The Investor’s Watchdog

The Investor's Watchdog

Broker Herbert Hafen Sued by SEC for Alleged Securities Fraud

Saturday, September 28, 2019

On September 4, 2019, the SEC filed a Complaint against E. Herbert Hafen alleging that from at least July 2011 through April 2018, Hafen, who was employed as an investment adviser representative and broker-dealer registered representative at Wells Fargo and Morgan Stanley, engaged in a scheme to defraud his clients. This alleged scheme involved Hafen convincing his retail clients that he had access to a purported investment opportunity. He advised clients that the supposed investment would pay an annual six percent return and had little risk. According to the complaint, Hafen convinced his clients to take their money out of the Wells Fargo and Morgan Stanley – including liquidating stock holdings and personal retirement accounts – deposit that money into their personal bank accounts, and then transfer or wire the money to Hafen’s personal bank account. Once Hafen had the money from his clients, he allegedly pocketed it, using it, not for any investments, but for his own personal purposes, including paying house, car, and credit card expenses for himself and family members. While some of the victims received some or all their money back, most of the money was never repaid. During the alleged seven-year scheme, Hafen took more than $1.6 million from 11 victims. Of the total $1.6 million, Hafen has returned approximately $650,000.

The attorneys at ChapmanAlbin have helped hundreds of investors recover millions of dollars in money lost due to investment fraud and other misconduct. If you invested money in Herbert Hafen’s alleged scheme, you may be able to recover from him, Wells Fargo, or Morgan Stanley. Call us today at 1-877-410-8172 for a free consultation.

Author: Jason T. Albin

Jason Albin is an Attorney and Partner at ChapmanAlbin, the investor rights law firm. He has represented hundreds of investors who have lost money due to broker misconduct, unsuitable investment advice and fraud.​ Jason also represents individuals in “whistleblower” suits filed against unscrupulous companies that try to defraud the US federal and state governments.

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