Sampson Pearson Jr., Formerly of Northwestern Mutual Investment Services, Accused of Defrauding Clients

Northwestern Mutual was fined $350k for failing to prevent Pearson from transferring client funds into his personal account.

The Sonn Law Group is investigating allegations that Sampson Pearson Jr. committed fraud. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

sampson-pearson-defrauding-clientsSampson Pearson Jr. (CRD#: 4159298) was a registered broker with Northwestern Mutual Investment Services from March 2001 until March 2017. Northwestern Mutual was recently fined $350,000 for failing to prevent Pearson from diverting hundreds of thousands of dollars from customer accounts into his own while he was a broker.

Pearson has since been charged in federal court with mail fraud, aggravated identity theft, and filing false tax returns based on his alleged involvement in a scheme to defraud clients of Northwestern Mutual by taking money from their annuities.

According to Pearson’s indictment charges, Pearson directed Northwestern mutual to, “deposit the proceeds of the fraudulently obtained loans into an account he secretly controlled and then used the funds to pay personal expenses and fund his lifestyle.” 

After a customer noticed a discrepancy in her loan records, she notified Northwestern Mutual, who launched an investigation into Pearson’s activities. Without admitting or denying FINRA’s findings, Northwestern Mutual accepted the fine in an agreement with FINRA. 

The brokerage “did not have a reasonable supervisory system to review and monitor transfers of customer funds to third-party accounts and outside entities,” the agreement stated. “Consequently, (Northwestern Mutual Investments) failed to detect that [Pearson] made 23 transfers totaling $473,496 to his own bank account, the same bank account where he received his firm commissions.” Northwestern Mutual Investments has since “taken steps to detect similar conduct in the future,” Northwestern Mutual said in its statement.

Pearson has thirteen disclosures on his BrokerCheck report.


October 2017 Customer Dispute


October 2017 Customer Dispute


August 2017 Customer Dispute


August 2017 Customer Dispute


June 2017 Regulatory Judgment


June 2017 Customer Dispute


May 2017 Customer Dispute


May 2017 Customer Dispute


May 2017 Customer Dispute


May 2017 Customer Dispute


May 2017 Customer Dispute


April 2017 Customer Dispute


March 2014 Judgment/Lien


Contact Us Today

The Sonn Law Group is currently investigating allegations that Sampson Pearson Jr. committed fraud.  We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.