November 2019- New York, NY
The FINRA records of Herbert “Elias” Hafen , a financial advisor previously employed by Morgan Stanley, disclose a prior regulatory event, a pending criminal matter, a pending civil matter, a prior customer dispute and a termination from employment.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In 2/2019 Hafen failed to respond to FINRA request for information in connection with a FINRA investigation and was permanently barred from the securities industry.
In September 2019 Hafen pled guilty to investment adviser fraud. Sentencing is scheduled for January 2020.
The Securities and Exchange Commission filed a complaint against Hafen in 9/2019 alleging that from July 2011-April 2018 Hafen defrauded clients of the financial institutions he worked for at that time. VIctims were promised 6% interest in an investment that had little risk. In reality there was no investment and Hafen used the money for personal expenses. Of the $1.6 million he raised from victims only about $650,000 was returned.
In 5/2019, a Morgan Stanley Smith Barney customer was paid $430,000 to resolve allegations that Hafen misappropriated funds.
In 8/2018 Hafen was discharged from Wells Fargo Clearing Services after he admitted to entering into financial arrangements with clients that were not approved by the firm.
Hafen was registered with Wells Fargo Clearing Services from March to September of 2018. Prior to that he was employed by Morgan Stanley Smith Barney from 6/2009-4/2018.
If you have losses in an account handled by Herbert “Elias” Hafen , contact us for a no charge consultation to learn how you may be able to recover damages through FINRA arbitration.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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