According to FINRA, Grant Douglas Johnson was fined $15,000 and suspended from association with any FINRA member in all capacities for six months.

Johnson participated in private securities transactions totaling $610,000 without disclosing his participation or receiving written approval from his member firm. He was a 4.9 percent owner of an entity that managed special purpose vehicles facilitating investments in portfolio entities through private offerings. Johnson personally invested $210,000 and had conversations with other potential investors regarding the offerings, who ultimately invested $400,000. He provided these investors with updates about the status of their investments after the offerings closed. The management entity was entitled to collect carried interest as selling compensation after investments reached certain performance benchmarks, and Johnson was entitled to a share of this carried interest.

FINRA's rules require registered representatives to provide written notice to their firms before participating in private securities transactions and to receive written approval. These selling away" rules protect investors by ensuring that firms are aware of all securities activities conducted by their representatives and can supervise those activities. Private securities transactions conducted outside firm supervision create significant risks for investors