SEC In the Matter of E. Herbert Hafen

The Law Offices of Daniel J. Miller, L.L.C. is currently investigating allegations against Hebert Hafen CRD#867068 for financial losses for any of the reasons stated bellow as well as others for individuals doing business with Mr. Hafen at any of the institutions e worked for or with. If you or anyone you know lost money because of the actions of matter at issue in this order, please contact 410 Law Firm for more information and a free consultation.

A Securities and Exchange Commission ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTION 203(f) OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS against Herbert Hafen was published on March 4, 2020.

Excerpts from the oder are as following

“I. The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Section 203(f) of the Investment Advisers Act of 1940 (“Advisers Act”) against E. Herbert Hafen (“Hafen” or “Respondent”).

II. In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the “Offer”) which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, Respondent admits the Commission’s jurisdiction over him and the subject matter of these proceedings, and the findings contained in paragraph 2 below, and consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions (“Order”), as set forth below.

III. On the basis of this Order and Respondent’s Offer, the Commission finds that:

1. Hafen was employed as an investment adviser representative and broker-dealer registered representative in a New York, New York, branch office of two large well-known Financial Institutions that are registered with the Commission as investment advisers and broker- dealers. Hafen was employed by these Financial Institutions from January 2008 until he was terminated in March 2018. Hafen, 64 years old, is a resident of New Canaan, Connecticut.

2. On September 4, 2019, Hafen pled guilty to one count of investment adviser fraud in violation of 15 U.S.C. §§ 80b-6 & 80b-17 and Title 18, U.S.C. § 2 before the United States District Court for the District of New York, in United States v. E. Herbert Hafen, Crim. No. 1:19- cr-00637.

3. The count of the criminal information to which Hafen pled guilty alleged, inter alia, that while employed at the Financial Institutions, he engaged in a scheme to defraud his clients by convincing them that he had access to non-Financial Institution investment opportunities that would pay an annual six percent return. Once Hafen had his clients’ money, he used it, not for any investments, but for his own personal purposes.

IV. In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions agreed to in Respondent Hafen’s Offer.

Accordingly, it is hereby ORDERED pursuant to Section 15(b)(6) of the Exchange Act, and Section 203(f) of the Advisers Act, that Respondent Hafen be, and hereby is barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization; and

Pursuant to Section 15(b)(6) of the Exchange Act Respondent Hafen be, and hereby is barred from participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.

Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against the Respondent, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.

For the Commission, by its Secretary, pursuant to delegated authority.

Vanessa A. Countryman Secretary

Call 410 law firm for help.  The Law Offices of Daniel J. Miller, LLC is currently investigating claims for investors who may have lost money with E. Herbert Hafen and other brokers and broker/dealers for investment losses and fraud.  If you or anyone you know have experienced investment losses from the actions above or other situations, please call 410-LAW-FIRM or fill out the contact us form for a no cost consultation and evaluation of your claim.

 

Contact Information