JMJ Financial and Justin W. Keener

The investigation focuses on whether Justin W. Keener and JMJ made false and/or misleading statements and/or omitted material information to issuers in connection with its' investments into OTC Markets, NASDAQ or NYSE companies. Justin W. Keener and JMJ are the subject of a Securities and Exchange Commission enforcement action commenced in the United States District Court for the Southern District of Florida. The SEC's complaint, filed in federal court in Miami, Florida, alleges that between January 2015 and January 2018, Keener engaged in the business of purchasing convertible notes from penny stock issuers, converting the notes into shares of stock at a large discount from the market price, and selling those newly issued shares into the market at a significant profit. Keener allegedly purchased convertible notes from more than 100 separate issuers and sold more than 17.5 billion shares of newly issued penny stock into the market, generating over $21.5 million in profits. As alleged, Keener was not registered as a dealer with the SEC, in violation of the mandatory registration provisions of the federal securities laws. By failing to register, Keener avoided certain regulatory obligations for dealers that govern their conduct in the marketplace, including regulatory inspections and oversight, financial responsibility requirements, and maintaining books and records. The Securities Act specifically voids these transactions.

Press Release

INVESTIGATION ALERT: The Basile Law Firm P.C. Announces it is Investigating Claims Against Justin W. Keener and JMJ Financial and Encourages Issuers with Losses of $500,000 or more to Contact the Firm

New York, April 6, 2021 — The Basile Law Firm P.C., a national securities litigation and public company restructuring firm with offices in Dallas, New York and Naples, announces that it is investigating claims on behalf of issuers against Justin W. Keener and JMJ Financial (“JMJ”) for possible securities fraud violations by engaging in the business of buying and selling securities without registering with the SEC as a dealer.

The investigation focuses on whether JMJ issued false and/or misleading statements and/or failed to disclose information pertinent to their investments into issuers trading on the OTC Markets, NASDAQ and the NYSE.

The SEC has commenced an enforcement action against Justin W. Keener and JMJ Financial for violating the Securities Act dealer registration requirement. According to the SEC, “Keener engaged in the business of purchasing convertible notes from penny stock issuers, converting the notes into shares of stock at a large discount from the market price, and selling those newly issued shares into the market at a significant profit. Keener allegedly purchased convertible notes from more than 100 separate issuers and sold more than 17.5 billion shares of newly issued penny stock into the market, generating over $21.5 million in profits. As alleged, Keener was not registered as a dealer with the SEC, in violation of the mandatory registration provisions of the federal securities laws. By failing to register, Keener avoided certain regulatory obligations for dealers that govern their conduct in the marketplace, including regulatory inspections and oversight, financial responsibility requirements, and maintaining books and records.

The typical result of an issuer selling convertible notes to a toxic convertible note lender is a depressed stock price and an increase in the shares issued and outstanding after conversions of debt into stock at fixed percentage discounts. Such conversions of debt into stock and subsequent sales of that stock by the funder drives down the market capitalization of the company resulting in loss of shareholder value.

 

If the funder is required to register as a dealer under the Exchange Act and fails to, the Exchange Act voids those transactions .

We encourage you to contact attorney Mark R. Basile, Esq. of The Basile Law Firm P.C. , 390 N. Broadway, Ste,. 140 Jericho, New York 11753 at 516-455-1500 x110 to discuss your rights free of charge. You can also reach us through the firm’s website at www.thebasilelawfirm.com, or by email at mark@thebasilelawfirm.com.

The Basile Law Firm P.C. represents issuers around the world focusing on securities litigation lawsuits and public company restructuring.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable laws and rules of ethics.

CONTACT:

The Basile Law Firm P.C.

Mark R. Basile, Esq.

516-455-1500 x110

mark@thebasilelawfirm.com

eric@thebasilelawfirm.com
joey@thebasilelawfirm.com

www.thebasilelawfirm.com

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