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Herbert H. Hafen formerly with Wells Fargo Clearing Services, LLC And Morgan Stanley Has 3 Customer Complaints for Alleged Broker Misconduct In the Past Year

Who is Herbert H. Hafen formerly with Wells Fargo Clearing Services, LLC and Morgan Stanley?

Herbert Hafen (CRD #867068) who was formerly registered with Wells Fargo Clearing Services, LLC and located in New York, New York is a subject of one of our many securities industry sales practice abuse investigations.  

Prior to Wells Fargo Clearing Services, LLC, Herbert Hafen was associated with Morgan Stanley and 5 other investment advisory and brokerage firms with a history of customer complaints and securities industry regulatory problems.

Herbert Hafen committed serious criminal and civil securities law violations and was recently sentenced to 30 months in prison, 3 years of supervised release, ordered to pay $745,000 in restitution in order to forfeit 806,750 in assets. According to the allegations in the SEC’s civil complaint, Herbert Hafen engaged in the scheme to defraud his clients by convincing them he had access to an investment opportunity away from where he worked. 

He advised the clients that the supposed investment would pay an annual 6% return and add little risk. He convinced his clients to take the money out of their brokerage accounts and then transfer or wire the money to his personal bank account which he did not use for investment purposes, but rather for his own personal purposes. 

This was a classic Ponzi scheme whereby some investors receive their money back in others did not.  Over the years, he took more than $1.6 million from 11 victims and returned only $650,000.  His been permanently barred from the securities industry.

Wells Fargo and Morgan Stanley Broker Misconduct

In his career, Herbert Hafen has been the subject of 4 customer complaints that we know about, 3 of those complaints were filed against Wells Fargo and/or Morgan Stanley in the last year to recover monies misappropriated and investment losses.

Three of Herbert Hafen’s 4 customer complaints were settled in favor of investors. There is currently 1 pending customer complaints filed against Herbert Hafen’s former employer, Morgan Stanley for investment losses caused by his alleged misconduct.

Allegations Against Herbert Hafen  

A sample of the allegations made in the FINRA reported arbitration claim settlements and pending complaints for investment losses are as follows:

  • The customer alleged that the financial advisor made unsuitable investment recommendations.
  • The client complained that the financial advisor defrauded her into sending her retirement funds to his personal account for a high-yield investment.

Herbert Hafen Red Flags & Your Rights as An Investor

Of course, Herbert Hafen did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags that should put all current and former customers of Herbert Hafenat Wells Fargo Clearing Services, LLC and Morgan Stanley on alert to review carefully the activity and performance of their accounts and question whether Herbert Hafenhas engaged in any stockbroker misconduct that may have caused them investment losses.

A large number of customer complaints at Wells Fargo Clearing Services, LLC and Morgan Stanley also raises questions about supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor.

File A Claim to Recover Your Investment Losses At Wells Fargo Clearing Services, LLC And Morgan Stanley

If you have questions about Wells Fargo Clearing Services, LLC, Morgan Stanley, and/or Herbert Hafenand the management or performance of your accounts, please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

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Robert Wayne Pearce

Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $170 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.

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