United States Securities and Exchange Commission alleged that Jonathan Freeze, collectively with two others (collectively known as “the defendants”), orchestrated fraud purported to a raise money for the renewable energy company, Alternative Energy Holdings, LLC (“AEH”). Mr. Freeze and the other defendants were officers and managing members of AEH. From June 2016 through Feburary 2018, Mr. Freeze and the other two defendants raised approximately $2.1 million from at least 25 investors through a fraudulent offering of securities in the form of at least 31 promissory notes, many of which included an equity component, issues from AEH or entities controlled by one of the defendants. Instead of investing the money as promised, Mr. Freeze and the defendants used the majority of the investor proceeds for their personal benefit and to repay at least one existing investor. To induce investment in AEH, Mr. Freeze and the two other defendants falsely told investors, among other things, that their money would be used for expenses related to a number of waste-to-energy projects in which AEH was involved. Mr. Freeze and the other defendants also told prospective investors, many of whom were Mr. Freeze’s broker-dealer customers and neighbors, that they had each personally invested in AEH when, in reality, they had not invested any of their own money in AEH. Mr. Freeze and the defendants further deceived investors by promising outsized returns on the promissory notes, despite the fact that AEH had no source of short-term revenue and no realistic expectation of making timely payments. Instead of using the funds as promised, Mr. Freeze and the defendants divided up investor proceeds, often immediately upon receipt, and used the funds to pay for personal expenses, including frequent casino visits, expensive clothing, meals, and vacations. One of the defendants also used investor funds to pay a portion of the criminal fine for his convictions of grand theft and forgery related to selling a promissory note in another energy venture. By engaging in the conduction described above, Mr. Freeze and the defendants violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. This matter is currently pending in Federal Court.
In June 2019, a FINRA arbitration was filed against or in reference to Jonathan Freeze by multiple customers of Fortune Financial Services, Inc. alleging that Mr. Freeze facilitated the authorized liquidation of $175k from clients account to purchase promissory notes between July and October 2016. Per the customers, they lost over $175,000 because of Mr. Freeze’s actions. On June 23, 2021, Mr. Freeze settled the claim for $40,000.
In March 2019, a FINRA arbitration was filed against or in reference to Jonathan Freeze by a customer of Fortune Financial Services, Inc. alleging selling away. Mr. Freeze requested and received funds to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer. Per the customer, he/she lost over $330,000 because of Mr. Freeze’s actions. On March 24, 2021, Mr. Freeze settled the claim for $102,305, and some or all of this amount may have been paid by Mr. Freeze’s employer and/or insurance carrier.
In March 2019, a FINRA arbitration was filed against or in reference to Jonathan Freeze by a customer of Fortune Financial Services, Inc. alleging selling away. Mr. Freeze requested and received funds to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer. Per the customer, he/she lost over $84,000 because of Mr. Freeze’s actions. On March 24, 2021, Mr. Freeze settled the claim for $6,181, and some or all of this amount may have been paid by Mr. Freeze’s employer and/or insurance carrier.
In February 2019, a FINRA arbitration was filed against or in reference to Jonathan Freeze by a customer of Fortune Financial Services, Inc. alleging selling away. Mr. Freeze received $54,000 to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer. Per the customer, he/she lost over $90,000 because of Mr. Freeze’s actions. On March 24, 2021, Mr. Freeze settled the claim for $16,742, and some or all of this amount may have been paid by Mr. Freeze’s employer and/or insurance carrier.
In February 2019, a FINRA arbitration was filed against or in reference to Jonathan Freeze by a customer of Fortune Financial Services, Inc. alleging selling away. Mr. Freeze requested and received $300,000 to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer. Per the customer, he/she lost over $370,000 because of Mr. Freeze’s actions. On March 24, 2021, Mr. Freeze settled the claim for $15,522, and some or all of this amount may have been paid by Mr. Freeze’s employer and/or insurance carrier.
In February 2019, a FINRA arbitration was filed against or in reference to Jonathan Freeze by a customer of Fortune Financial Services, Inc. alleging that Mr. Freeze received $50,000 to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer. Per the customer, he/she lost over $75,000 because of Mr. Freeze’s actions. On March 24, 2021, Mr. Freeze settled the claim for $15,522, and some or all of this amount may have been paid by Mr. Freeze’s employer and/or insurance carrier.
In February 2019, a FINRA arbitration was filed against or in reference to Jonathan Freeze by a customer of Fortune Financial Services, Inc. alleging selling away. Mr. Freeze requested and received $60,104 to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer. Per the customer, he/she lost over $118,500 because of Mr. Freeze’s actions. On March 24, 2021, Mr. Freeze settled the claim for $18,626, and some or all of this amount may have been paid by Mr. Freeze’s employer and/or insurance carrier.
In December 2017, a complaint was filed against or in reference to Jonathan Freeze by a customer of Fortune Financial Services, Inc. alleging unsuitable investment, may be promissory notes sold away. Per the customer, he/she lost over $165,000 because of Mr. Freeze’s actions.
In October 2017, a FINRA arbitration was filed against or in reference to Jonathan Freeze by a customer of Fortune Financial Services, Inc. alleging selling away. Mr. Freeze requested and received $30,000 to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer. Per the customer, he/she lost over $30,000 because of Mr. Freeze’s actions. On March 24, 2021, Mr. Freeze settled the claim for $9,285, and some or all of this amount may have been paid by Mr. Freeze’s employer and/or insurance carrier.
In August 2017, FINRA initiated a regulatory action against or in reference to Jonathan Freeze. Without admitting or denying the findings, Freeze consented to the sanction and to the entry of findings that he refused to provide the documents and information in connection with an ongoing investigation relating to his recommendation of variable annuities.
In October 2015, FINRA initiated a regulatory action against or in reference to Jonathan Freeze. Without admitting or denying the findings, Freeze consented to the sanctions and to the entry of findings that he borrowed $20,000 from his member firm’s customer with whom he had a personal relationship, nevertheless he failed to provide the firm with prior notice of the loan and failed to obtain prior written pre-approval for the loan from the firm. Later, Freeze fully repaid the customer, including interest.
In July 2015, FINRA initiated a regulatory action against or in reference to Jonathan Freeze for violation of FINRA rules 3240 and 2010 for borrowing funds from a customer without obtaining prior written approval. As of this publication date, this action remains pending.
In July 2013, LPL Financial LLC terminated Jonathan Freeze for accepting a loan from a customer in violation of firm policy.
In July 2013, Stratos Wealth Partners, LTD terminated Jonathan Freeze. LPL Financial discharged Jonathan Freeze for accepting a loan from a customer in violation of firm policy.
How To File A Claim Against Jon Freeze (previously with Fortune Financial Services, Inc., Summit Brokerage Services, Inc., and LPL Financial LLC) To Get Your Money Back.
If you have questions about Jonathan Freeze, Fortune Financial Services, Inc., Summit Brokerage Services, Inc., LPL Financial LLC, or the management or performance of your accounts, please contact Attorney Patil for a free initial consultation via email or toll-free at 1-800-950-6553.