Ex-Morgan Stanley Broker Sentenced To 30 Months
Please contact Shepherd Smith Edwards and Kantas (SSEK Law Firm) if Elias Herbert Hafen, a former Morgan Stanley (MS) and Wells Fargo (WFC) broker, was your financial representative when you suffered substantial investment losses that you think may be due to fraud. Hafen is sentenced to 30 months in prison for defrauding former clients of over $1.6M.
The prison term comes after Hafen pleaded guilty to investment advisor fraud. Prosecutors contend that Hafen sought to defraud 11 retail customers, between 2011 until 2018, by making them think he had access to a high-yield fund that would bring them guaranteed investment returns.
He advised his then-clients to move money to his personal bank account and he provided them with bogus statements with the name of a fake investment company. Elias Hafen then proceeded to use their funds to pay for his own expenses.
Elias Hafen: A Stockbroker For Almost 40 Years
Elias Hafen was a Morgan Stanley broker from 2008 to 2018. He then left to become a Wells Fargo broker, but the firm fired him not long after because he admitted to making financial arrangements with clients that it had not approved. Also, in 2018, the Financial Industry Regulatory Authority barred Hafen.
His BrokerCheck record, under the name Herbert Hafen, notes that he worked 39 years in the industry. He also has been a registered broker in the past with:
- Bear, Stearns & Co.
- Merrill Lynch
- Piere Fenner & Smith
- Consolidated Capital Securities
- Bateman Eichler
- Hill Richards Inc
- Sutro & Co
In addition to serving a prison sentence and three years of supervised release, Hafen must forfeit nearly $807K and pay $745K in restitution. A parallel Securities and Exchange Commission (SEC) civil case against him over the same allegations made in the criminal fraud case is still pending.
Broker Fraud Lawyers
Already there is a customer dispute alleging misappropriation on Hafen’s record that was settled for $430K. At SSEK Law Firm, our stockbroker fraud attorneys go after the brokerage firms whose financial representatives sought to steal their clients’ money, causing serious financial harm to investors who entrusted them to help them safeguard and grow their funds.
Over the last 30 years, we have helped our clients recover many millions of dollars. Your first consultation with us is a free, no-obligation case assessment.