A Registered Principal, over the course of being associated with the NWT Financial Group and Greenwing Securities, while being employed with a state-registered investment adviser company, learned that reports to investors contained inconsistent and/or erroneous information.  He made no disclosures to investors.  Specifically, Baton Rouge-based Scott Davis Johnson learned that performance values being reported in monthly statements to investors were inconsistent with actual performance figures to investors.  He nonetheless continued to forward monthly statements to investors when requested to do so. 

Johnson, did however, bring the matter up with the president of IA company - i.e., that the gain/loss values reported in the monthly statements were inconsistent with actual performance of the funds.  The president falsely replied that the statements reflected personal monetary contributions he made to the funds in the form of waived management fees. 

Even with knowing that the performance values represented “adjusted” values, Johnson chose to continue forwarding the statements to investors without informing them.  Johnson also proceeded without attempting to confirm whether the investment adviser company’s president was actually making monetary contributions. 

For his silence and "innocent or naive" complicity in this matter, Johnson was fined $5K and suspended 4 months.   This is FINRA Case #2009018077101.   [Disciplinary Action for June 2011]

.