Joe Hede, Paulson Investment Company, New York, NY
SEC Reportedly charges Joe Hede and Kevin Graetz with Selling Away in connection with Belize Infrastructure Fund I
According to a press announcement yesterday, the Securities and Exchange Commission announced charges against former brokers Minish “Joe” Hede and Kevin Graetz for acting as unregistered brokers in the sale of securities issued by Belize Infrastructure Fund I, LLC.
Hede and Graetz purportedly sold approximately $9.6 million worth of Belize Fund notes to their customers at the brokerage firm where they were then registered, even though the firm had already declined to approve the Belize Fund’s notes for offer and sale to its customers, according to the SEC’s charges.
The SEC alleges that Hede and Graetz profited through the commissions from the sales, while the firm’s customers purportedly suffered significant losses. The SEC reportedly charged Belize Fund and its owner in 2018, alleging that he misappropriated more than $5.98 million of funds obtained from investors in Belize Fund notes and “used the stolen principal to fund his family’s lavish lifestyle.“
Hede’s FINRA broker report indicates that he reportedly has 7 customer complaints filed against him during his career in the securities industry. He has one pending complaint from 2019 alleging “Failure to disclose material information related to two private placement offerings.” The damage amount requested is $1,015,000.
“Selling away,” a practice of selling unapproved securities, is prohibited in brokerage firms and RIAs.
Hede was reportedly affiliated with Paulson Investment Company in New York, NY from 2013 until 2017 when he was reportedly discharged ”subsequent to initiation of customer-related arbitration claim alleging fraud, negligence and unjust enrichment and for failure to comply with internal investigation.”
Filing a Complaint against your Brokerage Firm
When brokers abuse client accounts or conduct transactions that violate securities laws, such as selling away or making unsuitable investments, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
If you are concerned about investments with Minish “Joe” Hede, the securities attorneys of The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
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