The law offices of Gana Weinstein LLP are currently investigating claims that Broker Richard Hogan (Hogan) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Hogan was employed by Merrill Lynch, Pierce, Fenner & Smith Incorporated at the time of the activity. If you have been a victim of Hogan’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a final customer complaint on July 26, 2022.
Without admitting or denying the findings, Hogan consented to the sanctions and to the entry of findings that he participated in private securities transactions in Asia-based funds without providing prior written notice to his member firm. The findings stated that Hogan participated in five private securities transactions in Asia-based funds by three firm customers, who invested a total\<char_lb_r>\, of $630,000 in the funds. Hogan participated in the transactions by soliciting the investments from the customers and directing his assistants to process the investment documentation. The firm did not offer these funds for investment by customers, and the customers’ investments were not custodied with the firm. Hogan disclosed on the firm’s associate investment monitoring (AIM) system that he had personally invested in a Hong Kong equity fund but attested that he had not co-invested with customers or solicited others in connection with the investment. Contrary to this representation, two customers had invested in the same fund, based upon Hogan’s recommendation, prior to his AIM disclosure.
FINRA BrokerCheck shows a settled customer complaint on June 05, 2020.
Client alleged Selling Away from April 2011 to June 2020
We have a strong track record of advocating for victims of fraud when advisors obtain loans from clients or engage in securities sales via OBAs. The sale of unauthorized investment products, fraudulent schemes that disguise misused funds, and other deceptive practices are collectively known in the industry as “selling away,” a serious breach of securities laws. In the industry, “selling away” describes a financial advisor soliciting investments in companies, promissory notes, or other securities that lack prior approval from their affiliated brokerage firm. In some cases, these investments are legitimate, but more often than not, they result in Ponzi schemes or financial advisors converting funds for personal use.
However, federal securities laws and the FINRA rules require firms to monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. To effectively supervise their brokers, each firm must implement procedures to monitor advisors’ activities and interactions with the public. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.
In cases of selling away the investor is unaware that the advisor’s investments are improper. In many of these cases the investor will not learn that the broker’s activities were wrongful until after the investment scheme is publicized, the broker is fired or charged by law enforcement, or stops returning client calls altogether.
Hogan has been in the securities industry for more than 29 years. Hogan has been registered as a Broker with Merrill Lynch, Pierce, Fenner & Smith Incorporated since 2002.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.