U.S. charges Memphis broker with pension theft
A Memphis-area securities brokerdealer has been indicted on federal charges of embezzling $5.7 million from a Pennsylvania company’s employee pension fund.
Federal prosecutors in Williamsport, Pennsylvania, and securities regulators in Atlanta jointly issued news releases this week announcing charges against John Sherman Jumper of Eads.
The criminal indictment in Pennsylvania accuses Jumper of forging signatures on fraudulent documents to transfer money out of the pension fund. It alleged he used the stolen money to make unauthorized loans and investments and to pay off $1.2 million in personal loans and personal legal expenses.
Jumper is listed as chief executive officer of Alluvion Securities, with offices on Wheelis Road in East Memphis and a home address in western Fayette County.
Jumper was accused of stealing from the Snow Shoe Refractories Employee Pension Plan for Hourly Employees, which included about 129 active and retired employees of a Clarence, Pennsylvania, maker of fire brick, Snow Shoe Refractories.
He was indicted on four counts of wire fraud, three counts of embezzlement from an employee pension benefit plan and five counts of false statements and concealment of facts in pension benefit plan records.
The SEC filed civil charges in federal court in Memphis: three charges of fraud and one charge of disgorgement of received ill-gotten gains.
The government alleges Jumper funneled $3 million from the pension fund into an air-conditioning parts maker, American Tubing Arkansas in Springdale, that he and business associates bought.
Jumper could face up to 65 years in prison and fines if convicted on the criminal charges.
The SEC complaint named Jumperowned companies that it said received money from the pension: Alluvion; American Investments Fund II, LLC; Speedee Brakes, LLC; Thousand Hills Capital, LLC; and Evertone Records, LLC. The SEC seeks to recover pension funds from Jumper and the companies, plus a civil penalty and an injunction.
Reach reporter Wayne Risher at (901) 529-2874 or wayne.risher@commercialappeal.com.