According to FINRA, Justin Casey Funakura has been assessed a deferred fine of $10,000, suspended for six months, and ordered to pay deferred disgorgement of $4,000 plus interest for participating in private securities transactions without required approvals.

Funakura solicited investors to invest a total of $120,000 in promissory notes issued by a company claiming to operate crypto asset mining and investment programs. He did so without providing prior written notice to, or obtaining approval from, his member firm. One of the investors was a customer of the firm.

Funakura's involvement included introducing investors to the investment opportunity, providing information about funds offered by the company, and facilitating transactions. He received $4,000 as a commission for soliciting these investments. The company later defaulted on the notes.

Subsequently, the State of Illinois Securities Department issued a Final Order of Prohibition against the company, finding that the company and related individuals committed fraud in the offer and sale of securities.

Funakura also falsely answered "no" on annual compliance questionnaires when asked whether he had engaged in private securities transactions or received compensation for transactions outside of the firm.

The suspension runs from March 3, 2025, through September 2, 2025.

What Investors Can Learn: Be cautious of investment opportunities offered outside normal brokerage channels. Private securities transactions may lack the regulatory protections and firm oversight that apply to regular brokerage transactions. Crypto-related investments require particular scrutiny given the prevalence of fraud in this space.