Securities Lawyers Blog
Many investors who have lost money with a broker at Hennion & Walsh, Inc. wonder whether they can recover their investment losses and how long they have to act. The securities arbitration attorneys at Gana Weinstein LLP represent investors in FINRA arbitration, the forum where most claims against brokerage firms and stockbrokers are decided. Our attorneys can explain the FINRA arbitration process, the time limits that apply to your claim, and the damages that may be recovered.
Hennion & Walsh is a broker-dealer and investment firm that specializes in municipal bonds for individual investors, along with other fixed income and equity products and wealth management services. Founded in 1990, the firm is headquartered in Parsippany, New Jersey, and serves individual investors across the United States.
Hennion & Walsh, Inc. – By the Numbers:
- CRD #: 25766
- Regulatory Events: 12
- Arbitration Events: 6
- Broker Employees: 117
Hennion & Walsh, Inc. – In the News:
FINRA v. Hennion & Walsh, Inc. (Case #2013039202501) – Between December 1, 2011 and December 31, 2016 (the “Relevant Period”), certain Hennion & Walsh registered representatives recommended 645 unsuitable series-to-series switches between substantially similar Unit Investment Trusts (“UITs”) that had substantially similar investment objectives. The Firm’s registered representatives did not reasonably assess whether the alleged benefits to the customers from the switches outweighed the additional sales charges the customers would incur by making the switch. The Firm also failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to detect and prevent unsuitable series-to-series UIT switching. Based on the foregoing, the Firm violated NASD Rule 2310 (for conduct prior to July 9, 2012), FINRA Rule 2111 (for conduct on or after July 9, 2012), NASD Rule 3010(a) (for conduct prior to December 1, 2014), FINRA Rule 3110(a) (for conduct on or after December 1, 2014), and FINRA Rule 2010.
FINRA v. Hennion & Walsh, Inc. (Case #2015043155601) – Between December 2013 and March 2015 (the “Relevant Period”), Hennion & Walsh effected approximately 65 transactions in six municipal bonds below the minimum denomination set for the bonds. For 63 of those transactions, the firm failed to disclose to customers that their purchase was in an amount below the minimum denomination. In addition, during the Relevant Period, several of these bonds and two additional bond issues were restricted for purchase to Qualified Institutional Buyers (“QIBs”) but were sold to non-QIBs. Finally, while Hennion & Walsh had written supervisory procedures prohibiting the sale of municipal securities to customers below the minimum denomination, subject to certain exceptions, it did not have any systems or controls in place to monitor and prohibit sales below the minimum denomination or to QIBs. As a result of the foregoing conduct, Hennion & Walsh violated MSRB Rules G-15(f), G-17 (for transactions executed before July 5, 2014), G-19, G-47(a) (for transactions executed on or after July 5, 2014) and G-27(b).
Our investment fraud lawyers have recovered losses for hundreds of investors through FINRA arbitration awards and settlements. If you have concerns about a broker at Hennion & Walsh, Inc., contact Gana Weinstein LLP for a free consultation.