Former Customers of Boca Raton, Florida Financial Advisor Request $700K in Damages
Two investors have filed separate Financial Industry Regulatory Authority (FINRA) arbitration claims against Noble Capital Markets registered representative, Joseph Menachem Hain, also known as Joey Hain. Based in Boca Raton, Hain is the broker-dealer’s investment banking director. He also is the co-founder of the advisory firm, Intrinsic Value Partners.
Hain has worked in the industry for 14 years. Other firms where he used to be a broker include Paulson Investment Company, Aegis Capital Corp., Westpark Capital, Tejas Securities Group, Wynston Hill Capital, and Robotti & Co.
In both pending disputes, the customers are accusing Haim of making material misrepresentations about private placements. The claimants are seeking $500K and $200K in damages, respectively.
Our investment fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are speaking to other customers of Joseph Haim who have suffered significant investment losses and want to explore their legal options. Contact SSEK Law Firm and ask for your free case consultation.
Making Material Misrepresentations
Under FINRA Rule 2020, brokers must disclose both the positives and negatives involved in any security that they recommend to a customer. Leaving out material facts, including the risks involved, can be grounds for an investor fraud claim if losses result and the investor was never fully apprised of this key information.
The misrepresentation of a fact is considered material if it was information that a reasonable investor should have known before deciding whether to invest. A customer can also claim securities fraud if the financial advisor purposely left out key facts about an investment. Unfortunately, there are brokers that will make misrepresentations and omissions about certain types of investments in order to sell them and garner high commissions.
At SSEK Law Firm, our misrepresentations and omissions attorneys have been fighting for investors throughout the US for 30 years. We have recovered many millions of dollars for our clients.
What is Private Placement Fraud?
Private placements are unregistered securities and are not suitable for every kind of investor. They are usually issued and sold privately and are highly speculative and risky.
Because they do not have to be registered with the US Securities and Exchange Commission (SEC), these investments are generally unregulated. This means that means their investors don’t enjoy the same protections as those of other securities. This increases the risk of broker fraud.
Private placements are illiquid, which may make them hard to sell. Finding even a secondary market for them can be tough. This may leave an investor holding a private placement for longer than they’d like unless they obtain an exemption.
Also, often there is not a lot of information available to the general public about private placements, which makes it even more essential for a broker-dealer to conduct a thorough assessment of the investment to make sure it is a legitimate one. Failure to perform proper due diligence can be grounds for a FINRA arbitration case if an investor loses money.
Contact Our Florida Investor Lawyers
If you are a Florida investor who lost money while working with Boca Raton financial advisor and Noble Capital Markets broker, Joseph Hain, call SSEK Law Firm at (813) 560-2992. If you live elsewhere in the US, contact us at (800) 259-9010.