May 10, 2021
On March 10, 2021, the Securities and Exchange Commission (SEC) released an Order Instituting Administrative Proceedings against former investment adviser representative Minish “Joe” Hede, a former registered representative associated with Paulson Investment Company in New York, New York.
According to his FINRA BrokerCheck report, Hede was associated with Paulson Investment from February 2013 to May 2017 when the firm terminated his registration subsequent to the initiation of customer arbitration that alleged fraud, negligence and unjust enrichment, and failure to comply with an internal investigation. FINRA barred Hede in November 2017 for failing to respond to FINRA request for information.
The March 10, 2021 SEC Order relates to an SEC Complaint against Hede and Kevin Graetz and alleged that they sold securities away from their respective firms, knowing and ignoring firm policies and ignoring direct declination of requests to sell the promissory notes not offered by their firms. At least 21 customers collectively invested approximately $9.6 million in this alleged scheme, and lost their entire investment.
As a result of the foregoing, the SEC seeks to impose sanctions, including barring Hede from associating with any broker dealer, investment adviser, or other related association with the securities industry. The SEC also bars Hede from participating in any offering of a penny stock.